Bill: Draft Bank Deposit Tax Reform Act

[MrCheesGuy]

To Amend The Taxation Act

The people of the Commonwealth of Redmont, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:

1 - Short Title and Enactment

(1) This Act may be cited as the 'Bank Deposit Tax Reform Act.'

(2) This Act shall be enacted immediately upon its signage.

(3) This Act has been authored by Former Senator Sofia2750 and co-authored by ElysiaCrynn.

(4) This Act has been co-sponsored by amitycrynn and MrCheesGuy

2 - Reasons

(1) To Amend the Taxation Act

(2) To increase government revenue derived from the financial sector.

(3) To increase transparency in the financial sector by requiring Cash Flow Statements, ensuring that institutions are liquid enough to handle withdrawals.

(4) To ensure banks contribute to the economy based on the volume of capital they manage, while allowing institutions the autonomy to decide how to structure their costs regarding depositors.

(5) To amend the Criminal Code Act

(6) The government is the main economic driver in DC, and so it needs funds to drive that economy.

3 - Amendments
Amendments to the Taxation Act:

5 - Financial Institution Tax
(1) Deposit-taking financial institutions will be taxed on their monthly reported profit.
(a) This tax will be fined by the Department of Commerce.
(b) Taxation is due by the end of the second week of the following month.
(2) Financial Institution Taxation Rates:

Taxation Type	Taxation Rate
Financial Institution Tax	10%
Financial Institution Depositor Insurance Tax	10%
Total	20% of Profits

(1) Deposit-taking financial institutions shall be taxed at a rate of 1% of the gross value of all customer deposits received in the month.
(a) This tax will be fined by the Department of Commerce.
(b) Taxation is due by the end of the second week of the following month.
(2) This tax is a liability of the Financial Institution. The Institution retains the right to determine whether to absorb this cost or pass it to consumers through service fees.


7 - Financial Records and Reporting
(1) Deposit-taking financial institutions must keep detailed accounts of their investment revenue and obligations to their depositors.
(a) Should deposit-taking financial institutions misrepresent their profits or cash flows to the Department of Commerce, the entity will be liable for prosecution.
(b) Profit shall be calculated as revenue less operating costs for the reporting period, minus any losses carried forward from prior reporting periods.
(i) Loss Carry-forward: Any loss (negative profit) reported to the Department of Commerce in a previous monthly Financial Report may be carried forward to offset profits in subsequent periods up to the amount not yet offset in previous reporting periods.
(ii) Only losses that were reported in previously submitted Financial Reports may be carried forward. Losses not previously reported are not eligible for carry-forward.
(iii) The reporting period shall run from the date in the last report or, in the first report, the first day of trading.
(2) Deposit-taking financial institutions are required to report to the Department of Commerce by the end of the first week of the succeeding month:

FINANCIAL REPORT​

(a) Income Statement​

(b) Balance Sheet​

(c) Cash Flow Statement - explicitly detailing the gross value of deposits received during the reporting period.​

(d) Management Discussion & Analysis (MD&A) – a narrative disclosure addressing:​

(i) Any significant changes in the financial condition or operations of the institution since the prior reporting period.​

(ii) A summary of the institution’s investment portfolio, including securities, loans, and other financial instruments held.​

(iii) Information on any regulatory actions, legal proceedings, or other material events that may impact the institution’s financial stability.​

(iv) The institution’s compliance status with relevant financial regulations and guidelines.​

Amendments to the Criminal Code Act:
Amendments to Part VII:

25 - Financial Reporting Fraud
Offence type: Indictable
Penalty: A fine equal to 2 times the amount of tax avoided if applicable; 20 penalty units;
A person or entity commits this offence if they:
(a) Intentionally misrepresents the total deposits received in a Cash Flow Statement to avoid tax liability; or
(b) Falsifies any part of the Financial Reports required under the Taxation Act.

 

[ToadKing]

This needs to be formatted correctly according to the Bill & Resolution Formats

There is also no valid co-sponsor.