Bill: Draft Bank Profit Fix Act

[Twiscet]

A
BILL
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 Profit Fix Act'

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

(3) This Act has been authored by Omegabiebel.

(4) This Act has been co-sponsored by Omegabiebel.

2 - Reasons

(1) The definition of profit needs updating to be more logical and in line with reality

(2) The definition needs updating since time is a constant, not a loose collection of 30/31 day blocks

(3) The new profit definition makes accounting tricks (or just straight fraud) such as spreading losses over months to reduce tax liabilities moot and removes serious ambiguity

3 - Amendments
(1) The Taxation Act will be amended as follows:
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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 to the Department of Commerce, the entity will be liable for prosecution.
(b) Profits shall be calculated as the earnings the financial institution keeps after all operating costs are paid. Profit shall be calculated from the date of the last report or, in the first report, the first day of trading.
(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.
(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:
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4 - Transition
(1) This Act shall apply to all Financial Reports covering reporting periods beginning on or after November 2025.
(a) If a Financial Report covering November 2025 or any subsequent period has already been filed and taxes paid prior to the enactment of this Act, the Financial Institution may file an amended report for such period(s) within ten (10) days of enactment to apply the loss carry-forward provisions in Section 7, and any overpaid taxes shall be credited against future tax obligations (but no cash refunds shall be given)
(2) No Refunds
(a) No refund, credit, rebate, or other payment shall be given, paid, or ordered for any taxes paid for reporting periods ending before November 2025.
(b) No person or entity shall have any right, claim, or cause of action to seek a refund, credit, or other compensation for taxes paid for reporting periods ending before November 2025, whether through an administrative process, judicial action, or by any other means.
(c) Any court action seeking a refund of taxes paid for reporting periods ending before November 2025 shall be dismissed with prejudice as barred by this section.
(4) If this Act is enacted after the November 2025 Financial Report has been submitted and taxes paid:
(a) The Financial Institution may file an amended November 2025 report applying loss carry-forward within ten (10) days of enactment;
(b) Any overpayment resulting from the amended report shall be credited against December 2025 tax obligations (or subsequent months if the credit exceeds December taxes);
(c) No cash refund shall be given for November 2025 overpayments; credits only.
(5) The amendments made by this Act constitute a new methodology for calculating profit and do not constitute a correction or clarification of prior law.
(6) If any provision of this Act is held invalid and struck down, the remainder shall remain in full force and effect.