- Joined
- Apr 7, 2020
- Messages
- 3,289
- Thread Author
- #1
CONGRESS OF THE
COMMONWEALTH OF REDMONT
A BILL TO
BALANCE THE BUDGET
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 ‘Financially Responsible Act’
(2) This Act shall be enacted immediately upon its signage.
(3) This Act has been authored by xEndeavour
(4) This Act has been co-sponsored by
(5) This Act amends the following acts:
(a) Act of Congress - Taxation Act
2. Reasons and Intent
(1) READ ME. Nobody likes a tax hike. But, for the first time in over five years we are in a fiscally shaky position that demands greater government revenue.
(2) The government now funds expenditures directly from its accounts that were previously sustained through printed currency. As a result, the current position is unsustainable, and substantial remediation is required to bring government outgoings back into balance.
(3) While this bill increases taxes, it is accompanied by wage increases under the Remuneration Act, supporting the growth of the middle class.
(4) Property owners and balance holders over $10,000 can afford to pay a small amount of tax.
PART II — Amendments to the Taxation Act
4 - Taxation Brackets
(1) Taxation brackets shall apply to Corporate and Personal Balance Taxes.
(2) The following bracket amounts are inclusive and shall be taxed at the following rates weekly:
| Taxation Bracket | Taxation Rate (%) |
| $0.00 to $99,999.99 $0.00 to $9,999.99 | 0 |
| $100,000.00 to $199,999.99 $10,000.00 to $199,999.99 | 3 |
| $200,000.00 to $299,999.99 $200,000.00 to $499,999.99 | 4 |
| $300,000.00 - $499,999.99 $500,000.00 to $999,999.99 | 5 |
5 - Financial Institutions Tax
(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.
(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 |
6 - Financial Institution Taxation Exemptions
(1) Deposit-taking financial institutions will be exempt from all balance taxes, as defined in the Banking Act (or succeeding acts).
(a) Exemption takes effect from the point of acceptance and registration from the Department of Commerce.
(b) Exemption may be repealed by the Commerce Secretary or delegate if the institution does not meet the requirements of this Act.
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) 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) 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.
(3) All financial reports must be prepared and submitted by an licensed accountant with their name attached to the document.
(4) Failure to comply with reporting requirements will result in the financial institution surrendering its taxation exemption status until a report is submitted.
8 - Powers of the Department of Commerce
(1) Historical events have proven that strong regulatory powers are necessary for the adequate protection of the depositors of deposit-taking institutions.
(2) These powers are vested in the Department of Commerce to uphold the integrity of financial institution taxation, ensure compliance with regulations, and protect the interests of depositors and the broader financial system.
(3) The Department of Commerce will have the following non-exhaustive powers in relation to regulating financial institution tax obligations:
(a) Audit and Inspection Authority. The Department shall have the authority to conduct regular audits and inspections of the financial records of deposit-taking financial institutions. This includes verifying the accuracy of reported profits and confirming legal compliance.
(b) Exemption Verification. The Department may verify the eligibility of deposit-taking financial institutions for taxation exemptions as outlined in Section 5. This includes assessing whether institutions meet the necessary requirements and, if necessary, revoking exemptions for non-compliance.
(c) Enforcement of Taxation. The Department is empowered to enforce the taxation provisions outlined in Section 7. This involves assessing, collecting, and overseeing the proper payment of monthly taxes by deposit-taking financial institutions.
(d) Investigation of Misrepresentation. In cases where misrepresentation of profits is suspected, the Department has the authority to conduct thorough investigations into the financial records of deposit-taking financial institutions. If intentional misrepresentation is confirmed, the Department may take legal action, including prosecution.
(3) The Department of Commerce will have the following non-exhaustive general powers in relation to regulating financial institutions:
(a) Registration: The Department of Commerce will have the power to assess an institution's eligibility, financial viability, and compliance with regulatory requirements prior to registration as a financial institution.
(b) Deregistration: The Department of Commerce will have the power to deregister financial institutions. This authority is granted to address instances of persistent non-compliance with regulations and or laws. Investigatory and legal due diligence, the best interests of the depositors, and restraint must be considered and applied in exercising deregistration.
(c) Commandeer: In extraordinary situations, the Department of Commerce has the power to commandeer and take temporary control of a financial institution. This authority is reserved for exceptional circumstances, such as insolvency, near insolvency, financial crises, or situations where the institution's continued operation poses a systemic risk to the financial system or depositors.
(i) The DOC reserves the right to refuse to declare any seized, commandeered, or nationalised institution as bankrupt under the Business Structuring Act or any subsequent acts. The DOC may retroactively declare the bankruptcy status of any seized, commandeered, or nationalised institution as void.
(d) Seizure and Sale. The Department of Commerce may consider commercial remedies such as selling a collapsed financial institution (or parts of a collapsed financial institution) to other interested financial institutions/parties. This may only take place when it is in the best interests of the depositors. Additionally, the Department may seize the assets of Directors of the Financial Institutions (with the least required disturbance to their estate) to recover debts.
9 - Deposit Guarantee
(1) The Federal Government will guarantee deposits of up to $100,000 per person, per authorised financial institution.
(2) All registered Financial Institutions are automatically covered under the terms of this deposit guarantee as authorised institutions.
(a) Institutions not compliant with this Act will be deregistered as a financial institution.
(b) Deposits will be covered by the Deposit guarantee for 30 days post-deregistration.
(c) The DOC is able to seize Financial Institution and Director assets to recover the costs to depositors. This process must be done with the least practicable disruption to the estate targeted.
(3) The Deposit Guarantee is Financial Institution Depositor Insurance (FIDI) and is compulsory for the stability of the financial system.
(4) The contributions of Financial Institutions serve to offset past and future payouts, but does not imply the existence of an exhaustive fund.
(5) Once s9(2)(c) has been exhausted, the DOC is pre-authorised to use unappropriated Government funds to satisfy the payment of the Deposit Guarantee to impacted depositors.
10 - Financial Institution Rights
(1) Information shared with regulatory bodies must satisfy a 'need-to-know' principle. For example:
(a) The Department of Commerce does not always need to know the identity of account holders.
(b) The Department of Commerce needs to have a reasonable justification for accessing the data it is requesting (this justification does not have to be shared with the Financial Institution).
(2) The Department of Commerce can only compel a Financial Institution to produce information in the course of its official duties.
(3) The Department of Commerce must treat the data of Financial Institutions as commercial-in-confidence, with the sole exception to this being the usage of strictly necessary data in a public report, and only to the extent required to describe and justify the reasoning behind any regulatory or enforcement action performed by the Department, including those listed in §8 of this Act.
11 - Chestshop Sales Tax
(1) Chestshop Tax percentage: 2%
(2) All Chestshop Tax revenue will be directed to the DCGovernment account.
12 - Pruning Tax
(1) All players who have been inactive for at least 3 consecutive months will have the entirety of their personal balance transferred to the DCGovernment balance.
(2) Upon request, the total of personal funds, excluding taxes, shall be returned to the citizen if they become active once again.
(a) DCGovernment shall be responsible for repaying the citizen these funds.
(3) Pruning Taxation will incur a 10% tax on any returned funds.
(4) No notification shall be required for the disbandment of a sole proprietorship where the owner has been pruned under subsection (1).
13 - Property Tax
(1) Where x is the amount of plots a player owns, and y is the amount taxed per day, property taxes shall be calculated as follows: y = 3x² − 6x + 43
(2) Players shall not be taxed for property tax if they own 3 or fewer plots.
| Number of Plots | Taxation Rate ($ per day) | Amount per week ($) |
|---|---|---|
| 1 | 40.00 | 280.00 |
| 2 | 43.00 | 301.00 |
| 3 | 52.00 | 364.00 |
| 4 | 67.00 | 469.00 |
| 5 | 88.00 | 616.00 |
| 6 | 115.00 | 805.00 |
| 7 | 148.00 | 1036.00 |
| 8 | 187.00 | 1309.00 |
| 9 | 232.00 | 1624.00 |
| 10 | 283.00 | 1981.00 |
| 11 | 340.00 | 2380.00 |
| 12 | 403.00 | 2821.00 |
| 13 | 472.00 | 3304.00 |
| 14 | 547.00 | 3829.00 |
| 15 | 628.00 | 4396.00 |
| 16 | 715.00 | 5005.00 |
| 17 | 808.00 | 5656.00 |
| 18 | 907.00 | 6349.00 |
| 19 | 1012.00 | 7084.00 |
| 20 | 1123.00 | 7861.00 |
| 21 | 1240.00 | 8680.00 |
| 22 | 1363.00 | 9541.00 |
| 23 | 1492.00 | 10444.00 |
| 24 | 1627.00 | 11389.00 |
| 25 | 1768.00 | 12376.00 |
| 26 | 1915.00 | 13405.00 |
| 27 | 2068.00 | 14476.00 |
| 28 | 2227.00 | 15589.00 |
| 29 | 2392.00 | 16744.00 |
| 30 | 2563.00 | 17941.00 |
| Number of Plots | Taxation Rate ($ per day) | Amount per week ($) |
| 1 | 0 | 0 |
| 2 | 0 | 0 |
| 3 | 0 | 0 |
| 4 | 16 | 112 |
| 5 | 32.50 | 227.50 |
| 6 | 54 | 378 |
| 7 | 80.50 | 563.50 |
| 8 | 112 | 784 |
| 9 | 148.50 | 1039.50 |
| 10 | 190 | 1330 |
| 11 | 236.50 | 1655.50 |
| 12 | 288 | 2016 |
| 13 | 344.50 | 2411.50 |
| 14 | 406 | 2842 |
| 15 | 472.50 | 3307.50 |
| 16 | 544 | 3808 |
| 17 | 620.50 | 4343.50 |
| 18 | 702 | 4914 |
| 19 | 788.50 | 5519.50 |
| 20 | 880 | 6160 |
| 21 | 976.50 | 6835.5 |
| 22 | 1078 | 7546 |
| 23 | 1184.50 | 8291.50 |
| 24 | 1296 | 9072 |
| 25 | 1412.50 | 9887.50 |
| 26 | 1534 | 10738 |
| 27 | 1660.50 | 11623.50 |
| 28 | 1792 | 12544 |
| 29 | 1928.50 | 13499.50 |
| 30 | 2070 | 14490 |
14 - Terms of Property Taxation:
(1) Merged plots shall be counted as several plots and will be taxed as such.
(2) Plot taxes apply to all plots, unless otherwise provided by Local Governments where the plot is located.
(a) Only Governments which are recognized by the Commonwealth of Redmont can be considered a Local Government.
(3) Towns may request for the Federal Government to conduct plot taxation, where the Federal Government will then provide the taxed amount to the Town on the first day of every month.[/spoiler]
