Real42
Member
- Joined
- Mar 24, 2025
- Messages
- 36
- Thread Author
- #1
A
Bill
To
Lay taxes to fund the Kingdom of Alexandria
Bill
To
Lay taxes to fund the Kingdom of Alexandria
1 - Short Title and Enactment
(1) This Act may be cited as the ‘Revenue Act.'
(2) This Act may be numbered as P.B.00-009.
(3) This Act shall be enacted on May 15, 2025.
(4) This Act has been authored by Deputy Prime Minister TheReal42Person.
(5) This Act has been co-sponsored by Minister winterwolf.
2 - Reasons
(1) There must be a way for the newly created country to earn revenue.
(2) In order to fund government programs, pay employees, etc., the government must have money to do so.
(3) Tax rates will be higher at the start in order to start funding.
(4) Note: This act is heavily based on Redmont’s Taxation Act.
3 - List of Taxes
(1) The following taxes shall be imposed by the Kingdom of Alexandria:
(a) Personal Balance Tax
(b) Corporate Balance Tax
(c) Chestshop Sales Tax
(d) Financial Institution Tax
(e) Property Tax
(f) Tariffs
(2) The Ministry of Trade & Finance has the power to collect taxes and enforce laws relating to them.
4 - Balance Taxes
(1) All personal and corporate balances shall be taxed at a flat rate of 1% weekly.
5 - Chestshop Sales Tax (Original: xLayzur, 8/18/2023)
(1) The Chestshop Sales Tax percentage shall be 0%.
(2) All Chestshop Sales Tax revenue shall be directed to the SCGovernment account.
(3) Example (2% rate): Player A sells 1 diamond for £100, Player B buys 1 Diamond for £100, Player A receives £98 and the £2 is given to the DCGovernment.
6 - Financial Institution Tax (Original: xEndeavour, 12/30/2023)
(1) Deposit-taking financial institutions will be taxed on their monthly reported profit.
(a) This tax will be fined by the Ministry of Trade & Finance.
(b) Taxation is due by the end of the second week of the following month.
(2) The Financial Institution Taxation Rate shall be set to 10% of the institution's profits, monthly.
7 - Financial Records and Reporting (Original: xEndeavour, 12/30/2023)
(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 Ministry of Trade & Finance, 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.
(2) Deposit-taking financial institutions are required to report to the Ministry of Trade & Finance by the end of the first week of the succeeding month:
FINANCIAL REPORT
(a) Profits.
(b) Total assets and liabilities as of the last day of the preceding month.
(c) Any significant changes in the financial condition or operations of the institution.
(d) A summary of the institution's investment portfolio, including details on securities, loans, and other financial instruments held.
(e) Information on any regulatory actions, legal proceedings, or other material events that may impact the institution's financial stability.
(f) Compliance status with relevant financial regulations and guidelines.
(3) 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 Ministry of Trade & Finance (Original: xEndeavour, 12/30/2023)
(1) Strong regulatory powers are necessary for the adequate protection of the depositors of deposit-taking institutions.
(2) These powers are vested in the Ministry of Trade & Finance 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 Ministry of Trade & Finance will have the following non-exhaustive powers in relation to regulating financial institution tax obligations:
(a) Audit and Inspection Authority. The Ministry 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 Ministry may verify the eligibility of deposit-taking financial institutions for taxation exemptions as outlined in Section 11. This includes assessing whether institutions meet the necessary requirements and, if necessary, revoking exemptions for non-compliance.
(c) Enforcement of Taxation. The Ministry is empowered to enforce the taxation provisions outlined in Section 6. 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 Ministry has the authority to conduct thorough investigations into the financial records of deposit-taking financial institutions. If intentional misrepresentation is confirmed, the Ministry may take legal action, including prosecution.
(4) The Ministry of Trade & Finance will have the following non-exhaustive general powers in relation to regulating financial institutions:
(a) Registration: The Ministry of Trade & Finance 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 Ministry of Trade & Finance 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 Ministry of Trade & Finance 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.
(d) Seizure and Sale. The Ministry of Trade & Finance may consider commercial remedies such as selling a collapsed bank (or parts of a collapsed bank) to other interested financial institutions/parties. This may only take place when it is in the best interests of the depositors. Additionally, the Ministry may seize the assets of Directors/Owners of the Financial Institutions (with the least required disturbance to their estate) to recover debts.
9 - Financial Institution Rights (Original: xEndeavour, 12/30/2023)
(1) Information shared with regulatory bodies must satisfy a 'need-to-know' principle. For example:
(a) The Ministry of Trade & Finance does not always need to know the identity of account holders.
(b) The Ministry of Trade & Finance 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 Ministry of Trade & Finance can only compel a Financial Institution to produce information in the course of its official duties.
(3) The Ministry of Trade & Finance must treat the data of Financial Institutions as commercial-in-confidence.
10 - Property Tax
(1) The Ministry of Development, in conjunction with Staff, shall assess and set the base value of each plot in the Kingdom of Alexandria.
(a) The base value shall not include anything built or stored on the property.
(b) A player may appeal their property valuation to the Ministry of Development through a ticket. A third-party assessor shall be appointed, agreed on by both the MoD and the player in question, to evaluate the plot's base value.
(i) If the player still disagrees with the value of the plot, they may appeal it in court.
(2) The Property Tax shall be set at the following rates:
(a) Residential Plots: 2.5% of the plot’s base value per week.
(b) Commercial Plots: 5% of the plot’s base value per week.
(c) Other Plots (not listed above): 5% of the plot’s base value per week.
11 - Tax Exemptions
(1) Personal Balance Taxes may be exempted under the following circumstances:
(a) New Player. Players with under 48 hours of playtime and have joined in the past two weeks shall be exempted from paying Personal Balance Taxes.
(i) This shall take effect on July 1, 2025. Until then, all players must pay full Personal Balance Taxes.
(2) Corporate Balance Taxes may be exempted under the following circumstances:
(a) Financial Institution. If an in-game business is registered by the Ministry of Trade & Finance as a financial institution, it shall be exempted from the Corporate Balance Tax.
(b) Charitable Institution. If an in-game business is registered by the Ministry of Trade & Finance as a charity, non-profit, or educational institution, it shall be exempted from the Corporate Balance Tax.
(i) Educational Institutions shall be defined by the Ministry of Welfare.
(c) Government Institution. If an in-game business is funded or maintained by a government agency, it shall be exempted from the Corporate Balance Tax.
12 - Tariffs
(1) The Minister of Trade and Finance of Alexandria has the power to set tariffs on foreign goods imported to the Kingdom.
(a) Tariffs must be a percentage and will be charged by the last Consumer Price Index prices.
(b) Tariffs are paid by the importing player to the SCGovernment account.
(2) For example, if a 25% tariff on Diamonds is set and a stack of Diamonds sells for £28 in Alexandria, a tariff of £7 will be charged.
(3) Tariffs may not exceed 200% and may not be less than 0%.
Last edited:
