Repealed Financial Institutions Tax Act (Revised)

[HKE101]

A
BILL
TO


Reduce the Burden of Corporate Tax on Financial Institutions


The people of Democracy Craft, 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 “Financial Institutions Tax Act”.
(2) This Act shall be enacted immediately upon its signage.
(3) This Act is proposed by Representative Hong_Kong_101
(4) This Act is co-sponsored by Senator Overloard of Peonys

2 - Reasons
(1) Financial Institutions occupy an important place in the economy of Redmont, providing funds to players and businesses to engage in commerce, and providing safe places for citizens to store their hard-earned money.
(2) Due to the way they do business, as well as competition within the financial sector, banks are generally less profitable than other businesses such as supply companies, and taxing them on their company balances, which tend to be larger than those of other companies due to their role in the economy, is excessively burdensome. The way in which balances and not profits are taxed puts a greater burden on financial institutions simply because of the requirements of the economic sector in which they operate.
(3) The manner in which corporate taxes are structured in Redmont is not reflective of the manner in which corporate taxes are structured in real life.
(4) Due to the manner in which wages and UBI have been reduced, as well as future planned government wage reforms, the government’s expenses have been significantly reduced, eliminating the need for a large amount of taxation. Taxation should only be the minimum required to fund government operations, and increasing government revenue without the requirements of corresponding expenses should not be considered a goal.
(5) The government has a responsibility to promote the functioning of the economy in Redmont, and part of that responsibility is promoting economic diversity. This Act does not attempt to provide preferential treatment for a sector of the economy, but rather to rectify a particular burden placed on that sector of the economy.
(6) This bill was passed in the previous session of Congress, but was vetoed due to concerns that are now addressed in the revised version of the Act.

3 - Section 1: Taxation of Financial Institutions
(1) A deposit-taking financial institution is defined as a financial institution that takes deposits of money from other legal entities, such as companies and private citizens, in order to profitably invest them and return a portion of the profit to its depositors.
(2) Deposit-taking financial institutions will be exempt from all balance taxes. Any previously passed law or order in contradiction to this provision will become invalid from the date of this Act’s promulgation.
(3) Deposit-taking financial institutions must keep detailed accounts of their investment revenue and obligations to their depositors. Financial institutions must report their net revenue and obligations to the depositors monthly to the Department of Commerce. The Department of Commerce will notify financial institutions within the first seven days of the fiscal month. The financial institutions have until the last five days to provide the report to the Department of Commerce.
(a) Should deposit-taking financial institutions purposefully misrepresent their profits in reports to the Department of Commerce, they may be prosecuted for Tax Evasion in accordance with the Taxation Act.
(b) Profit shall be the earnings the financial institution keeps after all the costs are paid. Profit shall be calculated from the date of the last report or, in the first report, either from the date this bill is signed or the date of the institution's founding, whichever may be later.
(4) Deposit-taking financial institutions will be taxed on their monthly reported profit as specified in section 3 of this act at a rate of 10%. According to this tax, the Department of Commerce will be obligated to send them a notice of the amount they must pay the government at the end of every month, 72 hours after the report. To pay this tax, deposit-taking financial institutions must pay the amount they owe to the DCGovernment in-game balance, and provide proof of payment to the Department of Commerce.
(a) From the time deposit-taking financial institutions receive notice from the Department of Commerce of the amount of tax they are required to pay for the previous month, they will be required to pay said tax within 7 days. Should they not pay the tax within this timeframe, they will owe an extra $1000 in taxes for every day past the due date.
(b) The Department of Legal Affairs may prosecute deposit-taking financial institutions and seek fines of up to $15,000, should a deposit-taking financial institution fail to pay its monthly tax within 28 days after being given notice by the Department of Commerce as specified in (4).
(5) Any provisions of any previously passed law or order in conflict with this Act will be considered invalid upon the promulgation of this Act.

4 - Guarantee
(1) The Federal Government will guarantee deposits of up to $50,000 per person across authorised financial institutions.
(2) All registered Financial Institutions are automatically covered under the terms of this deposit guarantee as authorised institutions.
(a) Institutions not suitable for insurance will be deregistered by the DOC 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/Owner assets to recover the costs to depositors. This process must be done with the least practicable disruption to the estate targeted.

 

[Derpy_Bird]

Presidential Assent

This bill has been granted assent and is hereby signed into law.

 

[XaviersKarma]

House Vote: 8-2-1
Senate Vote: 5-0-0

A
BILL
To

Better clarify and remove tax loopholes for banks.

The people of Democracy Craft, 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 ‘Financial Institutions Tax Act Amendment'
(2) This Act shall be enacted for new companies immediately.
(3) This bill is authored by Rep. XavierKarma
(4) The Act has been co-sponsored by: Rep. TheReal42person

2 - Reasons
(1) To ensure that banks and other financial institutions are not a tax haven.
(2) To ensure transparency and to allow the Department of Commerce, together with the Commonwealth Reserve Bank to have adequate information about depositors, etc, to be able to handle financial institution shutdowns.

3 - Changes

(1) Section 3 Part 3 shall now read:

(3) Deposit-taking financial institutions will be required to keep detailed accounts of their profits revenue from investments as well as their obligations to their depositors. They will be required to report their net profit revenue as well as their obligations to the depositors at the end of every month to the Department of Commerce within the last 5 days of a month. as specified in (a).

(a) Deposit-taking financial institutions will calculate monthly net profit by adding up their total revenue for that month, excluding unrealized gains on investments, and subtracting compensation paid to employees, interest paid on accounts, and the cost of producing any other product or service sold or provided by the institution. They will report net profit calculated thus through a DOC ticket in Discord.

(b) (a) Should deposit-taking financial institutions purposefully misrepresent their profits revenue in reports to the Department of Commerce, they may be prosecuted for Tax Evasion in accordance with the Taxation Act.

(b) Revenue shall be calculated as any income from investments, service fees, and any other streams of income. The revenue shall be calculated from the date of the last report, or in the instance of the first report, either from the date this bill is signed or the date of the founding of the institution, whichever may be later.

(2) Section 3 Part 4 shall now read:

(4) Deposit-taking financial institutions will be taxed on their monthly reported profit revenue as specified in (3) at a rate of 25% 15%. The Department of Commerce will be obligated to send them a notice of the amount that they are obligated to pay the government at the end of every month according to this tax no later than 72 hours after the report. In order to pay this tax, deposit-taking financial institutions will be required to pay the amount they owe to the DCGovernment in-game balance, and open a DOC ticket to inform the Department that they have paid their tax along with proof, such as a screenshot.
(a) From the time deposit-taking financial institutions receive notice from the Department of Commerce of the amount of tax they are required to pay for the previous month, they will be required to pay said tax within 7 days. Should they not pay the tax within this timeframe, they will owe an extra $1000 in taxes for every day past the due date.
(b) The Department of Legal Affairs may prosecute deposit-taking financial institutions and seek fines of up to $15,000, should a deposit-taking financial institution fail to pay its monthly tax within 28 days after being given notice by the Department of Commerce as specified in (4).

 

[Twixted]

Presidential Assent

This bill has received presidential assent and is hereby signed into law.

 

[nanicholls]

A BILL To
Amend Financial Institution Taxation and 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 'Safer Banking Act.'
(2) This Act shall be enacted immediately upon its signage.
(3) This Act has been authored by: His Majesty xEndeavour
(4) This Act has been co-sponsored by: Rep. Nanicholls

2 - Reasons (1) To guarantee the security of Depositor money in registered financial institutions.
(2) To more closely monitor financial institutions to prevent instances such as the Tello collapse and JPMorgan collapse.
(3) To simplify the insurance program and to make rules and responsibilities clear under the law.

3 - Rescind
(1) The following acts are rescinded: Act of Congress - Federal Deposit Insurance Program Act
(2) s16 and s10(m) is rescinded from Act of Congress - Commonwealth Reserve Act 3 - Deposit

Guarantee
(1) The Federal Government will guarantee deposits of up to $50,000 per person across authorised financial institutions.
(2) All registered Financial Institutions are automatically covered under the terms of this deposit guarantee as authorised institutions.
(a) Institutions not suitable for insurance will be deregistered by the DOC 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/Owner assets to recover the costs to depositors. This process must be done with the least practicable disruption to the estate targeted.

 

[LilDigiVert]

Presidential Assent

This bill has been granted assent and is hereby signed into law.

 

[GoldBlooded]

House: 8-1-1
Senate: 4-1-0

A
BILL
To

Amend FITA​

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 'Do It Yourself Act.'
(2) This Act shall be enacted immediately upon its signage.
(3) This Act has been authored by: Sen. Nacholebraa
(4) This Act has been co-sponsored by: Sen. Nacholebraa

2 - Reasons
(1) In good faith, the government should have to notify financial institutions that tax obligations are owed. Private businesses have a lot going on; if the government fails to provide notice, it doesn't need the money.
(2) FITA [Link]

3 - Amend
(1) Amendment to Section 3(3) will change from:

(3) Deposit-taking financial institutions will be required to keep detailed accounts of their revenue from investments as well as their obligations to their depositors. They will be required to report their net revenue as well as their obligations to the depositors at the end of every month to the Department of Commerce within the last 5 days of a month.

To:

(3) Deposit-taking financial institutions must keep detailed accounts of their investment revenue and obligations to their depositors. Financial institutions must report their net revenue and obligations to the depositors monthly to the Department of Commerce. The Department of Commerce will notify financial institutions within the first seven days of the fiscal month. The financial institutions have until the last five days to provide the report to the Department of Commerce.

4 - Amend
(1) Amendment to Section 3(3.b) will change from:

(b) Revenue shall be calculated as any income from investments, service fees, and any other streams of income. The revenue shall be calculated from the date of the last report, or in the instance of the first report, either from the date this bill is signed or the date of the founding of the institution, whichever may be later.

To:

(b) Profit shall be the earnings the financial institution keeps after all the costs are paid. Profit shall be calculated from the date of the last report or, in the first report, either from the date this bill is signed or the date of the institution's founding, whichever may be later.

5 - Amend
(1) Amendment to Section 3(4) will change from:

(4) Deposit-taking financial institutions will be taxed on their monthly reported revenue as specified in (3) at a rate of 15%. The Department of Commerce will be obligated to send them a notice of the amount that they are obligated to pay the government at the end of every month according to this tax no later than 72 hours after the repor. In order to pay this tax, deposit-taking financial institutions will be required to pay the amount they owe to the DCGovernment ingame balance, and open a DOC ticket to inform the Department that they have paid their tax along with proof, such as a screenshot.

To:

(4) Deposit-taking financial institutions will be taxed on their monthly reported profit as specified in section 3 of this act at a rate of 10%. According to this tax, the Department of Commerce will be obligated to send them a notice of the amount they must pay the government at the end of every month, 72 hours after the report. To pay this tax, deposit-taking financial institutions must pay the amount they owe to the DCGovernment in-game balance, and provide proof of payment to the Department of Commerce.

 

[xLayzur]

Presidential Assent

This bill has been granted assent and is hereby signed into law.