Bill: Pending Balance Tax and Deductions Act

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Saarthigaming

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Department of Internal Development
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Saarthigaming
Saarthigaming
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Section 1. Short Title

(1) This Act is the Balance Tax and Deductions Act.

Section 2. Commencement

(1) This Act shall come into effect upon passage.

Section 3. Purpose and Reasoning

(1) To establish a stable revenue stream for the government through a balance tax system, ensuring fair contribution from all citizens while promoting market activity and incentivizing spending.

Section 4. Definitions

(1) A "Balance" is defined as the total wealth held by a citizen, including assets in private banks, government central bank and personal balance.
(2) "Eligible Business Expenses" are defined as the costs incurred in the regular operation of a business, including but not limited to employee salaries, office supplies, and other operational costs.
(3) "Capital Investments" are defined as expenditures related to improving or expanding a business’s infrastructure, including purchasing new properties, renovating stores, and investing in technology.
(4) "Training Expenses" are defined as costs related to the education and professional development of a company’s employees.
(5) “Total Liquid Capital” refers to the total amount of cash or cash-equivalent assets that a Private Bank has available at a given moment, not including citizens deposits.
(6) “Inactive player” refers to players who hold a /bcseen of less than 6 hours unless granted an exception by the Department of Economy.

Section 5. Flat Tax

(1) A flat tax system shall be implemented as follows:
(a) A tax rate of 1.25% shall be applied to all inactive player balances
(b)(2) The maximum tax amount any player can be required to pay monthly is capped at 30,000 KR, per player.
(3) Players with a balance of less than 2,000 KR shall be exempt from this tax.
(4) players with a /bcseen of more than 6 hours will have a 0% tax rate
(5) Taxes will be collected automatically every first day of the month.

Section 6. Tax Deductions

(1) Taxpayers may receive deductions of up to 30% on their due tax for eligible business expenses and investments.
(2) Mayors may receive deductions of up to 100% on their due tax for eligible expenses and investments in their relevant cities. This may include newly built infrastructures, events, and property resales.
(3) Eligible deductions include:
(a) Business Expenses, as defined in Section 4(2).
(b) Capital Investments, as defined in Section 4(3).
(c) Training Expenses, as defined in Section 4(4).
(4) Business owners seeking deductions must report their expenditures through a dedicated forum thread within the Department of Economy’s section.
(5) Reports must include detailed documentation of contracts, receipts, and other relevant evidence to support the claim for deductions.
(6) Analysts from the Department of Economy will review submissions to ensure eligibility criteria are met. Approved deductions will be applied to the taxpayer's due tax.

Section 7. Tax Evasion and Private Banks

To prevent tax evasion, the following regulations are imposed:
(1) Private Banks must maintain transparency with the Department of Economy by submitting monthly reports on deposit and withdrawal activities. The Department of Economy will provide a template to be filled in by the banks.
(2) For the purpose of tax assessment, any transfer of wealth to a private bank shall be treated as part of the citizen’s taxable balance, unless the funds were deposited for a minimum of 30 days.
(3) Citizens must report all significant transfers of wealth (above 100,000 KR) into Private Banks to the Department of Economy within 24 hours of the transfer. Deposits must not exceed the Total Liquid Capital available to the Private Bank at the time of the deposit.
(4) Private banks that fail to comply with the reporting requirements or accept deposits beyond their Total Liquid Capital will be subject to fines up to 100,000 KR or suspension of their operating license. Repeated offenses will result in the Private Bank being permanently closed, and the owner shall be prohibited from operating any bank in the future.
(5) Any deposit made by a citizen that is not reported as required by this Act shall be seized by the Department of Economy. The seized funds will be held until the citizen complies with the reporting requirements. Repeated non-compliance will result in fines up to 30% of the unreported deposits, as determined by the Department of Economy.
 
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