Amendment to Title 7 Package (630)

## Act 1 – The Kodiak Revenue Directorate Act

*An act to establish a centralized organization for the implementation and enforcement of Title 7, Acts 2, 3, and 4.*

### Article 1 – Establishment and Management

1.1 - Establishes the Kodiak Revenue Directorate (KRD) in the capital city of Rykkburgh.

1.2 - The KRD will implement and enforce Acts 2 through 4

1.3 - The KRD will be afforded enforcement powers as detailed in Article 3

1.4 - The day to day activities of the KRD will be directed by a 9 person board

1.4.1 - The Minister of Revenue and Treasury chairs the board

1.4.2 - A CEO is selected by the board

1.4.3 - The Minister may select appointments to fill vacancies to be approved by the board

1.4.4 - The Minister retains the right of veto over board appointments put forward by internal selection

1.4.5 - Should a board position remain vacant for 3 months, whether by lack of suitable candidates or Minister Veto, the CEO may appoint an interim board member to allow for continual function of the KRD.
### Article 2 – Obligations of Individuals, Businesses, & Corporations

2.1 - Financial Year (FY) Definition: The FY begins at 00:00 July 1st, and ends at 23:59 June 30th.

2.2 - Individual Definition: A person who has resided and earned taxable income within the Kodiak Republic for any amount of time within a financial year.

2.2.1 - An Individual is obligated to report all taxable income to the KRD within 3 months of the end of the FY (EOFY), by 23:59 September 30th.

2.2.2 - The document used for Individuals who are not married or are not residing with a common law spouse is the KRD-I1.

2.2.3 - The document used for Individuals who are married or are residing with a common law spouse is the KRD-I2.

2.2.4 - It is the responsibility of an Individual to ensure reported income is accurate and truthful.

2.2.5 - A qualified tax agent may be employed by an Individual to assist with reporting income on their behalf. Doing so does not absolve an Individual of the responsibility outlined in 2.2.4.

2.2.6 - A tax agent employed by an Individual has an obligation to submit the relevant documents in good faith and not submit documents that are inaccurate or misleading in an effort to assist an Individual to contribute less than they are required to.

2.3 - Business Definition: An enterprise that provides goods or services in return for payment (payment may be made in currencies other than Kodiak florins, and includes e-commerce), AND Has less than 200 employees, AND operates in less than 5 unique locations of which at least 1 is within the Kodiak Republic

2.3.1 - A Business is obligated to report all taxable revenue to the KRD within 6 months of the EOFY, by 23:59 December 31st.

2.3.2 - The document used by Businesses with less than 50 employees, OR only 1 unique operating location, OR having revenue less than ₣100,000 per FY is the KRD-B1

2.3.3 - The document used by Businesses with 51 – 200 employees, OR having multiple unique operating locations, OR having revenue in excess of ₣100,000 per FY is the KRD-B2

2.3.4 - The document used by Businesses who fall outside of 2.3.2 AND 2.3.3, but do not meet the definition of a Corporation in 2.4 is the KRD-B3

2.3.3 - A Business is obligated to have a designated Individual assume overall responsibility for reporting. The Individual may be the Owner, the Chairperson of a Board, or an Employee employed directly for this purpose. This Individual is henceforth referred to as the Reporting Officer (RO)

2.3.4 - It is the responsibility of the RO to ensure reported revenue is accurate and truthful. To assist in the execution of their responsibilities, they are afforded the right to request any and all documentation they require from the Business.

2.3.5 - A RO, authorized by the Business, may engage a tax agent(s) to assist with reporting on their behalf. Doing so does not absolve the RO of their responsibility in 2.3.4.

2.3.6 - A tax agent employed by an RO on behalf of a Business has an obligation to submit the relevant documents in good faith and not submit documents that are inaccurate or misleading in an effort to assist a Business to contribute less than they are required to.

2.4 - Corporation Definition: An enterprise that provides goods or services in return for payment (payment may be made in currencies other than Kodiak florins, and includes e-commerce), AND has more than 200 employees, AND operates in 5 or more unique locations of which at least 1 is within the Kodiak Republic

2.4.1 - A Corporation is obligated to report all taxable revenue to the KRD within 11 months of the EOFY, by 23:59 May 31st.

2.4.2 - The document used by Corporations with between 200 – 500 employees, OR only 1 unique operating location, OR having revenue less than ₣1,000,000 per FY is the KRD-C1

2.4.3 - The document used by Corporations with over 500 employess, OR having multiple unique operating locations, OR having revenue in excess of ₣100,000,000 per FY is the KRD-C2

2.4.4 - A Corporation is obligated to have a designated Individual assume overall responsibility for reporting. The Individual may be the Owner, the Chairperson of a Board, or an Employee employed directly for this purpose. This Individual is henceforth referred to as the Reporting Officer (RO)

2.4.5 - It is the responsibility of the RO to ensure reported revenue is accurate and truthful. To assist in the execution of their responsibilities, they are afforded the right to request any and all documentation they require from the Corporation.

2.3.5 - A RO, authorized by the Corporation, may engage a tax agent(s) to assist with reporting on their behalf. Doing so does not absolve the RO of their responsibility in 2.3.4.
2.3.6 - A tax agent employed by an RO on behalf of a Corporation has an obligation to submit the relevant documents in good faith and not submit documents that are inaccurate or misleading in an effort to assist a Corporation to contribute less than they are required to.

### Article 3 – Penalties

3.1 - The KRD’s main method of enforcement will be in the form of fines. Repeated or egregious offences may be referred to the Chief Justice for consideration of criminal charges.

3.2 - Offence Definition: A breach of obligation or responsibility per Title 7. An Offender can have multiple First Offences, as long as all Offences are unique.

3.3.1 - Penalty Unit Definition for an Individual or Reporting Officer: 1% of the Offender’s Annual Income, calculated by the median of the last 3 financial years where applicable. Where not applicable, such as an immigrant newly entering the work force, the Minister of Revenue and Treasury will make a judgement taking into consideration previous years where applicable , the income of peers, savings, and other streams of income of the Offender.

3.3.2 - For a first offence where there is reasonable doubt that the offence was made ‘in Bad Faith’, the Offender shall be fined 0.5 Penalty Units.

3.3.3 - For a second offence, or a first offence where there is reasonable doubt that the offence was made ‘in Good Faith’, the Offender shall be fined 2 Penalty Units

3.3.4 - For a third offence, the Offender shall be fined 10 Penalty Units.

3.3.5 - For any additional offences, or offences in excess of ₣50,000, Referral of Offender to Chief Justice for consideration of further fines or arrest.

3.4.1 - Penalty Unit Definition for a Business of Corporation: 3% of the Offender’s Annual Revenue, calculated by the mean of the last 7 financial years where applicable. Where not applicable, such as the creation of a new Business or Corporation, the Minister of Revenue and Treasury will make a judgement taking into consideration previous years where applicable , the revenue of competitors within the same field, and other streams of revenue of the Offender.

3.4.2 - For a first offence where there is reasonable doubt that the offence was made ‘in Bad Faith’, the Offender shall be fine 0.5 Penalty Units. This is in addition to the individual penalty against the RO in 3.3.2.

3.4.3 - For a second offence, or a first offence where there is reasonable doubt that the offence was made ‘in Good Faith’, the Offender shall be fined 2 Penalty Units. This is in addition to the individual penalty against the RO in 3.3.3.

3.4.4 - For a third offence, the Offender shall be fined 10 Penalty Units. This is in addition to the individual penalty against the RO in : 3.3.4

3.4.5 - For any additional offences, or offences in excess of ₣500,000, Referral of Offender to Chief Justice for consideration of further fines or arrest.
## Act 2 - The Individual Income Tax Act

*An act to fund government expenditure from individual revenues.*

### Article 1 - The Income Tax

1.1 - Creates a progressive tax on all earnings by citizens of the Republic set at the median annual tax rate of 33%, and sets Income Tax Brackets as follows:

1.2 – The first ₣15,000 of Income shall be tax free

1.2 - ₣15,000 - ₣30,000 shall be taxed at 18%

1.3 - ₣30,000 - ₣60,000 shall be taxed at 33%

1.4 - ₣60,000 - ₣120,000 shall be taxed at 45%

1.5 - ₣120,000 and over shall be taxed at 60%

### Article 2 - The Capital Gains Tax

2.1 - Creates a flat tax on all capital gains by citizens of the Republic set at an annual rate of 7%.

## Act 3 - The Commodity Tax Act

*An act to fund government expenditure and exert market controls.*
Enacted during the Great Interregnum

### Article 1 - The Property Tax

1.1 - Creates a flat tax on all private landed property, set at an annual rate of 6% of the assessed total improved value.

### Article 2 - The Petroleum Tax

2.1 - Creates a flat tax on the sale of petroleum, gasoline, butane, diesel, and other oil based fuels, set at a rate of 5% of the initial untaxed sale price.

### Article 3 - The Point of Sales Tax

3.1 - Creates a flat tax on the sale of all goods and services, set at a rate of 7% of the initial untaxed sale price and collected by the seller at the point of sale.

## Act 4 - The Corporation Tax Act

*An act to fund government expenditure.*
Enacted during the Great Interregnum

### Article 1 - The Corporation Tax

1.1 - Creates a flat tax on the total reported commercial profit of an organisation or commercial enterprise with sales in the Kodiak Republic

1.2 - The Corporation Tax Rate shall be set at 10% of the total reported commercial profits.

*Authored by Edward Harders, Minister of Revenue and Treasury*