Ransenar Royal Decree IV

Economy of Ransenar

Palace of Termarth
Subject	Economy and finance
Decreed by	Queen Salome I Regent: Ruadh Aldric
Extent	Kingdom of Ransenar
Royal Assent	25.IX.1673 AN
Commencement	25.IX.1673 AN

RD-IV, or Ransenari Royal Decree IV, is the fourth royal decree issued by the Queen of Ransenar, in 25.IX.1673 AN. It was issued from the Palace of Termarth in Goldfield, Ransenar.

This Royal Decree provides for the creation of government bodies to regulate the Ransenari economy and facilitate economic development and growth.

Countersignature

RD-I was countersigned by the Regent and the Lord High Steward.

Regent and Lord Protector

• Regent Ruadh Aldric

Transitional Government

• Lord Chief Steward Sean O'Callaghan
• Minister of Trade and Finance Soroush Karimi

Text

WHEREAS We wish to bring prosperity to our Beloved People of Ransenar, so that they may enjoy the fruits of their labor, their economic liberties, and ensure that these can be passed down to future generations;

WHEREAS We wish to build an economy that can provide an adequate living for all of the People of Ransenar, so that they may be free from poverty, want, and destitution;

LET IT THEREFORE BE KNOWN that We hereby provide for the rules, regulations, and limits on the Economy of the Kingdom of Ransenar as follows:

ARTICLE I. The Currency of the Kingdom of Ransenar.

1. The currency of the Kingdom of Ransenar shall be issued by the Bank of Ransenar, through the Royal Mint of Ransenar.

2. The currency issued by the Bank of Ransenar shall be the national currency, and shall be legal tender for all payments within the territory of the Kingdom of Ransenar.

3. The Natopian Natopo and the Sovereign Confederation's Avak shall also be legal tender for all payments within the territory of the Kingdom of Ransenar.

4. The currency of the Kingdom of Ransenar shall be the Ransenari Erb. Its symbol shall be R€.

5. One Ransenari Erb shall be subdivided into 100 Sovereigns (Srs).

6. Coins shall be struck for the following denominations of Sovereigns: 1 Sovereign, 5 Sovereigns, 10 Sovereigns, 25 Sovereigns, and 50 Sovereigns.

7. There shall be a limited government-owned company Royal Mint Ltd established under Her Majesty’s Treasury and shall be granted exclusive contract to produce all the coins and paper currency for the Kingdom of Ransenar.

8. The Bank of Ransenar shall handle the national monetary or financial stability and the national asset purchase facility.

ARTICLE II. Her Majesty's Treasury, the Ministry of Economy and Finance.

1. Her Majesty’s Treasury, also known as the Ministry of Economy and Finance, shall be responsible for all matters of trade and economics not explicitly or implicitly assigned to other government agencies, departments or bodies by law.

2. The Ministry of Economy and Finance shall be headed by a Minister of Economy and Finance, and shall administer duties concerning commerce, trade, industry, trade relations, trade negotiations, overall management and coordination of trade negotiations, foreign investment, companies of medium standing, policies on the research and development of industrial technology, and energy and underground resources.

3. The Ministry of Economy and Finance shall have two Vice Ministers, with one Vice Minister being specifically in charge of affairs concerning trade negotiations; both shall shall be public officials in political service.

4. In order to administer duties concerning patents, utility models, designs and trademarks, and examinations and trials concerning such duties, the Ransenari Intellectual Property Office shall be established under the Ministry of Economy and Finance.

5. The Ransenari Intellectual Property Office shall have an Administrator and a Vice Administrator; the Administrator shall be a public official in political service and the Vice Administrator shall be appointed from among public officers in general service belonging to the senior civil service.

6. The responsibilities of the Ministry of Economy and Finance shall include, but not be limited to:

• The revenues and expenditures of Her Majesty’s Government;
• International and domestic trade;
• Policy relations with international finance or trade organizations;
• Fiscal and monetary policy;
• Economic infrastructure;
• Management of nationalized industries.

7. The Minister of Economy and Finance shall have the administrative titles of Exchequer of the Queen, First Lord of Finance, and Comptroller of the Queen's Household.

ARTICLE III. Bank of Ransenar.

1. There shall be a government-owned Bank of Ransenar established as the government’s and banker’s bank, a government agency under the Ministry of Economy and Finance that is nontransferable.

2. The primary objectives of the Bank of Ransenar's operations shall be:

• To promote financial stability;
• To guide sound banking operations;
• To maintain the stability of the internal and external value of the currency;
• To foster economic development within the scope of the above objectives.

3. The Bank of Ransenar shall have its Head Office in the city of Goldfield and may establish branch offices in all regions of the Kingdom of Ransenar, as well as in foreign nations. The establishment and abolishment of its branch offices shall be authorized by the resolution of the Board of Directors and reported to the Lord High Steward and the Minister of Economy and Finance for joint approval.

4. The Bank of Ransenar shall have a Board of Directors consisting of as many directors as may be nominated by the Lord High Steward and appointed by the Queen.

5. The Lord Governor of the Bank of Ransenar, the Minister of Economy and Finance, and the Minister of Foreign Affairs shall be ex officio directors.

6. Except for the ex officio directors, the directors shall be appointed for a term of three AN years, and may be reappointed upon the expiration of such term.

7. The powers and functions of the Board of Directors shall be as follows:

• To examine policies concerning money, credit and foreign exchange;
• To examine the adjustment of the Bank of Ransenar's capital;
• To approve the operation plans of the Bank of Ransenar;
• To examine the budget and fiscal reports of the Bank of Ransenar;
• To examine and approve major by-laws and regulations of the Bank of Ransenar;
• To examine the establishment and abolition of the Bank of Ransenar's branch offices;
• To approve the appointment and the removal of the Bank of Ransenar's department heads and their deputies, and branch managers;
• To examine matters proposed by the Lord Governor;
• To examine the Bank of Ransenar's assets and liabilities;
• To audit the Bank of Ransenar's accounts;
• To examine the reserves for the issuance of currency by the Bank of Ransenar;
• To examine the amount of currency issued by the Bank of Ransenar;
• To examine and approve the Bank of Ransenar's fiscal reports;
• To investigate any case involving violation of this Act and the by-laws and regulations of the Bank of Ransenar.

8. The Board of Directors may delegate all or part of the above powers and functions to the Lord Governor of the Bank. The resolution of the Lord Governor shall be reported to the Board of Directors for record and approval. The Board of Directors shall establish rules and regulations of board meetings. Such rules and regulations shall be reported to the Minister of Economy and Finance for record.

9. The Bank shall have a Lord Governor with the rank of special appointment and may have up to two Deputy Governors with the rank of selective appointment, all of whom shall be appointed for a term of three years and may be reappointed upon the expiration of such term.

10. The Lord Governor shall be the chief executive in directing and supervising the operations of the Bank, shall carry out resolutions of the Board of Directors, and shall represent the Bank on all occasions. The Deputy Governors shall assist the Governor in the execution of the above duties.

11. The Lord Governor shall be the chairman of the Board of Directors. Whenever the Governor is unable to attend, the Deputy Governor designated to act for the Governor shall be the chairman.

12. Upon the resolution of the Board of Directors and approval by the Minister of Economy and Finance, the Head Office of the Bank may establish the following departments to affect its operations:

• Banking Department.
• Issue Department.
• Foreign Exchange Department.
• Treasury Department.
• Bank Examination Department.
• Economic Research Department.
• Department of Secretariat.
• Accounting Department.

13. The Bank of Ransenar may, whenever necessary, delegate other government mints to issue currency by region on its behalf, to be regarded as the national currency. The assets and liabilities pertaining to the issuance of such currency shall be for the account of the Bank.

14. The Bank of Ransenar shall keep currency equal to one-hundred percent of the currency it circulates in reserve.

15. The Bank of Ransenar, to assist economic development, may establish various funds, using savings deposits re-deposited by financial institutions and other special funds to refinance banks for their medium and long-term loans.

16. The Bank of Ransenar may, at its discretion and in the light of financial and economic conditions, prescribe an upper limit for the interest rates of bank deposits, and approve the range of interest rates on bank loans as proposed by the bankers' associations.

17. The Bank of Ransenar may, in the light of financial conditions, purchase and sell in the open market the bonds issued or guaranteed by the government, financial bonds issued by banks and bills accepted or guaranteed by banks. Her Majesty’s Government may veto any decision of the Bank of Ransenar to issue Government Bonds at any time prior to issue.

18. The Bank of Ransenar may, whenever it deems that the monetary and credit conditions so warrant, prescribe a maximum limit for various kinds of credits extended by all, or any category of, financial institutions.

19. The Bank of Ransenar shall license and examine all other banks that are to operate within Ransenar, as well as establish general regulations for their operation.

20. The Bank of Ransenar may contract foreign loans under its credit, or, by Royal Decree or Ordinance of the Lord High Steward, contract, or assist in the contracting of foreign loans in the name of the Kingdom, under such terms as Royal Decree or Ordinance of the Lord High Steward may provide.

ARTICLE IV. Taxation and Expenditure.

1. All rules of taxation and budgets for government expenditure shall be determined separately.

2. There shall be taxes levied from the People of Ransenar and the residents of the Kingdom, to pay for the expenditures of Her Majesty's Government and provide services to the People.

3. The following taxes are established, by recognizing the existing taxation system in the Kingdom of Ransenar, but specifying that its specifics be each determined separately, whether by Act of Ransenari Congress or Ordinance from the Steward:

• Income tax;
• Corporate tax;
• Inheritance tax;
• Gift tax;
• Special Substances tax;
• Stamp tax;
• Securities transaction tax;
• Education tax;
• Special tax for rural development;
• Comprehensive Real Estate Holding Tax.

4. If any ownership of an income, profit, property, act, or transaction which is subject to taxation, is just nominal, and there is another person to whom such income, etc., belong, the other person shall be liable to pay taxes and tax-related Acts shall apply, accordingly.

5. The provisions pertaining to the computation of tax base in the tax-related Acts shall be applied to a real income, profit, property, act or transaction, regardless of its title or form.

6. Where it is recognized as a method of receiving unjust benefit pursuant to this Decree or tax-related Acts, such as an indirect method through a third party or a method of involving two or more activities or transactions, this Act or tax-related Acts shall apply as if the relevant parties have made a direct transaction or have conducted an activity or transaction in succession, according to the economic substance of such activity or transaction.

7. Any taxpayer shall perform his or her liability in good faith and sincerity. The same shall apply to any tax officials in performing their duties.

8. In cases of tax reduction and examination, Her Majesty's Government may determine a range of the management of funds or assets equivalent to the amount of tax reduced or exempted, as prescribed by tax-related Acts, if it is deemed necessary to achieve the object of tax reduction or exemption or to implement national policies.

9. In interpreting and applying tax-related Acts, property rights of a taxpayer shall not be unreasonably infringed, in light of the equity in taxation and purposiveness of the relevant provisions.

10. In examining and determining the assessment of national tax base, standards or practices of corporate accounting which the person liable to pay taxes adopts continuously and are generally recognized as reasonable and proper, shall be respected provided that the same shall not apply to cases specifically provided for in other tax-related Acts.

11. Local governments shall have the authority to impose local taxes, as prescribed in this Decree or local tax-related Acts.

12. When local governments designates items of taxation, taxable subject matter, tax bases, tax rates and other matters necessary for imposing and collecting local taxes, they shall promulgate municipal ordinances within the extent prescribed in this Decree or local tax-related Acts.

13. The heads of local governments may promulgate municipal rules prescribing procedures for implementing municipal ordinances and matters necessary for such implementation.

14. Local taxes shall consist of ordinary taxes and earmarked taxes.

15. Items of ordinary tax shall be classified as follows:

• Registration and license tax;
• Leisure tax;
• Tobacco consumption tax;
• Local consumption tax;
• Resident tax;
• Local income tax;
• Automobile tax.

16. Items of earmarked tax shall be classified as follows:

• Local resource and facility tax;
• Local education tax.

17. Her Majesty's Government (hereafter referred to as "the State" or "the Government") shall have its fiscal years commence on the first day of the first month of an AN year, and end on the last day of the last month of an AN year.

18. The expenses for each fiscal year shall be covered by the revenue or income generated during the corresponding year.

19. The Governments's accounts shall be classified as general accounts and special accounts.

20. General accounts shall be established for appropriating major revenues, including tax revenues, to the Government's general expenditures.

21. A special account shall be established only by an Act when the State plans to operate a specific project, to hold a specific fund for management, when it is necessary to treat the account of certain revenue separately from general accounts to appropriate such revenue for certain expenditure provided that no special account shall be established, unless authorized by an Act of the Ransenari Congress, Royal Decree, or Ordinance from the Steward.

22. A fund may be established by an authority granted by an Act of the Ransenari Congress, only when the State needs to manage a specific fund for a specific purpose, in a flexible manner provided that no fund may be established with contributions from the Government or the private sector or charges received pursuant to an Act, unless there is due authorization.

23. Any fund established pursuant to Section 22 may be operated independently of the revenue and expenditure budgets.

24. The Government shall formulate a financial management plan covering a period spanning at least five AN fiscal years from the pertinent fiscal year (hereinafter referred to as "national financial management plan") to promote efficiency and soundness in financial management, and shall submit such plan to the Ransenari Congress by no later than 120 days before the commencement of a new fiscal year.

25. The head of each central government agency and each person responsible for the management and investment of a fund under a relevant Act (excluding persons to whom management and investment of a fund have been entrusted; hereinafter referred to as "fund managing entity") shall establish a system for performance management pertaining to fiscal activities.

26. The Government shall publish the budget, funds, settlement of accounts, the State bonds, loans, present value of the State-owned assets, consolidated fiscal balance, and other important matters prescribed by Royal Decree, Ordinance of the Lord High Steward, or Ministerial Ordinance from the Minister of Economy and Finance concerning finances of the State and local governments, by appropriate means, including information communications media and printed materials, at least once a year in a transparent and easy-to-understand manner.

ARTICLE IV. National Resources and Infrastructure.

1. The Ministry of Economy and Finance is responsible for the national resources. Jointly with the Ministry of Public Works and Construction, it is also resposible for the infrastructure of the Kingdom of Ransenar.

2. All of the natural resources in the Kingdom of Ransenar are owned by the people of Ransenar, with that collective ownership singularly vested on the Queen and administered by Her Majesty's Government for the Commonwealth of the people.

3. Her Majesty’s Government must not act in contradiction to the physical and resource maps of the Micronational Cartography Society (hereafter referred to as ‘the Maps’) when it exercises any of its powers under this responsibility.

4. The Ministry of Economy and Finance may declare the existence of natural resources within the Kingdom of Ransenar.

5. Declarations of the existence of natural resources must provide the following information:

• Type of resource;
• Location;
• Any other details prescribed by law.

6. The Ministry of Economy and Finance and the Ministry of Public Works and Construction may jointly declare the existence of infrastructure within the Kingdom of Ransenar.

7. Declarations of the existence of infrastructure must provide the following information:

• State the infrastructure type to be declared;
• Designate the entity responsible for it;
• Specify its location, where relevant; and
• State anything else that is prescribed by law, or any further detail that may be informative or helpful.

8. A declaration of existence of infrastructure may only be made under this section if:

• It is necessary that the infrastructure have been established for a long time;
• The infrastructure cannot practically be created by a business or a state-owned industry;
• No other alternative is possible.

9. There must be due and reasonable regard to the requirements of realism and economic stability in the exercise of any powers under this Article.

10. The Ministry of Economy and Finance and the Ministry of Public Works and Construction may jointly establish further rules in consultation with Her Majesty’s Government relating to the exercise of the powers described in this section.

ARTICLE V. Government-Owned Companies, Nationalization.

1. Her Majesty’s Government is entitled to establish government-owned industries and companies.

2. Her Majesty’s Government may only establish such industries under this section if:

• There is a pressing economic need;
• No private or otherwise existing Ransenari business is able or willing to carry out the work required.

3. Her Majesty’s Government may sell government-owned industries to private individuals and must have due regard for market demand in the industry’s relevant sector.

4. Her Majesty’s Treasury may obtain ownership of private companies and businesses within the Kingdom of Ransenar.

5. Nationalization must not occur unless:

• The company fulfills a pressing economic need and would otherwise stop functioning; or
• There is some other compelling and exceptional reason.

6. Her Majesty’s Government must, wherever possible, nationalize a company or business by the normal rules and laws of acquisition.

7. Where it is not possible to comply with the normal rules and laws of acquisition, Her Majesty’s Government must, wherever possible compensate the owners from whom the business or company is nationalized.

8. The Queen-in-Council may establish further rules relating to the exercise of the powers described in this Article.

9. The following government-owned companies are hereby established, with initial capitalization provided by Her Majesty's Treasury:

• Royal Agrarian Corporation (a government-owned agriculture and food processing company);
• Royal Railways Corporation (a government-owned railway management and construction company);
• National Construction Corporation (a government-owned general construction company);
• Ransenari Broadcasting Corporation (a government-owned tri-media company);
• Royal Ransenari Mail (a government-owned postal and parcel delivery service, headed by the Secretary of the Post Office);
• Royal Postal Savings Bank (a government-owned postal savings bank);
• Ransenari Import-Export Bank (a government-owned export-import credit agency);
• Ransenari Development Bank; (a government-owned industrial and capital acquisition credit agency);
• Ransenari Infrastructure Bank; (a government-owned infrastructure development credit agency);
• Ransenari Technologies Corporation (a government-owned research and development company).

10. The corporations under this Article may contract foreign or domestic loans, and issue bonds and commercial papers, under its own credit.

ARTICLE VI. Impairment of Contracts. Except in the interest of national security, no law impairing the obligations of contracts shall be enacted.

Given at Termarth Palace this 25th day of the IXth month of the year 1673 AN.

GOD SAVE THE QUEEN!

See Also

• Ransenar
• Provisional Government of the Kingdom of Ransenar

Preceded by: RD-III

Royal Decrees of the Kingdom of Ransenar Series 1

Succeeded by RD-V