Inactivity Tax Act

P.R.O. LAW CONSOLIDATION
Law Status:	In-Force
Last Consolidated:	2017-12-10

Whereas for the good and viable government of the Kingdom it is judged right and proper that government revenue by taxation should be enacted and regulated by law;

Whereas it is recognized that it is detrimental to the good of the national economy for currency to be held unused by inactive entities;

Be it decreed by His Royal Majesty, King August Charles II, by and with the advice and consent of the Government and Peoples of Gotzborg, in this Chamber of Deputies here assembled, and by the authority of the same, as follows:

Preliminary

Short Title

1. This Act may be cited as the Inactivity Tax Act.

Statutes Amended

2. The Taxation Act shall be amended by this Act as stated herein.

Commencement

3. This Act shall commence on a date to be fixed by Royal Decree.

4. Specific taxes enacted herein shall commence on the date or dates respectively provided.

Taxation Act amended

5. The Taxation Act shall be amended to include the following text as “Part V – Inactivity Tax:”

Inactivity Tax

Inactivity Tax Established

50. This Part enacts a universal tax called “Inactivity Tax”. The tax involves the seizure of all Thalers in possession of an inactive entity to the Royal Government, to be returned to the entity upon application, minus an administrative fee.

Liability for Inactivity Tax

51. A liability for Inactivity Tax arises when an entity is inactive for a period of six (6) months on the Kingdom’s community forums.

Method of Assessment

52. The assessment of Inactivity Tax shall be conducted by the Directorate of Finance based on records provided by the Communications & Information Branch of the Ministry of Public Works for individual entity activity on the community forums.

53. For a natural person, the date of commencement of inactivity corresponds to the date of the last post made by that person on the community forums.

54. For an entity as registered under the Business and Corporation Registration Act, the date of commencement of inactivity corresponds to the date of the last post or transaction conducted by that entity, whichever is most recent.

Assessment Period

55. The Directorate of Finance shall conduct a review of entity activity on a monthly basis and, for any entity for which liability is established, execute the procedure of Articles 56 and 57.

Lodgement

56. Upon the Directorate of Finance determining that an entity is subject to Inactivity Tax, it shall send to that entity, via personal message to the entity’s community forum user account, a notice of liability. This notice of liability shall briefly explain the consequences of being liable to the Inactivity Tax, inform the entity of the seizure of all of its Thalers in possession, and explain how the entity may reclaim those Thalers in accordance with Articles 58 to 60, inclusive.

57. The Directorate of Finance shall, upon sending the notice of liability, seize all Thalers in the entity’s possession, transferring the full amount to the account of the Royal Government on the exchange.

Entity Return to Activity

58. An entity may apply for reimbursement of seized Thalers at any time following its return to inactivity or upon notification of its liability under Articles 56 and 57.

59. Upon return to activity, the entity may apply to the Directorate of Finance for the forthwith reimbursement of seized Thalers, using appropriate administrative procedures to be defined by the Directorate through statutory instrument.

60. An entity that returns to activity shall be subject to a three (3) month probationary period in which a new Inactivity Tax liability will be commenced if the entity is inactive for a one (1) month period during their probation.

Reimbursement of Seized Thalers

61. Where the Directorate of Finance has reviewed an application for reimbursement and found it to be in good order, the Directorate shall deposit to the exchange account of the entity an amount equivalent to the total sum of Thalers seized minus an administrative process fee, known as the Repatriation Fee.

Repatriation Fee

62. All seized Thalers returned to an entity shall be subject to the imposition of a Repatriation Fee that offsets the costs of the Directorate of Finance in respect of administering the Inactivity Tax.

63. The Repatriation Fee is non-refundable and shall be equivalent to 10% of the total sum of Thalers seized from the entity.

64. The Repatriation Fee shall be applied against the total sum of Thalers seized prior to reimbursement.

Unlimited Liability

65. An entity is continuously liable to being the subject of Inactivity Tax.

Commencement

66. Inactivity Tax shall commence and be applicable in the Kingdom on and from 1 May 2013. The Inactivity Tax shall not be retroactively applied.

Notes

Chamber of Deputies Hansard Record
Introduction Date:	2013-06-04
Tabled By:	His Royal Majesty
Vote Outcome:	In Favour: ; Against:
Royal Assent Date:	2013-06-04 (Article 28)