Resource Cost Recovery Regulation (2014): Difference between revisions

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===Calculation and Remittance of Resource Cost===
===Calculation and Remittance of Resource Cost===


9. Each business entity that is required to remit payment to the [[Royal Government]] to reflect the cost of resources in its product shall be responsible for calculating that cost in accordance with the designated percentages in the Resource Charge Table.
9. Each business entity that is required to remit payment to the [[Royal Government of Gotzborg|Royal Government]] to reflect the cost of resources in its product shall be responsible for calculating that cost in accordance with the designated percentages in the Resource Charge Table.


10. The calculated resource cost for a product shall be remitted to the Royal Government’s account on the exchange forthwith upon the sale of the product.
10. The calculated resource cost for a product shall be remitted to the Royal Government’s account on the exchange forthwith upon the sale of the product.
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13. Where an audit is to be undertaken, the Directorate of Finance shall notify the business entity affected of the audit prior to its commencement.
13. Where an audit is to be undertaken, the Directorate of Finance shall notify the business entity affected of the audit prior to its commencement.


14. The audit process shall be conducted in private, where practicable, to minimize the market impact on the business entity; however, the findings of the audit shall be required to be submitted to the [[Project:Public Records Office|Public Records Office]] for inclusion in its publicly-accessible Archival Library.
14. The audit process shall be conducted in private, where practicable, to minimize the market impact on the business entity; however, the findings of the audit shall be required to be submitted to the [[:category:Public Records Office (Gotzborg)|Public Records Office]] for inclusion in its publicly-accessible Archival Library.


15. The audited business entity shall cooperate fully with the process and where it is found to owe monies to the Royal Government, or vice versa, accounts shall be settled within thirty (30) days of the publication of the audit findings.
15. The audited business entity shall cooperate fully with the process and where it is found to owe monies to the Royal Government, or vice versa, accounts shall be settled within thirty (30) days of the publication of the audit findings.

Latest revision as of 17:47, 22 December 2017

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Resource Cost Recovery Regulation (2014)
Promulgated By The Duke of Montin
Issuing Office Royal Chancellor's Office
Enactment Authority Royal Prerogative
Promulgation Date January 18, 2014
Governing Statute


Preliminary

Short Title

1. This regulation may be cited as the Resource Cost Recovery Regulation (2014).

Commencement

2. This regulation shall commence upon publication in the Royal Gazette (Government Notices Forum).

Authority

3. The administration of this regulation, the provisions within, and the collection of monies shall be undertaken by the Directorate of Finance unless otherwise specified below.

Entities Regulated

4. This regulation applies to all business entities, as defined and registered in accordance with the Business and Corporation Registration Act, that operate within the Royal Kingdom of Gotzborg and that sell products (goods, simulated or real) which may reasonably be found to contain raw or natural resources.

Services Exempted

5. Where a business entity provides a service, whether alone or inclusive with the sale of a good, the cost of providing that service or the portion of the good’s total value representing the service value, shall be exempted from this Regulation.

Resource Cost Recovery

Resource Cost Defined

6. The resource cost associated with the creation of a specific product shall be defined through an order of the Directorate of Finance and specified in the Resource Charge Table, included herewith in its current form as Schedule I.

7. For the purposes of ease of administration, the resource cost shall be a designated percentage of the total pre-tax value of the product’s cost or portion of its cost that is reasonably associated with the use of resources.

8. The resource cost associated with each specific product shall be reviewed bi-annually to ensure that the cost remains reasonable and reflective of the purchasing power of the Thaler based on economic performance and other relevant factors.

Calculation and Remittance of Resource Cost

9. Each business entity that is required to remit payment to the Royal Government to reflect the cost of resources in its product shall be responsible for calculating that cost in accordance with the designated percentages in the Resource Charge Table.

10. The calculated resource cost for a product shall be remitted to the Royal Government’s account on the exchange forthwith upon the sale of the product.

Audit

11. Each business entity shall provide the Directorate of Finance with a copy of their calculation of total product cost, including mark-ups and other related development costs, that includes a clear statement of the percentage / product type from the Resource Charge Table applied and to what quantity of the total product cost to which it applies. Schedule II, included herewith, illustrates an example calculation.

12. The Directorate of Finance shall be permitted, at its discretion, to audit the business entity’s calculation to ensure the application of the Resource Charge Table is reasonable.

13. Where an audit is to be undertaken, the Directorate of Finance shall notify the business entity affected of the audit prior to its commencement.

14. The audit process shall be conducted in private, where practicable, to minimize the market impact on the business entity; however, the findings of the audit shall be required to be submitted to the Public Records Office for inclusion in its publicly-accessible Archival Library.

15. The audited business entity shall cooperate fully with the process and where it is found to owe monies to the Royal Government, or vice versa, accounts shall be settled within thirty (30) days of the publication of the audit findings.

Schedule I: Resource Charge Table

This table provides a standardized list of charge amounts that are to be remitted to the Royal Government to represent the cost of resources used in the production of goods sold by business entities within the context of the Gotzborg economy simulation system.

The charge amount is a percentage applied to the pre-tax value (in Gotzborg Thalers) of the product (or portion of the product requiring resources - ex. drafting of plans for construction of a Work would not be subject) and is payable to the Royal Government on sale of the product. This table is updated regularly to reflect popular or new products that are assigned their own unique charge amounts. If a product is not listed, the general charge amount for the Industry / Sector is applicable. The lower the charge amount, the generally more profitable the product is for the business.

Industry/Sector Product Charge Amount (%)
Construction Building Construction - Residential Housing 40
Building Construction - Commercial 45
Building Construction - Industrial 45
Building Construction - Institutional 50
Road Construction 55
Rail Construction 55
Coastal/River Construction 60
Utility Construction 50
All Other Construction 50
Military Arms - Small Arms (rifles/pistols) 60
Arms - Machine Guns 55
Arms - Artillery 50
Arms - All Other Types 50
Arms - Ammunition - All Types 60
Land Vehicles - Wheeled 55
Land Vehicles - Tracked 50
Land Vehicles - Trailers 60
Military Aircraft - Fighters 45
Military Aircraft - Bombers 50
Military Aircraft - Zeppelins 55
Military Aircraft - All Others 55
Navy Ships - Dreadnoughts 45
Navy Ships - Battleships 45
Navy Ships - Battlecruisers 45
Navy Ships - Aircraft Carriers 45
Navy Ships - Heavy Cruisers 50
Navy Ships - Armoured Cruisers 50
Navy Ships - Light Cruisers 50
Navy Ships - Protected Cruisers 50
Navy Ships - Frigates 55
Navy Ships - Destroyers 55
Navy Ships - Gunboats 60
Navy Ships - Submarines 50
Navy Ships - Fleet Supports 60
Navy Ships - Special Service Ships 45
Navy Ships - All Others 55
Beverages Non-Alcoholic - All Types 60
Alcoholic - All Types 60
Furniture All Types 60
Civilian Aerospace Civilian Aircraft - Passenger (more than 8 occupants) 55
Civilian Aircraft - Passenger (8 or less occupants) 60
Civilian Aircraft - Cargo 60
Civilian Aircraft - All Others 60
Civilian Shipbuilding Civilian Ships - Pleasure Craft 50
Civilian Ships - Yachts 50
Civilian Ships - Specialized 50
Civilian Ships - Cargo 60
Civilian Ships - All Others 50
Railroad Equipment Steam - Locomotive - Passenger 50
Steam - Locomotive - Freight 55
Steam - Locomotive - Yard/Switching 60
Diesel - Locomotive - Passenger 50
Diesel - Locomotive - Freight 55
Diesel - Locomotive - Yard/Switching 60
Rail Cars - All Types 60
Civilian Automotive Cars - Passenger 60
Cars - Specialized (Police/etc) 55
Trucks - Passenger 60
Trucks - Specialized (Police/etc) 55
Trucks - Cargo 60
Trailers - All Types 60
Motorcycles - All Types 55
All-Terrain Vehicles - All Types 55
Textiles All Types 60
Manufacturing Equipment All Types 60
All Other Industries All Types 50

Schedule II: Sample Resource Cost Calculation

A construction company is engaged on a design and build contract by a client. The contract involves the design development of an industrial building and the construction thereof. The total contract value is GTh 100,000, of which GTh10,000 is for the design development. Under this regulation, the service portion of the contract is exempted from the calculation. Therefore, the total product or good value subject to resource cost recovery is GTh 90,000. Using the table in Schedule I, the Charge Amount for the construction of an industrial building is 45%. The total sum to be remitted to the Royal Government upon execution of this contract would thus be GTh 90,000 x 45% = GTh 40,500.