Resource Cost Recovery Regulation (2014)

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.