Statutory Taxation Act on Business

Stipulations

Record keeping and payment of tax by licensed businesses will be considered optional until businesses receive a payment processing system to track electronic purchases and business expenses.

This stipulation will be lifted, and tax will become mandatory once the tools above are received by licensed businesses. Any voluntary business taxes paid under this legislation to the Los Santos County State Authority Account #10 prior to receiving enhanced business tools will be considered donations and used for local events and other citizen-focused activities.

Introduction

This legislation mandates a standardized tax system for all licensed businesses within Los Santos, requiring a 10% tax on net income. The net income is defined as income remaining after all authorized business costs have been deducted from all business revenue.

Purpose

To ensure fair taxation and accountability of all businesses operating within Los Santos, while providing clear guidelines on tax reporting, record keeping, and penalties for noncompliance. All taxes will be re-invested into Los Santos County to raise the standard of living through investment into essential services, county events, and other non-profit activities and organizations.

Constitutional Justification

In accordance with Article I of the Constitution of San Andreas, which establishes the obligation of citizens to pay taxes, this legislation ensures that all licensed businesses contribute their fair share to the state’s revenue, promoting the general welfare and financial integrity of Los Santos County.

Definitions

Net Income: Income remaining after all authorized business costs have been deducted (revenue – expenses = net income (profit)

Authorized Costs: Legitimate business expenses directly related to the operation and upkeep of the business.

Audit: A formal examination of financial records to ensure accuracy and compliance with tax laws.

Taxpayer: Any individual, entity, or business that is required to pay taxes to the government, including those engaged in licensed business activities within Los Santos County. This includes all entities responsible for filing tax returns, reporting income, and adhering to tax laws and regulations as specified by the government.

Enforcement/Penalties:

1. Businesses failing to report or pay taxes on time will incur a penalty of 15% of the total amount due, per missed payment period. A payment period is considered two weeks, payable on the 1st and 15th calendar day of every month.
2. Intentional or unintentional deficiencies found during an audit will result in penalties proportionate to the severity of the discrepancy.
3. Businesses that fail to keep accurate records or submit cash transactions within the required timeframe will be fined up to 25% of the unreported revenue.
4. Unpaid taxes can be delinquent for two periods (30 calendar days) beyond their due date. Unpaid taxes extending beyond this period may be subject to fine, penalty, audit, or any combination thereof, and forfeiture of business license.

Details

Tax Rate

1. 10% tax on the business’s net income, which is the income remaining after all authorized costs are deducted from revenue. The tax rate may change over time, and may vary by industry, sector or business category, at a later date.

Tax Reporting & Payment

1. Businesses may be subject to audit at the request of the Los Santos County Mayor’s Office, or the LSPD.
2. The Tax Reporting Form 1313c is established as the official document for businesses to report taxable income and show proof of tax payment. This form must include the business account number as well as additional required field data within Form 1313c.
3. Taxes must be paid to the Los Santos Authority Account ID# 10 and sent transactions are to be appropriately labeled with “Taxes” + Business Name and the Pay Period.
4. Tax submissions are required bi-monthly, on the 1st and 15th of every month.
5. Missed payments may be made if the Taxpayer’s bank transaction to the State Account description field reflects the correct pay periods being compensated.
6. County and Police action against deficient Taxpayers will be considered upon 30 days after a missed Tax submission.
7. Any member of a licensed business may administer the financial documenting, reporting or paying of the business’s taxes.
8. Registered Business owners have the ultimate responsibility in ensuring their businesses tax compliance.

Record Keeping

1. Businesses are responsible for diligent record keeping of revenue, expenses, and all cash transactions.
2. Businesses may use their own template for financial record keeping if competent or refer to the template linked within Form 1313c.
3. Cash revenue must be deposited into the business account within one week and must be accurately reported.
4. Records must be maintained in the event of an audit by the county, state or county authorities.

Audits

1. Business financials are subject to audit, with a subpoena, if financial metrics appear illogical (e.g., assets far outweighing income). Failure to comply can result in criminal charges such as ‘Refusal of Audit’ and revocation of Business License.
2. Inconsistent or questionable records may trigger an audit, and penalties will be applied if deficiencies are found.

Signatures

Nino Chavez

Los Santos Mayor’s Office

August 10, 2024

Underwriter: LSCMO, Abilene Contralto Esq., 08/12/2024

Signatories: LSCMO, Archibald McRae, Michael Razzel 08/12/2024