No. 59. Law on special tax on higher gains related to warfare. We the Captains Regent of the Most Serene Republic of San Marino We promulgate and publish the following law approved by the Great and General Council Seat models in the September 14, 1945: Art. 1. From 1 January 1941 until a date to be stable with a special legislative measure profits products as citizens of the Republic or foreigners resident in it at least three months in the exercise of industrial and commercial activities or business derived from the exercise of intermediary activities are subject in each year, for the portion exceeding the ordinary income, to a tax extraordinary in major gains on the state of war. The difference between the total income and the income determined for each year to the normal tax is also subject to the same standard but not to complementary. Art. 2. For total income to be considered the sum of all income in each year. For companies or entities taxed at ordinary tax purposes on the basis of the income subject to tax extraordinary budget are held in calculating the amount finally determined tax on normal pertaining to each year's budget. For ordinary income to be considered income definitively ascertained or ascertainable at the normal tax rate for the year 1939. If the ordinary income above is less than 8% of net invested capital in 1939 the taxpayer can ask that it be given to such an extent . For companies and entities taxed on the valuation of the invested capital in the balance sheet basis can not be inferior to the nominal value of the subscribed and paid-up capital. For banks and the capital invested in determining insurance delreddito will still be considered less than the amount of the paid-up capital and capital reserves. When on business arising from the exercise of active à intermediary missing income ascertained from the normal set or they are assets started posteriorly ordinary income is assessed to the extent fixed by L. 10,000 per year. Art. 3. For established companies behind the 1939 ordinary income is determined using appropriate comparison with their ordinary income determined in respect of companies in the same category, but in any event not less than 8% of net invested capital. In the case of farms managed by companies who, by assignment for consideration or free of charge, are passed to another controller, the ordinary income is represented by the known or ascertainable by the year 1939 compared to those in that year ran the 'company. Art. 4. For companies and entities taxed at the regular tax purposes on the basis of statements which have been made after 31 December 1939, ordinary income is considered to be equal to 8% of the capital invested in each year. The same provision applies to companies and organizations formed in the year 1939, of which the first year shall be closed after 31 December of the same year. And 'otherwise in the faculty of companies and entities mentioned in the preceding paragraphs to request that the ordinary income is determined by appropriate comparison with their ordinary income determined in respect of companies and entities in the same category. Art. 5. When understands that the taxpayer has carried out an activity of exchange or brokerage in derogation from the provisions concerning the mandatory consent or the detention of goods or the limitation of price, may be taken ascertain by induction, having regard to circumstances and in special way to the assets currently owned by the taxpayer which these do not justify the origin. Art. 6. In the speculative operations on real estate, know the isolated nature, is dependent on exercise of uninterrupted activity, the more extraordinary profit liable to tax is the difference between profit established for each operation and that it would be the profit obtainable from the same transaction if it fo if was made in 1939. Art. 7. the special tax does not apply where the total income does not reach in each year the 15,000 lire. - There is also the extraordinary application of the tax when the surplus on ordinary income does not reach the L. 6,000. The tax itself is applicable on income shares in excess of the ordinary as far as follows: 15% on the fee does not exceed one fifth of the ordinary income; 20% on the next two-fifths of the ordinary income; 30% on the top two-fifths of the ordinary income; 60% on the additional surplus. Where the total income does not exceed in each year of the L. 50,000 the previous rates are
reduced by half. Where the total income exceeds 50,000 but not double the ordinary income tax is applied on the first 50,000 L. with reduced rates by half. For the purposes of extraordinary tax surplus on ordinary income is calculated net of the normal income tax. Art. 8. Those who are subject to the extraordinary in the previous articles have to do your tax return made each year and, if necessary, of its invested capital, by 31 October 1945. For the years 1945 and following the declaration ess must re made by January 31 of the following, unless pei pei taxpayers taxed on the basis of statements which the return must be filed within the terms established by art. 17 of the law 16 March 1922 n. 10. The Tax Office action for rectification of the statements is prescribed with the 31 December of the second year following the year in which the declaration has to present. Art. 9. The Tax Office has the right to subscribe to the role of tax resulting from the tax payers, except to inscribe the difference when it defined the assessment to be performed by the same always in the term of art. 8. In the case of non-declaration to the Tax Office will ex officio assessment by 31 December of the third year following the year in which it will end the extraordinary tax. Art. 10. For the assessment of the subject to ordinary income str, for the resolution of conflicts and for whatever else is expressly provided by this Act apply to the rules for applying the standard rate of income tax. Art. 11. The special tax roles are filled hill formalities under Law 16 March 1922, n. 10. However, the Tax Office, when it recognizes the opportunity, can also fill out extraordinary roles, and when it has a justified reason that it believes the taxpayer to escape anyway to pay the tax can be made for the riscos ion of sums already inscribed in role takes place in a single solution. The Tax Office also has the possibility of inscribing provisionally, even in extraordinary roles, the view on the basis of assessment or correction from it notified after the expiration of thirty days of such notification, a share of 50% of these gains ascertained. Art. 12. Notwithstanding the provisions contained in the law 16 March 1922, n. 10, who, having obliged, under the terms of this Act, to make the declaration of extraordinary income subject to tax on more profits relating to the non-fulfilled state of war, it is required to pay a fine equal to half of ' extraordinary tax due. In the case of income subject to tax even normal it is also required to pay a fine equal to half the tax. When the declaration is submitted after the deadline but the delay is one month or a fine of the first paragraph it is reduced to one-fifth. Art. 13. Who says straordinar income subject to tax at the higher gains related to the state of war in far lower than those definitively established is obliged to pay, by way of monetary penalty, a sum equal to half the difference between ' extraordinary amount of tax and, as result, the ordinary income tax, and the amount of such taxes applicable according to the statement. Art. 14. When the detection and correction of income subject to tax under this law are defined by composition both before the estimation Council is before the Commission for tax fines and penalties referred to in art. 12 and 13 are reduced to a quarter. Art. 15. Anyone who fails to comply with provisions and dates all requests made by the Tax Law, the Council and the Commission estimate for taxes in the exercise of their powers for the application and determination of total income for tax purposes under this law shall be punished by fine glue L. 500 to L. 2000, when the fact is derived obstacle to the exercise of these powers. Art. 16. Anyone in order to subtract income tax under this Act alters the accounting records or omits the inscription in the inventories of assets or liabilities or non-existent registers you as records or other fictitious documents or declare non-existent in whole or in part assets, which then ensure subsisting in fact at the time referred to by the declaration, or commits other direct fraudulent for the same purpose shall be punished with a fine corresponding to the tax
which he intended to escape, without prejudice to any judicial proceedings from the facts that constitute a common crime. Art. 17. Transferees of a commercial or industrial are jointly responsible for the entire tax charged income from previous operators sold the company for the current year and for the two years prior to the year of the transfer and the pecuniary penalties owed by them in dependence of such income even when the company sold both front at the time of the statement or tax assessment notice in question. These effects are believed transferee who, in any place, continuing the company already exercised dl transferor. The exercise in the same premises of the industry or trade already exercised by other forms presumption of the sale. Art. 18. As it is not otherwise provided in this Act for the extraordinary collection of taxes on higher profits related to the state of war, the provisions contained in the law 16 March 1922, n. 10. Given at Our Residence, this day of September 15, 1945 (1645 dFR). THE CAPTAINS REGENT Alvaro Casali - Vittorio Valentini THE SECRETARY OF STATE FOR INTERNAL AFFAIRS Giuseppe Forcellini