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You cannot get what you’ve never had unless you’re willing to do what you’ve never done.

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When I despair, I remember that all through history the ways of truth and love have always won. There have been tyrants, and murderers, and for a time they can seem invincible, but in the end they always fall. Think of it - always.
- Mahatma Gandhi

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The Lion asked the Wizard one time, "When does a slave become a king?"

"When You start acting like one! "

Otherwise You remain a slave all Your life.

 Buck Act 
Buck Act 

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THE STORY OF THE BUCK ACT

How the Federal Government Deceitfully Gets
Jurisdiction Over You and Everything You Own.

 The united States of America

This is a map of the united States of America. It includes the 50 sovereign and independent states who are freely associated together in a union. It does NOT include the "District of Columbia," which was created by the Constitution of the Union as the legal home of the "federal" government. That government was intended to be a "servant" to the Union States, not their "Master!"

In order for the Federal Government to tax a Citizen of one of the several states, they had to create a contractual nexus. This contractual nexus is called "Social Security." The Federal government always does everything according to principles of laws.

In 1935, the federal government instituted Social Security. The Social Security Board then, created 10 Social Security Districts creating a "Federal Area" which covered the several states like an overlay.

In 1939, the federal government instituted the "Public Salary Tax Act of 1939," which is a municipal law of the District of Columbia, taxing all Federal and State government employees and those who live and work in any "Federal area."

Now, the government knows it cannot tax those Citizens who live and work outside the territorial jurisdiction of Article I, Section 8, Clause 17, or Article IV, Section 3, Clause 2.

So in 1940, Congress passed the "Buck Act" 4 U.S.C.S. 104-113. In Section 110(e), this Act allowed any department of the federal government to create a "Federal Area" for imposition of the Public Salary Tax Act of 1939, the imposition of this tax is at 4 U.S.C.S. section 111, and the rest of the taxing law is in Title 26, The Internal Revenue Code. The Social Security Board had already created an overlay of a "Federal Area."

As a result, the Federal Government created Federal "States" which are exactly like the Sovereign States, occupy the same territory and boundaries, but whose names are capitalized versions of the Sovereign States. (Remember that Proper Names and Proper Nouns in the English language have only the first letter Capitalized.) For example, the Federal "State" of ILLINOIS is overlaid upon the Sovereign State of Illinois. Further, it is designated by the Federal abbreviation of "IL", instead of the Sovereign State abbreviation of "Ill." So too is Arizona designated "AZ" instead of the lawful abbreviation of "Ariz.", "CA" instead of "Calif.", etc. If you use a two-letter CAPITALIZED abbreviation, you are declaring that the location is under the jurisdiction of the "federal" government instead of the powers of the "Sovereign" state.

As a result of creating these "shadow" States, the Federal government assumes that every area is a "Federal Area," and that the Citizens therein are "Federal" citizens.

4 U.S.C.S. section 110(d).

"The term `State' includes any Territory or possession

4 U.S.C.S. section 110(e).

"The term Federal area means any lands or premises held

There is no reasonable doubt that the federal "State" is imposing directly an excise tax under the provisions of 4 U.S.C.S. Section 105 which states in pertinent part:

"Section 105. State and so forth, taxation affecting

Humble Oil & Refining Co. v. Calvert, (1971) 464 SW2d.

170, affd (Tex) 478 SW2d. 926, cert. den. 409 U.S. 967, 34

L.Ed2d. 234, 93 S.Ct. 293.

Thus, the question comes up, what is a "Federal area?" A "Federal area" is any area designated by any agency, department, or establishment of the federal government. This includes the Social Security areas designated by the Social Security Administration, any public housing area that has federal funding, a home that has a federal bank loan, a road that has federal funding, and almost everything that the federal government touches though any type of aid. Springfield v. Kenny, (1951 App.) 104 NE2d. 65.

This "Federal area" attaches to anyone who has a social security number or any personal contact with the federal or state governments. Thus, the federal government has usurped Sovereignty of the People and state Sovereignty by creating these federal areas within the boundaries of the states under the authority of the Federal Constitution, Article IV, Section 3, Clause 2, which states:

"2. The Congress shall have power to dispose of and make all needful rules and regulations respecting the territory or other property belonging to the United States, and nothing in this Constitution shall be so construed as to prejudice any claims of the United States, or of any particular State."

Therefore, the U.S. citizens [citizens of the District of Columbia] residing in one of the states of the union, are classified as property and franchises of the federal government as an "individual entity" Wheeling Steel Corp. v. Fox, 298 U.S. 193, 80 L.Ed. 1143, 56 S.Ct. 773.

Under the "Buck Act" 4 U.S.C.S. sections 105-110, the federal government has created a "Federal area" within the boundaries of all the states. This area is similar to any territory that the federal government acquires through purchase or conquest, thereby imposing federal territorial law upon those in this "Federal area." Under federal territorial law as evidenced by the Executive Branch's yellow fringed merchant law flag (see Federal Courts for an explanation) flying in schools, offices and all courtrooms.

So, when you send mail using the two-letter CAPITAL abbreviation for the state, you are addressing the corporate shadow state created by the Buck Act as an extension of the federal District of Columbia, and you are accepting the jurisdiction of the FEDERAL Government within the borders of the Sovereign States!

Then, to really lock down their control, the federal government created an artificial PERSON to whom they could address all of their demands. This person is Your Name in ALL CAPITAL LETTERS! Whenever you receive a letter from the government addressed in ALL CAPITAL LETTERS (such as "JOHN SMITH" instead of the proper English language "John Smith") they are addressing a legal fiction, a "straw man," whom they assume they OWN. This is fully explained in the LIBERTY REDEMPTION PACK.

Since they are going on the assumption that they OWN this "straw man" (which they actually do not -- and you can learn how you can take TITLE to this "straw man") they assume that whatever money comes in to the property ("straw man") belongs to the master (government).

What you are experiencing is an unprecedented GRAB for power by the "federal" government! In fact, Agents of the "federal" government have NO jurisdiction within the borders of these separate and sovereign united States, or over the "straw man" -- unless you give it to them!

YOU CAN, LEGALLY, BECOME EXEMPT
FROM INTERNAL REVENUE TAXES!

Americans today are the most exploited people in history!

It's gotten so bad today that many Americans are actually AFRAID of their own government! For example, here is syndicated humorist Dave Barry trying to be funny about paying Income Taxes:

"It's tax time again, Americans: Time to gather up those receipts, get out those tax forms, sharpen up that pencil and stab yourself in the aorta."

...and, on how to communicate with the Internal Revenue Service, Barry says:

"GOT A QUESTION OR COMMENT FOR THE IRS? Speak it into any electrical fixture in your home. Then just wait."

IMAGINE! You're supposed to ACCEPT the idea that the government has bugged your home! This is an absolutely devastating comment on the tyranny that has taken over "The Land of the Free and the Home of the Brave!"

It almost seems like the IRS has now adopted that famous saying by one of America's great showmen:

"There's a sucker born every minute."

But, intelligent Americans, who are willing to learn the TRUE facts, have a couple of WONDERFUL protections!

The single GREATEST tax shelter available to Americans is ...

CITIZENSHIP!

The SECOND greatest tax shelter available to Americans is ...

The Internal Revenue Code!


There are many kinds of tax that we each have to contend with in our lives. Here, we'll limit our discussion to the Federal Income Tax.

Please UNDERSTAND...we are NOT saying you should become a "TAX PROTESTER!" We believe that you should pay ALL the taxes you are legally obligated to pay! And, if you work for the Federal Government, are a citizen of the Federal District of Columbia (or live on federal land), and receive "income" (as legally defined), you must pay Federal Tax each year to the Internal Revenue Service. However, if you, like most people in this country, live in one of the 50 States, and work in private business, you do not owe a DIME in FEDERAL INCOME TAXES (because -- you, legally, don't have any FEDERAL "income")!

This may seem RADICAL and SCARY. However, the facts, and the law, clearly prove that the Internal Revenue Service has taken a law which pertains ONLY to "INCOME" from the Federal District, and has attempted to impose it on ALL of the PRIVATE earnings of the Citizens of the united States of America (Note: This is the correct capitalization for the name of the Union of States). But, that is NOT what the LAW mandates!

We've all been told that the Internal Revenue Code is way too complicated for anyone to go read! Why do they tell you that? Perhaps, if you did read it, you'd learn they can't do what they are attempting! Title 26 of the United States Code, the Income Tax Code, is the legal basis for all of the IRS's actions. And, believe it or not, the Code is written CORRECTLY!

We must use THEIR Code to determine OUR tax liability.

But, just as its title says, it is a CODE! It has to be "translated" or "broken down" into normal, everyday language to be easily understood. You must understand that in the IRS Code, the words "include" and "includes," mean "restricted to what is identified." One of the most difficult things to come to grips with is that the IRS Code intentionally plays Word Games to confuse us. By taking everyday words, and re-defining them to mean something else, the IRS attempts to trick you into "compliance." Always remember, the LAW is exactly what it is called - a CODE - that must be translated!

Now, let's see some examples of this word trickery by seeing how important terms are defined for use in the regulations. The following definitions are direct quotes from USC 26, the Federal Income Tax Code.

Section 7701(a)(9):

"UNITED STATES.- The term `United States' when used in a

geographic sense includes only the States and the District

of Columbia."

This sounds like what we have always believed - Atlantic to Pacific -coast to coast - all the states -- but wait! What do they mean by "State"? Look at the very next paragraph!

Section 7701(a)(10):

"STATE.- The term `State' shall be construed to include the

District of Columbia, where such construction is necessary

to carry out provisions of this title."

What? "State" means just the "District of Columbia?" This means that we can substitute "District of Columbia" for the word "States" in the definition for "United States!" So, the "United States" which the Internal Revenue Code and the Internal Revenue Service have jurisdiction over is limited to the District of Columbia - and - the District of Columbia!

Yep! They're playing WORD GAMES with us!

But, just hold on! Wait a minute here! How do we know the definition of "State" means that the 50 States of the "UNION" aren't included? Let's be SURE that the 50 separate STATES are NOT included in the "United States" as defined.

Section 6103(b)(5) of the IRS Code has a unique definition of "State," dealing with areas used for Procedure and Administration. These are the places from which you can legally file documents. Section 6103(b) says:

"(B) DEFINITIONS.-For purposes of this section-"

...So, it is clear that the definitions ARE ONLY FOR THIS SECTION...

"(5) STATE.-The term `State' means - any of the 50 States,

the District of Columbia, the Commonwealth of Puerto Rico, the

Virgin Islands, the Canal Zone, Guam, American Samoa, and the

Commonwealth of the Northern Mariana Islands, and..."

[emphasis added]

(The rest of the definition is about municipalities.)

So, if you are a federal employee who needs to file tax forms, you can do it from any of the places listed in this definition, including "any of the 50 States." But, we plainly see the "United States" which imposes the Internal Revenue Tax, as previously defined, DOES NOT include the 50 States - it is JUST "Washington D.C."

HOW CAN THIS BE?

Well, the answer really goes back to the American Revolution.


When Lord Cornwallis surrendered in 1781, he capitulated 13 different times to thirteen separate, independent Nations; New York, Virginia, Connecticut, Rhode Island, Massachusetts, etc. With that act, the Crown of England recognized the Sovereignty of the thirteen independent colonies as independent Nations. And, the States have been separate and independent ever since! Your State, whether it calls itself a State or a Commonwealth, is still an Independent Republic. This is mandated by the Constitution of the united States, Article 4, Section 4:

"The United States shall guarantee to every State in this Union

a Republican Form of Government..."

The original 13 small "nations" realized that they were much too small, individually, and too weak to be able to survive. So, they banded together and formed a "Union." They put together a "Constitution," which created a "federal government" to perform the functions between the states (trade between the new little "nations") and internationally (embassies, diplomacy, armies, etc.) that the separate little nations couldn't perform for themselves. This Constitution was intended to put chains around that federal government, because the founders understood that if it was not restricted, it could easily run amuck and take over the Union. It should be noted here that the "federal government" was to be the servant of the Union, NOT the master as it is attempting to be today.

The definition of the name "United States " came before the U.S. supreme Court in 1945, in the Hooven & Allison Co. v. Evatt case. The ruling, which has never been challenged since that time, said that there are actually THREE "United States": (1) It may be the name of a sovereign nation occupying the position of other sovereigns in the family of nations.

(2) It may designate the limited territory, the ten square mile area (on the Potomac River) designated in the Constitution, over which the sovereignty of the federal government extends.

(3) It may be the collective name of the 50 States which are united by and under the Constitution as the "united States of America."

As a Citizen of one of the independent, Sovereign States, one of the stars on the flag, you are also a Citizen of the Union of the States, but not the District of Columbia. The District of Columbia does not have a star on the flag, and is NOT part of the Union. (The citizens of the federal district also do NOT have the protection of a Constitution or a Bill of Rights!)

You can learn a great deal more about this in the ORGANIC SOVEREIGN AMERICAN FREEMAN COMPENDIUM - a huge, two-volume compendium of over forty five years of research and scholastic effort. This home-study course will tell you the amazing story, heavily documented, of how the Federal Income "Tax" has been fraudulently imposed on the Sovereign Citizens of the united States of America.

You DO NOT face going to jail or having your possessions confiscated by the IRS for standing up for your Rights! This is STILL America! Even with all of the problems that have come upon our nation in the last several decades, we are NOT living in a police or totalitarian state, yet!

In fact, the Federal Income Tax is EXACTLY what it claims -- a tax on "FEDERAL" income! And, the "Internal" Revenue Service has power ONLY over the INTERNAL revenue of the federal government. To prove to you that the IRS Code is designed to extract taxes from FEDERAL employees, let's take a look at the definition for "EMPLOYEE."

Section 3401(c):

"EMPLOYEE.-For purposes of this chapter, the term `employee'

includes an officer, employee, or elected official of the United

States, a State, or any political subdivision thereof, or the

District of Columbia, or any agency or instrumentality of any one

or more of the foregoing. The term `employee' also includes an

officer of a corporation."

To be an "EMPLOYEE", you have to WORK FOR THE GOVERNMENT, or be an officer of a corporation (they're referring to municipal corporations)! But, guess what this means regarding having your employer take money out of your paycheck? Yes, you're getting ahead of us here, aren't you. Be patient. We'll cover it ALL!

Our old friend, Uncle Sam, is getting a little old, battered and the worse for wear, these days, but he STILL has a vitally important question for you, the Citizen.  But, what if you are an "officer of a corporation" as stated in the Code (above)? Well, you'll learn that your business does not even QUALIFY to pay taxes, under the Internal Revenue Code!

Section 7701(a)(3):

"CORPORATION.- The term `corporation' includes associations,

joint-stock companies, and insurance companies."

That doesn't sound like YOUR company, does it? And, further study of the Tax Code will reveal that the "corporation" must be formed in, doing business in, or receiving "income" from - the District of Columbia (otherwise it is considered to be a "foreign" corporation)! So much for the "officer of a corporation" problem in the "Employee" definition.

Further, if your business is not incorporated, take a look at the definition provided for a "TRADE OR BUSINESS ".

Section 7701(a):

"TRADE OR BUSINESS.-The term `trade or business' includes the

performance of the functions of a public office." [emphasis added]

NO KIDDING!!

That's what the Tax Code SAYS!!

Think about it. All of your life, haven't you had a gnawing feeling deep inside you, that the Tax Code and the actions of the IRS were WRONG? You know, that knot of fear in your stomach you got each Spring when "tax time" came around?

Haven't you? Well, learn the TRUTH!

In 1991, the IRS reported that there were 163 million "taxpayers", and in a seperate report, they claimed that they received 111 million tax filings for that year. What happened to the other 52 million? The Internal Revenue Service is silent about them. Some probably got to tax-filing time, didn't have the money, and are hiding under the bed in fear. But many, many of these "missing" people learned how to be EXEMPT from the IRS and the Federal Income Tax, and have permanently dropped out of the system!

As late as August 26, 1993, then IRS Commissioner Peggy Richardson, in a speech to Lawyers and Accountants (members of the National Association of Enrolled Agents) asserted that she needed their help to achieve greater "voluntary compliance" from taxpayers, because annual collections were dropping. She said that the IRS was NOT collecting at least "$70 billion in additional revenues each year." She further stated that at least 1 out of 5 "taxpayers" were now REFUSING to comply, and that the "tax revolt" is growing. In addition, she claimed that "The compliance level from corporations in the service industries fell from 69 percent to 48 percent between 1980 and 1987." [emphasis added]

In the summer of 2002, then Commissioner Rosotti went to Congress to plead for more funds because the IRS was not able to keep up with the number of Americans leaving the tax system! When Congress turned him down, he quit.

In the ORGANIC SOVEREIGN AMERICAN FREEMAN COMPENDIUM, quoting directly from the laws of the United States and the Internal Revenue Code itself, you are shown step-by-step how the Federal Income "Tax" is not a "tax" at all, and where the money you have been paying all these years REALLY goes (since 1942, not a dime of it has EVER gone to the Federal Treasury)! The ORGANIC SOVEREIGN AMERICAN FREEMAN COMPENDIUM also reveals the exact source of all of the money the government does actually use to pay its bills, and what the Constitution says about who can levy taxes, on whom the taxes are levied, and what taxes are specifically prohibited. (HINT: The Individual Income Tax is prohibited!)

To put your mind at ease, you need to realize that if EVERYBODY in the entire country STOPPED paying Federal Income tax, the federal government would STILL get all the constitutionally approved income it had in 2003! There would be plenty of money to support the government, pay for schools, the military, to fix roads, build bridges, etc. The government would NOT go broke!  

"Include" and "Includes"The Internal Revenue Code wants you to believe that the Tax Code covers everything that is listed in the Code, and can be expanded to involve anything else they may decide upon at any later date. Look at the "definition" written in the Internal Revenue Code:

"Sec. 7701(c) INCLUDES AND INCLUDING. - The terms `includes' and `including' when used in a definition contained in this title shall not be deemed to exclude other things otherwise within the meaning of the term defined." This would, at first glance, seem to say that these words are used in the Code in an expansive way, not a limiting way. (However, if you carefully analyze this "definition," you discover that it is a classic example of "double-talk." It really doesn't say ANYTHING!) But, going along with their game, if you are supposed to believe that these words are expansive in nature, how can you explain the definition for "GROSS INCOME" as stated in the Code?

"SEC. 61(a) GENERAL DEFINITION. - Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the following items:..." [emphasis added] Why did they feel required to add "(but not limited to)?" The answer is self-evident: they knew that "including" is a LIMITING term! If they wanted to have the flexibility to contend that items other than those itemized in the Code could be added to the definition of Gross Income, they had to specifically reserve the right to add other things - hence the addition of "(but not limited to)."

You need to understand that the words "include" and "includes," when used in the Tax Code, DO NOT mean that other things can be included, but rather the definition is limited to the items specifically listed in the law.

Treasury Decision No. 3980, Vol. 29

As you probably know, Black's Law Dictionary is the Bible of legal definitions. See what it says:"Include. (Lat. Inclaudere, to shut in. keep within.) To confine within, hold as an inclosure. take in, attain, shut up, contain, inclose, comprise, comprehend, embrase, involve. Term may, according to context, express an enlargement and have the meaning of and or in addition to, or merely specify a particular thing already included within general words theretofore used. "Including" within statute is interpreted as a word of enlargement or of illustrative application as well as a word of limitation. Premier Products Co. v. Cameron, 240 Or. 123, 400 P.2d 227, 228." In other words, according to Black, when INCLUDE is used it expands to take in all of the items stipulated or listed, but is then limited to them!

Further, Bouvier's Law Dictionary has the following definitions:"INCLUDE (Lat. in claudere to shut in, keep within). In a legacy of `one hundred dollars including money trusteed' at a bank, it was held that the word `including' extended only to a gift of one hundred dollars; 132 Mass. 218..."

"INCLUDING. The words `and including' following a description do not necessarily mean `in addition to,' but may refer to a part of the thing described. 221 U.S. 425." And, in everyday life, the meaning of these words is a RESTRICTIVE one, not an EXPANSIVE one.

Read the American College Dictionary:"include, v.f.;-cluded, -cluding. 1. to contain, embrace, or comprise, as a whole those parts or any part or element."

"included, adj. 1. enclosed; embraced; comprised. 2. Bot. not projecting beyond the mouth of the corolla, as stamens or a style." Note that here, even the Botanical meaning is a confining use!

Now, Roget's Thesaurus:"include, v,f. comprise, comprehend, contain, admit, embrace, receive; enclose, circumscribe, compose, incorporate, encompass; recon or number among, count in; refer to, place under, take into account." So, when you see "including" or "includes," whether in normal usage or in a Federal Tax Law, understand that it is limited to the items spelled out in the Law.

Why is our Tax Code so complicated?Why do we have a 9,000 page Income Tax law that can't even define what it is taxing? The term INCOME is NOT defined, anywhere in the Internal Revenue Code!

If it is LEGAL, there is no reason why the Internal Revenue Code shouldn't be just a couple of pages long, and state clearly what is being taxed!

After all, the Income Tax in other countries is really very straight-forward. Take, for example, the PERSONAL INCOME TAX LAW OF MONGOLIA listed below.

If the Tax Code for a backward, primitive society like Mongolia can be so simple and understandable, what is the reason for how difficult and complicated the Tax Code for a sophisticated and advanced society like the United States is?

Perhaps, it's because it's purpose is to confuse and befuddle Americans so that they can be tricked into paying a tax for which they have NO liability!

How many times have you heard a politician tell you that the Income Tax Code was so confusing "...nobody can understand it!"? Well, have YOU tried to read it? With a little practice, it isn't all that difficult. But, the "powers-that-be" want you to believe that it is incomprehensible.

Perhaps the only reason Title 26 U.S.C. (the Internal Revenue Code) is such an enigma to millions of Americans is because it is intended to perpetrate a FRAUD upon the American people!

 

PERSONAL INCOME TAX LAW OF MONGOLIA

(Unofficial translation from Mongolian)

Article 1.

The purpose of the present Law is to impose taxes on personal income and to regulate relations arising from the payment of these taxes to the budget.

Article 2.

The legislation of personal income tax comprises of the General Law of Taxation, the present Law and the other legislation. Article 3. Taxpayer

1. A citizen of Mongolia and a foreign resident and a foreign person without citizenship of Mongolia shall be the Taxpayer. 2. A person staying in Mongolia for 183 days and more shall be considered to be a resident to Mongolia. 3. A resident taxpayer shall pay taxes on income from sources within and outside of Mongolia. 4. A non-resident shall pay taxes on income from sources within Mongolia. 5. A Taxpayer who has taxable income shall register with the State Tax Administration and to get the registration number.

Article 4.

1. The tax is imposed on the following annual income of taxpayer: 1) Wages and salaries, other incomes identical to them: a/ Wages, salaries, bonuses, allowances and other income identical to them, earned in a form of main job at the economic entity and organization by a labor contract; b/ Wages, salaries, bonuses, allowances and other income identical to them from the work and service rendered to economic entity, organization and individuals under contract outside the main job; c/ Pension, additions to pension and allowances; 2) Income from self-employment; 3) Income from proprietorship; 4) Income from side business; 5) Capital gains and income from rights: a/ Income from sale of dividend, securities, immovable property and other income identical to them; b/ Dividend, income of a participant, interest on bank deposits, income from leasing assets and other income identical to them;

6) Author's awards; 7) Other income except exempted from taxes by this law.

Article 5.

The definition of taxable income is the following: 1) Salaries, wages and other income identical to them: a) Taxable income is the total income indicated in subparagraph 1(a) of paragraph 1 in Article 4 of the present Law; b) Taxable income is the total income indicated in subparagraph 1(b) of paragraph 1 in Article 4 of the present Law; c) Taxable income is the total income of pension, additions to pension and allowances; d) In the case of service and work done by a family or a group of people on a contract, taxable income is defined by themselves, if it is impossible to define for each individual involved; 2) Income of self-employed and proprietorship. a) Taxable income of self-employed is defined by deduction of expenses confirmed by the documents from income as (raw material, basic or auxiliary materials, semi-processed products, steam, water, energy, fuel, petroleum, spare parts, package, wrapping material's expenses, payment for leasing and interest on bank loan, purchase price of goods, social insurance premiums); b) Taxable income of proprietorship is defined by deduction of expenses confirmed by the documents from income as (raw materials, basic or auxiliary materials, semi-processed products, steam, water, energy, fuel, petroleum, spare parts, package, wrapping material's expenses, payment for leasing and interest on bank loan, payment for work and service done by the other, depreciation and social insurance premiums and business trip expenses), transport facilities and vehicles tax excise tax and payment for use of natural resource; Wages distributed to a member of family are deducted according to the ratio of paid social insurance premiums as expenses. In the case when self-employed person uses a position from his produced products and furnished service for his family needs, those products and service are not deducted as expenses; c) Taxable income of private farms running pig, poultry, rabbit, and bees, other farms identical to them; agricultural and other private businesses, is defined in conformity with paragraph 2(a) and (b) of the present Article by themselves. In the case when taxable income is impossible to be defined or was not defined by a taxpayer, the Tax Administration should define taxable income taking into consideration the natural, climatic and market conditions and the assessment of similar products; 3) Capital gains and income from rights: a) Taxable income is defined by deduction of purchase price or cost of construction connected with, from income of sale of immovable property; b) Taxable income is defined by deduction of initial purchase price of, from sale of shares; c) Taxable income is defined by the total income from leasing property; 4) Taxable income is defined by the total income from dividend, the total income of a participant and the total income from interest on bank deposits;

Article 6.

Taxable income of a citizen from livestock production, who has private cattle's is defined by shifting herds of livestock to cattle herd. A cow, a horse, a camel is each equal to a cattle herd; and 9 goats and 7 sheeps are equal to a cattle herd.

Article 7. Tax Rate

1. The taxes imposed on the total income indicated in subparagraph 1-4 and 7 of paragraph 1 in Article 4 of the present Law and the total income of leasing property at the following rates: -------------------------------------------------------------------------------------------------------------------- Amount of annual

taxable income Tax rate -------------------------------------------------------------------------------------------------------------------- 24001-48000 2% 48001-96000 480 tgs plus 5% of the amount of income exceeding 48000 tgs 96001-192000 2880 tgs plus 15% of the amount of income exceeding 96000 tgs 192001--384000 17280 tgs plus 27% of the amount of income exceeding 192000 tgs 384001-768000 69120 tgs plus 40% of the amount of income exceeding 384000 tgs 768001 and above 222720 tgs plus 45% of the amount of income exceeding 768000 tgs -------------------------------------------------------------------------------------------------------------------- 2. The government shall change the amount of annual taxable income considering the growth of the price level. 3. The State Ih Hural shall define the amount of taxes imposed on taxable income of a citizen, who works abroad and gets salaries from the State, on the proposal of the Government.

Article 8.

The special rates of taxes are the following: 1) Remuneration for scientific, literary and art work, rights of patent and author, invention, innovation and design, estimated at up to 60000 tugriks, shall be taxed at the rate of 5%; 2) In the case when shares are sold through the Stock Exchange, tax on income is 10%; otherwise is 2% of the sale; 3) Tax on income from the sale of immovable property is defined at the following rates considering the period of the property used by its owner: a) up to 2 years use - at 40% b) 2-5 years use - at 30% c) over 5 years use - at 20% 4) Tax on dividend from shares and income of a shareholder is 15%; and tax on income from interest on bank deposits is (?).

5) Tax on income from livestock production of a cattle-breeder, who has private cattle as defined in Article 6 of the present Law is 50 tugriks for a herd.

Article 9.

1. The following income of taxpayer is exempted from taxes: 1) Salaries, wages, pension allowances and other income identical to them up to 24,000 tgs; 2) Allowances for temporary loss of working ability, except pregnancy and birth allowances, awards for the orders of "Hero Mother" I and II grade, pension for Veterans of the People's Revolution, allowances for participant of the Khalkhin Gol War in 1939 and Liberation War in 1949, allowances fro child support; 3) The State Prize and honorary prizes of Mongolia, an award for a people's and honor title owner, an award for innovation, subsidies for a blood donor and milk, expenses for business trip; 4) Pension and refund for damage of the insured; 5) Refund on the government loan and income on interest; 6) Prices for labor protection clothes, milk, and cost of uniform and other supply cost identical to them in conformity with the legislation, grants guaranteed to citizen by the Government and local government, Red Cross Society and foreign countries for an accident and an urgent condition; 7) 2 herds for a member of a family which has private livestock. In the case of loss of a number of taxable livestock in the tax year because of climate catastrophes, an accident and infectious diseases, the tax on them will be exempted on the basis of the appropriate documents; 8) Income from manufacturing artificial organs, prosthetic appliances and techniques for disabled persons by self-employed persons and proprietors. 2. Income of a self-employed person or a proprietor is credited against taxes at the following rates: 1) Income from manufacturing cereals, flour and bread is credited by 50%; 2) If disabled persons of group I and II for being deaf, blind and without leg who are employed in proprietorship, the tax on income is reduced by ratio of disabled persons in its working forces.

Article 10.

1. Economic entity and organization should impose taxes on income indicated in subparagraph 1, 6, 7 of paragraph 1 in Article 4 of this law at the rates defined in paragraph 1 in Article 7 and in paragraph 1 in Article 8 of the present Law. Income indicated in subparagraph 1 "b" of paragraph 1 in Article 4 of the present Law will be withheld at the rate of 3.5%. When economic entity and organization gives any income to a citizen, they will assess and withhold taxes on that income and will fix these taxes in the assessment list. Each economic entity and organization will withhold taxes on income given to a citizen worked on a labor contract at the end of every month.

These taxes are assessed annually and fixed in the assessment list. Withholding taxes imposed on income of a citizen by economic entity and organization should be transferred to the budget on or before the 10th of the next month. If the amount of withheld taxes is less than 1,000 tgs, withheld taxes will shift to the next month payment. 2. When each commercial bank calculates interest on deposits of a citizen, it should withhold and transfer taxes to the budget at the rates indicated in paragraph 4, Article 8, of the present Law. 3. When each economic entity and organization gives dividends on shares and income of a participant, they shall withhold and transfer taxes to the budget at the rates indicated in paragraph 4, Article 8, of the present Law. 4. Stock exchange will withhold and transfer taxes on income from sale of shares traded through stock exchange to the budget at the rate indicated in paragraph 2, Article 8, of the present Law. 5. A taxpayer should assess his/her income and pay his/her taxes in the following terms: 1) A citizen, who has private livestock, pays taxes on or before the 25th of July and on or before the 15th of December (twice a year) dividing his/her taxes, to the budget. Tax Administration may come into an agreement with a taxpayer to pay his taxes in advance. A citizen, who has private livestock, should pay his/her taxes to the budget of local government in the territory of which the cattle are located; 2) Within 10 days after the sale - taxes on income from sale of immovable property; 3) On or before the 15th of the first month of the next quarter - taxes on income from lease of property; 4) Within 10 days after the sale - taxes on income from sale of shares outside the Stock Exchange; 5) A self-employed person and a proprietor shall calculate taxes on their income each quarter at the rate indicated in paragraph 1 in Article 7 and pay their taxes to the budget; 6) If a citizen gets income from more than one economic entity and organization indicated in subparagraphs 1- 4 and 7, and in subparagraph 5 (b) of paragraph 1, Article 4, of the present Law, he/she will pay his/her taxes annually by self-assessment list based on his/her income.

Article 11.

1. The tax return indicated in paragraphs 1, 2, 4 and subparagraphs 3, 5 of paragraph 5, Article 10, of the present Law should be submitted on or before the 10th of February of the next year and the tax return indicated in paragraph 3, Article 10, should be submitted on or before the 10th of April of the next year to the Tax Administration. 2. Tax return indicated in subparagraphs 2, 4 of paragraph 5, Article 10, should be submitted within 15 days after the tax payment. 3. Income and self-assessment list indicated in paragraph 6, Article 10, of the present Law should be paid and submitted on or before the 1st of February of the next year to the Tax Administration. 4. The Minister of Finance will approve forms for returns on income, taxes and self-assessment.

Article 12.

1. The present Law comes into force from January 1, 1993. 2. The provision for taxation of interest income on bank deposits shall come into force from January 1, 1995. Chairman, State Ih Hural of Mongolia N. Bagagbandi

General Secretary, Office of the State Ih Hural of Mongolia N. Rinchindorj

November 23, 1992 Ulaanbaatar City

_________________________________________

 

 

Entry into Force
Term of Submitting Return
Imposition and Payment of Tax
Tax Exemption and Credit
Special rates of taxes
Definition of Taxable Income of a Private Cattle-breeder
Definition of taxable income
Taxable Income
Legislation of Personal Income Tax
The Purpose of the Law
, January-December 1927, and some 80 court cases have adopted the restrictive meaning of these terms.
-- P. T. Barnum
 The "SHADOW" States of the Buck Act

 

Federal areas; sales and use tax"

"(a) No person shall be relieved from liability for

payment of, collection of, or accounting for any sales

or use tax levied by any State, or by any duly

constituted taxing authority therein, having jurisdiction

to levy such tax, on the ground that the sale or use, with

respect to which tax is levied, occurred in whole or in

part within a Federal area; and such State or taxing

authority shall have full jurisdiction and power to levy

and collect any such tax in any Federal area, within such

State to the same extent and with the same effect as

though such area was not a Federal area."

"Irrespective of what tax is called by state law, if its

purpose is to produce revenue, it is income tax or receipts

tax under the Buck Act [4 U.S.C.S. sections 105-110]."

 

or acquired by or for the use of the United States or

any department, establishment, or agency of the United

States; any federal area, or any part thereof, which

is located within the exterior boundaries of any State,

shall be deemed to be a Federal area located within such

State."

 

of the United States."

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