Universal New Tax System (UNTS)
Real-time tax and artificial intelligence transform the global tax landscape, which aims to create justice, equality, health and welfare in a sustainable society.
UNTS is a groundbreaking revolutionary universal new tax system, designed to adapt to the future requirements of AI tax administration. UNTS exchanges interoperable data in real time and is designed to dynamically adapt to the new digital possibilities with AI tax administration, where taxation is settled in real time between taxpayers and the public authorities.
This transformative tax system, known as the Universal New Tax System (UNTS), is designed to achieve a balance between individual rights and societal obligations to promote equality, health, well-being in an environmentally friendly, sustainable society, as the overall purpose of Universal New Tax System (UNTS)
UNTS is unique in its ability to dynamically adjust tax rates in real time. This flexibility enables the tax authorities to react quickly to changing economic and social conditions and ensure that tax policy is always adapted to society as best as possible.
UNTS has 2 tax channels: Tax channel 1, with three tax categories, each of which has its own operational tax rate. Tax channel 2 for consumption taxation of goods and services, with unique and aggregated tax rates for each good or service, which can be regulated individually in real time within the framework of the law. This flexible real-time adjustment andsimplification is achieved with two tax channels:
Tax channel 1, with three tax categories. each with its own operational tax rate, calculated to:
1. Private and salary income.
2. Capital savings and private housing.
3. Business operations and investments.
Tax channel 2 for consumption taxation of goods and services, with unique and aggregated tax rates for each good or service, which can be regulated individually in real time within the framework of the law.
This innovative simplification of the tax system gives the tax authorities flexible options to regulate the tax in real time. Capital income taxation and consumption taxation can be targeted in real time towards a just society with a healthy lifestyle. Results of changed tax rates will be able to be analyzed and adapted in real time, to counteract the negative and promote the positive impacts on society.
Tax Channal 1
Tax channel 1 tax category 1 with account for taxed private income and salary: Taxable private income and salary are subject to ordinary taxation. The social income balance is achieved by making the necessary private basic income tax-free per month per person. Private taxed funds in tax category 1 can be transferred to tax category 2 for saved capital and private housing or to tax category 3 intended for investment and business capital, the transferred amount is added a percentage amount according to the tax percentage in tax tax category 1, in the event of a refund, a fee is paid according to the applicable tax rate in tax tax category 1.
Tax channel 2 for individual tax rates on all goods and services.
Tax Channal 2
Different aggregated tax rates, which add up to the total tax rate for each item or service.
1. Tax rates are aggregated and unique for each goods or service. These tax rates are contained in each goods or service’s data batch, which is a unique to UNTS tax system. The purpose of this composition of different tax rates in each item or service number is to target the taxes so that they meet UNTS’s overall taxation objectives. Import duty is settled at the customs border according to the applicable duty rate in the associated data batch for each product or service. The regulation of the data batch tax rates can be adjusted in real time, which is a political task where AI will be of great help in advancing UNTS objectives.
2. UNTS’ overall purpose of aggregating different tax rates across all goods and services is to target taxes towards improving health, environment, equality, global peace and freedom, giving governments opportunities to change taxes in real time. The tax is charged automatically when goods and services are transferred from a company to a private consumer or when purchased for public use, as well as resource taxation when exporting environmentally harmful products and raw materials. The sales terminal transfers the tax of the product or service to the public tax account of the point of sale in real time.
3. This simplification of the taxation of goods and services, which separates untaxed funds in business and taxed funds for private or public use, as well as taxation of exports of products and raw materials that burden the domestic environment, is a win-win for society, the taxpayer and the tax authorities, as it improves and simplifies tax control and administration in accordance with the legal basis. The authorities can adjust the tax rates for these three categories and adjust the different tax rates for each product and service, ensuring that the UNTS is responsive to changing economic, political and environmental conditions.
4. An example of an aggregated data batch for a good or service that contains all the necessary data for taxation and public subsidies: The process of aggregating data involves combining individual data points or records into a single data batch, summarized representation for each item or service.
Data fields – 1-Start code: 2-country of origin: 3-commodity codes HS tariff: 4-manufacturer no.: 5-product group: 6-product number: 7-product name: 8-service group: 9-service number: 10-service name: 11-import country: 12- import duties: 13-environmental tax: 14-health tax: 15-recycling tax: 16-climate tax: 17-durability tax: 18-security tax: 19-public subsidy tax: 20-public subsidy area: 21-public subsidy group: 22-information about the product or service.
5: All data in the data batch can be displayed as a QR code, which can be used for reading and forwarding to other systems, e.g. for information, payment, and invoicing. The price of goods or services will not be included in the data batch but will be supplemented with price data which appears as a barcode on the product, shelf fronts and invoices etc.
6. Data in the QR code contains the total taxes and information administered by the UNTS tax system and can be communicated to the user via signs, shelf fronts and by being applied to invoices, payment notices etc., which are supplemented with the current price. When selling, the selling company receives the sales price + taxes on goods or services and transfers the taxes in real time to the company’s tax account in the UNTS system.
7. Import duties are charged in real time at the customs border and are calculated according to the applicable tariff which is contained in the current goods or service batch number.
8. The import tax is not included in the total sum of taxes, but is collected in real time when crossing the customs border. The purpose of import taxes is to maintain and optimize domestic production. Bilateral agreements, balance of trade, production methods and substitution will have an impact on the size of the import duty.
Import duties are charged in real time at the customs border and are calculated according to the applicable tariff which is contained in the current goods or service batch number, and are determined by data of individual goods, product groups, manufacturers and by country of origin. Settlement takes place automatically at the customs border by scanning the QR code for the batch number of the various goods and the QR code for the exporter and importer. When exporting natural resources environmental tax may be charged. If imported goods or services are exported, the import duty paid can be refunded.
If the customs documents do not have QR codes, the importer must complete the customs documents in UNTS before the products can be released.
The purpose of the environmental tax is to minimize the burden on the country’s and the global environment and at the same time promote environmentally sound domestic products. Exploitation of natural resources and other environmentally harmful factors in the country of production is subject to environmental tax. The environmental tax can be imposed on domestic sales as well as exports and is collected in real time on individual goods, product groups, producers and by country of origin, as well as when environmentally harmful products and raw materials are exported.
The purpose of the health tax is to promote public health. An increased tax on unhealthy foods and the introduction of a sufficiently low price or subsidy on health-promoting foods, which increases public health and reduces health costs, as well as promoting the domestic production of organic healthy foods. The health tax can be introduced on the individual products, product groups, manufacturers, sub-suppliers or the country of origin.
The recycling tax aims to promote recyclability by imposing an increased tax on non-recyclable products and a lower tax on products designed for easy recycling. This strategy minimizes environmental impact, saves on raw material extraction, reduces national costs, boosts domestic employment, and maintains affordable prices for new goods. The recycling tax can be introduced on the individual products, product groups, manufacturers, sub-suppliers or the country of origin.
The climate tax’s purpose is to endorse products that are environmentally friendly and contribute to restoring global climate balance. Increased taxes on products causing pollution and global warming, alongside lower taxes on eco-friendly alternatives, can mitigate global warming. This tax strategy reduces national costs, inspires the development of climate-friendly products, and minimizes environmental damage. The climate tax can be introduced on the individual products, product groups, manufacturers, sub-suppliers or the country of origin.
The durability tax aims to extend product lifetimes and reduce natural resource consumption. It imposes higher taxes on products with a high resource-to-lifetime ratio and lower taxes on high-quality, long-lasting products, and on product with a modular structure enhancing repairability further reduces consumption costs and environmental impact. The durability tax can be introduced on the individual products, product groups, manufacturers, sub-suppliers or the country of origin.
The Global Security Tax seeks to promote global human rights, peace, equality and prosperity. This is achieved by completely banning imports or increasing taxes on products, imported from countries that violate human rights. These ban or taxes can motivate countries to improve human rights and promote peace and democracy. Bans or taxes may be introduced for individual products, product groups, manufacturers, sub-suppliers or imposed on the entire country of origin.
The public grants group aims to simplify and target public grants to promote equal welfare. By reducing taxes on essential products for low-income people and potentially providing subsidies, this tax strategy supports financial equity, which allows for the regulation of taxes and the allocation of public assistance to selected population groups or residents of selected local areas. The system is designed to send subsidies back to the point of sale or payment terminal instead of taxing certain essential products.
9. Tax rates or subsidies can be set to support equality in welfare by minimizing taxes or transferring a subsidy to goods or services that promote health and welfare. It can be regulated for individual products, product groups, services and targeted to specific recipient groups, based on ID information on the payment medium.
10: The UNTS system can integrate with public benefits and grants, allowing for the regulation of taxes and allocation of public assistance to selected population groups. Tax rates can support welfare equality by minimizing taxes or transferring subsidies to health and welfare-promoting goods or services. The subsidy from the UNTS tax system is transferred in real time, and AI controls ensure proper use of these subsidies.
11: “The integration of UNTS with public services and benefits is a groundbreaking component of its success,” said Reeh. “It ensures that our tax system works in real time to promote the well-being of all individuals. With UNTS, financial navigation, AI control systems, and a transition to a cashless society, tax administrative burdens will be significantly minimized for public tax authorities and completely removed for private taxpayers and the majority of companies. Companies with tax-free storage will be required to join the UNTS module for stock control. For larger companies with several departments, additional control modules may be needed.
12. Companies that resell products and services for both private and commercial use must keep stock accounts for both groups:
Calculation method for companies processing products for resale:
The quantity of all raw materials included in the total processed product is scanned into UNTS with associated QR codes.
A data batch is created in UNTS for the entire product, either as a one-time product or a record for future use.
Export companies that process and manufacture products for export can, after calculation, have the paid import tax refunded, which has been paid for the products that are part of the total product or service for export.
The inventory account for raw materials and finished goods:
The inventory account for raw materials and finished goods is updated when raw materials are used for processing new units of goods or are used for internal consumption in the company or taken out for private consumption.
Non-saleable products:
Non-saleable products must be registered and handed in for recycling.
UNTS tax and administration system for citizens, companies, and public institutions
13: The user interface (UI) for UNTS tax and administration system is an APP designed with profile setup for citizens, companies, and public institutions. The APP simplifies and adapts the UI to individual needs. For businesses with tax-free inventory, an inventory management module is added in the app’s profile setup. RUNTS can integrate with various systems, facilitating real-time tax settlement.
UNTS-Tax System APP. (UNTS APP)
Configure UNTS APP?
UNTS-APP is the entry portal for all postings that include taxes to society, the taxpayer can follow all public payments, which are settled automatically in the UNTS APP.
In the profile setup of the APP, checkboxes are enabled for:
Private citizen 2. Association – Cooperative. 3. Public institution. 4. Domestic business enterprise. 5. Multinational company.
Companie
Companie with tax-free warehouse storage.
Importer – Exporter.
The APP will then activate the associated modules and connect them with ID data for the private person, associations, public institutions and companies, which is transferred automatically from the personal and company register.
When a bank account is created as a RUTS bank account in a private bank, it will automatically be linked to the lifetime account in the RUTS system.
Functions that can be performed in UNTS-APP:
For individuals, associations or public institutions that are not traders, all tax postings will be made automatically. The citizen will be able to follow his tax payment and his overall financial status on the app, in real time.
Companies must activate a storage module, where all the company’s assets, sales of products and services are registered.
If the company is an importer or exporter, the foreign trade module must be activated.
The UNTS APP can be installed on a desktop, tablet and smartphone, and can be used for sales and purchases with automatic inventory update, allowing the small business owner to run his business with a tablet or smartphone. The larger business operator can integrate UNTS with their point of sale terminals, whereby the fiscal updates can be performed automatically.
Secure online bank payments through the UNTS system:
The account holder must enable a checkbox for . Xs– in the UNTS setup, which only allows online bank transfers to account numbers marked with . Xs– all other account numbers will be rejected.
The receiving account holder’s bank will mark the account numbers approved by the bank as extra secure . Xs– which means that the bank guarantees repayment of the transferred amount if a transfer turns out to be a mistake or illegal etc.
All public online bank accounts will be Xs– marked and guaranteed by the country’s national bank.
If a receiving account number is not approved and thus not marked with . Xs– by the recipient’s bank, the account holder can approve the payee’s account number himself, by creating the account number in his own whitelist in UNTS, whereby the account number is marked as extra secure with . Xs– mark, which means that the account holder hereby waives the bank’s guarantee for chargebacks in the event of illegal transfers and thus assumes the financial responsibility for online bank transfers to this whitelisted account number.
Three tax accounts, which are synchronized with lifetime accounts in the country’s national bank:
14: UNTS automatically creates the three tax accounts, which are synchronized with three bank accounts in the country’s national bank, as lifetime accounts for each individual citizen, company or public institution. The three tax accounts handle taxation in the three tax categories in tax channel 1:
1. Lifetime account synchronized with tax account for taxed funds – private income and salaries.
2. Lifetime account synchronized with tax account for untaxed capital savings for private housing and pension.
3. Lifetime account synchronized with tax account for investments and business capital.
The lifetime bank accounts at Danmarks Nationalbank are connected to private bank accounts, and show in real time the updated balances from the connected private bank accounts.
UNTS gives taxpayers access to an overview of tax calculations and relevant information. Users can monitor their financial balance with the public sector in real time and avoid reporting and readjustment of taxes.
Advantages:
Universal New Tax System (UNTS)
Real-time tax and artificial intelligence transform the global tax landscape.
The UNTS tax system offers several advantages:
Dynamic adjustment of tax rates and taxes on goods and services in real time.
Simplified taxation with three tax rates and one data batch type for all goods and services.
Integration with public services for efficient resource allocation.
Reduced inequality by providing tax relief and subsidizing basic goods.
Enables targeted taxation and allocation of public subsidies.
Reduces administrative burdens for both tax authorities and taxpayers.
Real-time tax collection and AI control systems to combat tax evasion and corruption.
Integration with various systems for easy data exchange and real-time tax settlement.
Overall, UNTS is a revolutionary innovation in public administration, streamlining tax processes, and promoting financial transparency for citizens, companies, and public institutions.
Universal New Tax System (UNTS)
Q&A
1. What is the main purpose of (UNTS)?
Answer: The main objective of UNTS is to create a real-time and simplified tax system that purposefully brings justice, equality, health, and welfare to a sustainable society. It is designed to dynamically adapt to the future digital development of a universal AI tax system and ensure a balance between individual rights and societal obligations.
2. How does UNTS ensure socially fair taxation?
UNTS has two tax channels which can be regulated and taxed within the framework of the law:
Tax channel 1: Socially fair taxation is achieved by introducing a tax-free basic income for all taxpayers and a reasonable proportional gross taxation of private income, wages, profits on assets and companies and investments. The income, salary and profit are taxed when transferred to a private account.
By setting the tax-free basic income at an amount that exempts low-income groups from income tax and by taxing junk food and reducing taxation or subsidizing the purchase of healthy foods, a fair and health-promoting taxation can be a win-win for the whole society.
The tax administration can regulate the tax-free basic income and taxation in three tax categories: 1, private income and salary 2. profit on housing and savings 3. profit on companies and investments.
Multinational companies can receive subsidies for investments if taxed funds are used, and earned profits can be reinvested tax-free. Invested transferred amount, minus subsidy, can be repatriated tax-free. Transferred profit is taxed according to the same rules as national investors or by bilateral agreements.
Tax channel 2. Tax percentages and subsidies on goods and services, which are transferred when selling each product unit or service, as well as when regulating taxes or providing subsidies for each individual product unit/service or product/service group.
3. How does UNTS achieve real-time adaptation to changing economic and social conditions?
Answer: UNTS achieves real-time adaptation by dynamically adjusting tax rates. This flexibility enables tax authorities to respond quickly to changing economic and social conditions and ensure that tax policy is in line with society’s needs.
4. How does UNTS simplify the taxation of goods and services?
Answer: UNTS simplifies the taxation of goods and services by aggregating taxes and information for each product or service in a unique data batch. This batch is used for real-time taxation when goods and services are transferred from companies to individuals. Imported goods are subject to import duty, which is paid by the importing company before the products can be delivered to the company, the products will then be taxed under the same conditions as domestically produced products.
Businesses must add the products to their inventory and private consumer must pay import and domestic consumption tax before the product can be released to the individual consumer.
5. How does UNTS protect against competition from imported products that are substituted or if the production is harmful to the local or global environment?
Answer: Products imported from countries that are subsidized orproduced under environmental and other burdensome conditions may be subject to an import ban to protect domestic products. This import ban applies to both companies and private consumer.
6. How does UNTS ensures that tax is paid in real time for private online trading?
Answer: When domestic business operators receive payment by credit card or bank transfer from private customers for products or services, the tax is calculated according to the sum of all taxes in the data batch, and the total sum of all taxes will be transferred to the public account for the company’s taxes and the remaining amount will be deposited on the company’s bank account. The data batch follows invoicing and payments as QR data, the data content of which can be scanned and forwarded to other systems.
7. How does UNTS ensure that tax is paid for private individuals’ foreign online shopping?
Answer: UNTS calculates tax for foreign e-commerce according to the same method as domestic e-commerce, but first the product-specific data batch must be updated with an international HS tariff code, here a data batch is generated for the imported unit. If the foreign online store is registered in UNTS, taxes are calculated automatically; otherwise, the buyer must enter product information.
RUNTS calculates a total tax for each item or service according to the total sum of all taxes in each data batch with HS code, the seller specifies for each product.
The total tax amount is transferred via the buyer’s tax account in UNTS to the connected public tax account, the remaining amount is transferred to the seller’s foreign bank account for the webshop.
8. How do you ensure correct stock registration of goods and services when buying and selling business-to-business?
Answer: Goods and services business-to-consumer and business-to-business transactions must be registered with their own data batch number. UNTS storage module automatically registers arrivals and departures, both when transitioning to private, public institutions and for companies.
9. How does UNTS avoid transfer pricing and profit shifting on imported goods and services?
Answer: Multinational companies pay tax on the difference between a basic and invoiced price when exporting or importing to/from an economically connected foreign company. AI calculates base prices and incorporates them into data batches, preventing transfer pricing and profit shifting.
For export, tax 3 is paid on the difference if the selling price is below the current base price.
When importing, tax 3 is paid on the difference if the purchase price is above the current base price.
10. How does UNTS tax capital gains earned by multinational corporations?
Answer: Profits earned on business investment are tax-free if they remain in the domestic business or are used for further investments. Tax is paid when profits are transferred abroad after taxation of business and investments tax category 3 or according to a bilateral agreement with the recipient country or a separate agreement with the individual multinational company.
11. How does UNTS tax capital gains earned in foreign investments?
1. Private investments abroad: Foreign investments are considered business investment, therefore private individuals must first transfer the capital they wish to invest to Investment and business capital tax category tax-3. which means that the amount is added to the private tax paid. When the transferred capital is invested abroad, taxation will be processed and taxed according to rules that apply to business investments abroad tax category tax-3.
2. Business investments abroad: Repatriation of the invested amount can be transferred tax-free to tax category 3 and profits that are repatriated pay tax according to tax category 3, losses cannot be offset against other domestic business capital, but losses can be offset against profits from foreign investments. Earned foreign stock dividends or capital gains or profits on investments are taxed when they are transferred from tax category 3 to privately taxed capital Tax category 1 – tax 1.
12. How does UNTS tax investments and the use of cryptocurrency as a means of payment?
Answer: Private capital category 1 tax-1 must first be transferred to is separate sub-account in business category-3 tax-3 before cryptocurrency can be bought and sold. The amount transferred to the sub-account can be returned untaxed to private capital Tax category 1. Profits earned on crypto-investments can be deposited as corporate capital tax category-3 tax-3, and are taxed only when they are transferred to privately taxed capital tax. category 1 – tax 1. Losses on crypto investments cannot be offset against other business capital.
In the case of commercial use of cryptocurrency for the purchase and sale of products and services, the amounts must be updated in UNTS business category-3 tax-3, according to current tax rules for cryptocurrency and the inventory management system must be updated.
13. What is the role of AI in the regulation of UNTS tax rates and overall administration?
Answer: AI dynamically adjusts tax rates in real-time to align with societal goals. AI control systems monitor transactions in real-time, allowing for proactive alerts to prevent tax evasion and corruption.
AI plays a crucial role in regulating UNTS tax rates in real time, assisting in fulfilling society’s objectives. The AI control system aids in promoting health, environmental goals, equality, global peace, and freedom by adjusting tax rates dynamically.
14. How is UNTS integrated with public services and subsidies?
Answer: UNTS integrates with public services and subsidies through unique identifiers in data batches for each product or service. These identifiers allocate subsidies to selected population groups, facilitating targeted public subsidies and efficient resource allocation.
15. How can UNTS reduce the public’s and citizens’ healthcare costs and at the same time prevent and improve the general state of health of the country’s population?
Answer: UNTS enables dynamic real-time adjustment of tax rates on unhealthy foods to promote a health-promoting lifestyle. This can minimize healthcare costs and improve the overall health of the population.
UNTS can introduce taxes or subsidies in real time on all goods and services which aim to influence a health-promoting lifestyle. An evaluation will, within a very short time, be able to measure the impact on the purchase of healthy food and, in the longer term, on the population’s general state of health as well as the minimization of healthcare costs.
16. How can UNTS continuously reduce the global lifestyle that leads to obesity, diabetes, cardiovascular disease, and cancer?
Even before pregnancy and throughout life, a healthy lifestyle is important. UNTS can target taxes and subsidies that promote healthy lifestyles, thereby making it possible to prevent unhealthy lifestyle diseases in the population in time. The gains from increased quality of life and reduced healthcare costs, as well as the benefits of the societal efforts from a healthy and well-functioning population, will far exceed the efforts that are rightly made by lowering taxes and implementing targeted subsidies to prevent unhealthy lifestyles and the resulting lifestyle diseases.
17. What advantages does UNTS offer to taxpayers and public authorities?
Answer: UNTS offers real-time dynamic adjustment of tax rates, a user-friendly tax and administration APP, a central database with a connected lifetime account, simplified taxation, real-time financial navigation, integration with public services, reduced administrative burdens, and promotion of equality.
18. How does UNTS detect attempts at tax evasion and corruption?
Answer: UNTS uses AI control algorithms to detect tax evasion and corruption by scanning all transactions in real-time. Proactive alerts are sent to taxpayers to prevent potential fraudulent activities.
19. How does UNTS address tax evasion by individuals?
Answer: UNTS utilizes AI control algorithms for real-time financial navigation to automatically detect and prevent tax evasion attempts by individuals.