Press Release for immediate publication.
Xsecure.dk, Aalborg, Denmark – 2024
Universal New Tax System (UNTS)
Real-time tax and artificial intelligence transform the global tax landscape.
Today marks the launch of the Universal NewTax System (UNTS), a groundbreaking and transformative tax system designed to bring justice, equality, health, and welfare to a sustainable society.
UNTS is specifically crafted to adapt to the future requirements of an AI-supported tax administration, fostering a real-time and dynamic tax settlement between taxpayers and public authorities.
Key Features: UNTS is a revolutionary tax system designed to dynamically adjust tax rates and collect tax in real time, ensuring responsiveness to changing economic and social conditions. These functions enable the tax authorities to quickly adapt to the current needs of society.
Taxation Channels: With UNTS, there are only two taxation channels:
Tax Channels 1:
Tax channels 1: UNTS uses tax channel 1 with three tax accounts, each with its own tax rate:
- Tax account-1 for personal income and salaries:
- Tax account-2 for private housing and savings:
- Tax account-3 for business operations and investment.
This innovative approach enables flexible and real-time regulation of the three tax rates.
Tax Channels 2:
The second taxation channel with operational aggregate tax rates for each good and service, which are transferred in real time to the seller’s tax account when products are transferred from business to private or public consumption. Import duty on goods and services is paid in real time upon border crossing.
Business operators are obliged to keep a stock account in UNTS, of tax-free goods handling as well as the company’s inventory and production equipment, which exempts companies from value added tax and traditional tax accounting.
UNTS uses a unique data batch: Product and service,which containing different tax rates for each product and service, which the tax authorities have statutory access to adapt in real time, for UNTS’ welfare purposes.
Tax rates and other information can be changed in real time in each data batch and displayed as a QR code, intended to facilitate the dissemination of data to users and other systems.
Unique Tax Rates: UNTS introduces different tax rates for each product or service, aggregated and summarized in a data batch. This enables targeted taxation to support overarching objectives such as health, environment, equality, global peace, and freedom.
Three tax accounts, which are synchronized with lifetime accounts in the country’s national bank:
UNTS automatically creates the three tax accounts, which are synchronized with three lifetime bank accounts in the country’s national bank, which are accounts for each individual citizen, company or public institution.
The three lifetime bank accounts are synchronized with the three tax accounts created in tax channel 1:
- Lifetime Account 1: Synchronized with tax account for taxed funds – private income and salary.
- Lifetime Account 2: Synchronized with tax account for untaxed capital savings for private housing and pension.
- Lifetime Account 3: Synchronized with tax account for investments and business capital.
The lifetime bank accounts in the country’s national bank are linked to private bank accounts, and all accounts show real-time balances in UNTS, with total balances for all 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.
Integration with Public Services: UNTS seamlessly integrates with public services and subsidies calculated by unique identifiers in data batches, allowing for targeted subsidies to selected population groups and efficient resource allocation.
Reduction of Administrative Burdens: The system simplifies tax administration by introducing gross taxation, eliminating tax deductions, and reducing time spent on tax reporting. This not only benefits the tax authorities, but also minimizes administrative burdens for private, public institutions and companies.
QR Code Technology: All data in the data batch can be displayed as a QR code, facilitating easy reading and forwarding for information, payment, and invoicing purposes, as well as increases the transparency and efficiency of financial transactions.
Advantages for Taxpayers and Authorities: UNTS has real-time dynamic adjustment of tax rates, with a user-friendly tax and administration APP that offers a user-friendly interface with a profile setup that adapts the necessary functions to citizens, companies, and public institutions. Users get access to an overview of tax calculations, tax accounts and relevant information in real time on desktop, mobile and tablet.
Integration with Cloud System: The UNTS app acts as the user’s real-time gateway to the tax authorities’ cloud system. This not only automates tax calculation but also displays public benefits, subsidies, and payments, as well as balances in the tax accounts at the country’s National bank and balances in private banks. Users can have a comprehensive overview of assets and liquid capital, which reduces administrative burdens and promotes opportunities for increased welfare.
AI-driven Control Systems: The incorporation of artificial intelligence ensures real-time monitoring of transactions, proactively detecting and preventing potential tax evasion and corruption.
Advantages of UNTS:
- Dynamic adjustment in real-time: UNTS can dynamically adjust tax rates and public subsidies in response to changing economic and social conditions.
- UNTS tax APP: UNTS offers a user-friendly tax APP that simplifies tax administration for citizens, companies and public institutions. The UNTS APP is installed as modules that target user-friendly profile setup with customization features that replace traditional tax accounting systems.
- Centralized database: UNTS maintains a central cloud database with users’ tax information and tax accounts. Tax accounts is synchronized in real time with secure lifetime accounts at the national bank.
- A unique data batch for each product and service: The aggregated and summarized tax rates, with different tax rates inserted as percentages in each data batch, applicable to each product or service. Each tax rate or subsidy in each data batch can be changed in real time on each product or service, as well as changed in groups.
- Simplified taxation: UNTS simplifies taxation with two taxation channels and import duty in real time.
Tax channel 1: With three tax accounts: 1. private income and salary 2. profit on housing and savings 3. profit on business and investment.
Tax channel 2: Which is intended for private consumption taxation, which taxes when the good or service is transferred from a business to private consumption.
- The import tax is paid by both private consumers, public institutions and companies. The import tax is paid when crossing the border and settled in real time with the import module in the UNTS app.
This separation of private and business consumption exempts companies from value added accounting and value added taxation as well as a simplified calculation of the import tax.
- Simplified salary administration: UNTS reduces administrative burdens when taxing private incomes and salary payments, which are always transferred to the private taxed account. Welfare distribution of salary taxation takes place automatically in the UNTS tax system, according to a distribution key that has been determined politically, which in the tax system is transferred to the respective welfare accounts, e.g. pension scheme, sick pay and other subsidies in connection with private income and paid work. The distribution key is determined by law and can be adjusted monthly in real time.
- Integration with public services: UNTS integrates payment and financial services with public services, which can be performed automatically in real-time, promoting efficient resource allocation.
- Reduced administrative burdens: UNTS reduces administrative burdens for both tax authorities and taxpayers. Sales between traders are untaxed, which requires real-time accounting of stock and services provided as well as business equipment and consumption of own stock, which the tax authorities can check in real time on the taxpayer’s cloud data or by physical inspection.
- UNTS promotes economic equality: Promotes economic equality by making a monthly basic income tax-free. This tax-free income limit will exempt a large part of the population from paying tax. This tax-free income limit can be set at a level to replace proportionality in taxation and provide a more balanced equal net income. The introduction of a tax-free basic income can simplify administration and increase the population’s motivation for education and paid work. Differentiated tax rates on profits from tax account-2 for private housing and savings and tax account-3 for business operations and investment can be adjusted to achieve a reasonable social balance.
- Revenue for innovation and development: Funding navigation and real-time AI control systems generate significant savings in administration costs in the public sector and business. These savings can be used to invest in future innovative development.
- Housing and pension savings: Taxed private income can be transferred to a pension, housing savings, or business investment with the addition of the tax paid for private income. An amount determined by tax policy of the untaxed wage income can be converted into shares in the company in which the employee is employed. Dividends and capital gains from shares can be paid out taxed or tax-free on retirement or paid out to heirs on death.
- Automatic prevention and control: UNTS uses AI control algorithms to automatically detect tax evasion and corruption in real-time and sends proactive warnings to taxpayers if illegal actions are detected by the AI control system. The purpose of this preventive warning is to encourage taxpayers to choose favorable savings and investment options and to deter citizens from choosing financial crime.