What is a Direct Tax and what exactly triggers a Direct Tax Event? Income & Corporation tax are based on the profit created inside a registered entity. The registered entities revenue collection agency or tax office to you and I, expect payment as a percentage of income or profit. Once upon a time you bought depreciating assets to offset tax. Now though you pay taxes on your profits and can end up with less. How did we get here?
In previous Notes and Records we have discussed the Ten Rules of Commerce and explained that there is No Money, only Titles and Claims. Commerce is all about Title. When we create an object, the creator holds the true title to that object. The objects or title can be split into rights or claims via trust law. This happens every day in plain sight however a majority of people only see part of the process and accept it at face value.
Trust Law is used to separate an objects title into:
Legal Interest (Rights/Claims)
and
Beneficial Interest (Rights/Claims)
We have also covered the creation of objects and the points at which the creator passes the title on unknowingly. As we are discussing Tax we’ll mention this only briefly rather than keep pressing the point but when you register anything you have given up Title and that is a mistake. The reason is simple: when the Title holder (whoever it may be) splits the title into these two parts, the Title holder sets the rules and the Jurisdiction to use these ‘Rights’.
Within the rules and regulations the Title holder sets can be annual fees, like land/property tax, or a fee applied when a Right is transferred stamp duty for example. This is how these types of taxes are created but the entity charging must have Title to the object if not, by the same Trust Law they cannot set the rules, regulations etc to govern the asset or object. This is clearly why you want to hold Title and not gift it away.
To the concept of Direct Tax. This is on the Beneficial Interest side. The Beneficial Interest can be split into debt and equity, so fixed interest or claim and floating negotiable interest or claim in/to the object can be valued in units, hence the term ‘Units of Beneficial Interest’.
It’s with these Units of Beneficial Interest (UBI’s) that Banking and Trusts come into the equation. You can exchange these UBI’s for other equal non-monetary value UBI’s without creating a tax event and you can also pledge them as collateral for debt. Hence debt is a ‘claim’ on a UBI.
You can change the Legal Interest and retain the UBI’s by transferring them to a Trust or company, with the Trustee/Director using the Legal Rights on your behalf to maintain or preferably increase the UBI’s value. All these ‘rights’ & claims can be moved around infinitum without ever creating a tax event. Be aware that is only because those creating the tax event do not have claim to both Legal and Beneficial Title.
The tax event happens when you combine the Legal and the Beneficial Interest and then exchange them for currency inside a court’s jurisdiction, a venue. This is where the term Re-Venue comes from and also to make a Profert, which refers to recording the transfer of rights inside a court for consideration of greater value. The question is how to decide the value?
The value is monetary, in other words fiat currency, which is the courts creation therefore they control it. When you convert your UBI’s into the courts UBI’s, which is what you know as Fiat Currency, the courts demand the increase created by the Re-Venue in the form of a percentage which is the “Tax”.
Fiat currency are UBI’s to the public property and titles held in trust by the government corporations registers as it is these titles that will be used as collateral to back the promissory notes/mortgages that the banks exchange for currency. Remember “when you register anything, anywhere, you give up title”… the income streams that are derived from these titles are the source that backs the government corporations UBI’s issued by the central bank. It is either you paying interest on the mortgage/debt or you indirectly paying tax to pay the interest on the government debt that backs the value of the currency in circulation.
That is why the Central Bank & Revenue Collection Agency and Courts are all linked together. They create a venue to exchange Legal & Beneficial Interest and then they are able to store any excess in their own UBI’s (fiat) until you exchange them for other UBI’s (non fiat) in other objects and assets. Which is where we coin the phrase “Medium of Exchange.” Currency or what we commonly/wrongly call money is that ‘Medium of Exchange’.
Currency is not a true store of value, it’s only supposed to be used as a Medium of Exchange inside Commerce. True stores of value are the Real world, tangible objects and assets. This becomes glaringly obvious when you look at any serious and wealthy investors portfolio. Remember you can pledge UBI’s to a bank and they will use them to create debt(claims).
This next part is where the magic occurs, to coin another phrase. Banking. Banks are licensed and regulated by the Central Bank, they must adhere to the Central Banks rules and regulations or lose their license and with it any public confidence. Essentially Banks are agencies of the Central Bank Corporation (they’re also insured by them as well) the Central Bank is a “for profit organisation” working with other “for profit organisations” that they control. The currency UBI’s we use inside the Government jurisdiction, as a Medium of Exchange, are created by us too. You can see that we are the creators that give away our creations, we’re charged for giving them away, charged for extra revenue they provide and charged for the right to use them. Let’s summarise that so that you see just how we’ve been duped.
We Create the Objects
We give up Title by registering the objects that we created
We pay to register our creations
We Create the Claims (Currency UBI’s) against our own Creations
We place the Legal & Beneficial Interest in the Government’s Jurisdiction
We pay for the Privilege to exchange Titles and Claims that we Created
The kicker to all this is it’s all done voluntarily. We literally follow the protocol above and never question if there is a different way.
In recent years we’ve seen the rise of crypto currencies and the blockchain. These are an alternative to the stages above. Bitcoin, for example, can be used as a different venue to exchange UBI’s into Objects/Titles. This is of course in direct conflict with the system as you know it and today 27th March 2023, the G7 leaders have stated they will “work together on tougher global crypto regulations”. They really don’t want to relinquish control. Crypto has its drawbacks though, it’s all very well operating outside of the existing governmental system in whatever coin you wish but at some point you are going to convert/exchange/swap your unconventional digital asset back to fiat currency and the second that you do that you trigger a tax event in the eyes of those who have created fiat and control it.
You have to be aware when you go into a different venue or jurisdiction from the Government’s jurisdiction/venue and then return BACK into fiat currency, you have triggered a Tax Event. In the eyes of the Government Revenue Collection Agency/Courts, AS you have merely added another step but the end RESULT remains the same, you have made a taxable profit.
Also depending on the Person/Corporation/Trust you will have to account for the year end value of the estate and account for all the UBI’s held & their values as well. You as the Agent/Trustee of those entities must have been acting in good faith. Seeking to enhance and increase bona fide benefit of the entity’s value.
A reminder to previous Notes & Records ‘Persons’, Corporations and Trust’s are all the same structure but with different Title holders setting the rules, in differently named positions. Agent, Director and Trustee for example.
It’s a very big leap to see and grasp how UBI’s are the value, the Good Faith that you must account for. Although they are the real tangible asset, the Title is hidden from us and we are led to believe that we should seek currency as our end goal. The Currency UBI’s are a by-product and although they should be treated with respect they give no real wealth or power. Our strategies allow us to move the UBI’s around to control the venue/jurisdiction where they are exchanged. If you are in control of the venue/jurisdiction when you combine the Legal & Beneficial Interests for currency UBI’s, you are in control of the exchange and therefore you control the Tax Event.