Tivot Sandwich: Difference between revisions
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** Personal liability limited companies are those in which the shareholders are not personally liable for the debts or actions of the businesses.
** Unlimited liability limited companies are those companies whose shareholders are personally responsible for the debts and actions of the company.
* Trusts are legal entities in a similar fashion to companies. They are distinct in that new shares cannot be created. Usually a trustee manages the assets controlled by the trust for the benefit of a closed list of beneficiaries. There are usually restrictions on how the money can be used because in most cases are not taxed on their income. It cannot directly generate income through conducting business but only the passive influx of income through owning assets.
Property rights refer to the right of a legal person to dispose (or alienate), acquire, use, modify and enjoy an asset. Intellectual property (IP) rights allow legal persons to own their original ideas and creations. This means that original ideas, inventions and discoveries of a legal person can be protected from exploitation by others, and creators can generate revenue and recognition from their creations. Income from intellectual property includes rent through the payment of royalties by other companies using the intellectual property, income generated through using the IP by oneself or capital gains from the sale of the IP asset to others.
==Overview of UNAC law==
{{Main|Auroran law}}
The UNAC succeeded the ACA and the [[Auroran Union]] in 2017 following the passage of the ''Charter of the UNAC'' at the [[Auroran Reunification Summit]] which was held in [[Aura]], [[Emberwood Coast]] at the invitation of President [[Nimona Poole]]. In that process, laws and directives passed under the AU and ACA were incorporated into the Auroran statute books insofar as they were not repugnant to the new treaty. Furthermore, treaty obligations referring to taxation, companies and IP rights remained in force despite disruptions caused by the APW. Furthermore, through the passage of laws by the [[Council of the UNAC]] and [[Auroran Parliament]], the taxation, company and IP laws of the continent have matured.
The basic tenets of the shared law of the member states of the UNAC is as follows:
* '''Double taxation:''' A company originating in one UNAC member state and conducting business in another cannot be taxed in both jurisdictions for the same transaction.
* '''Corporate freedom''': Natural and juristic persons of member states should not be arbitrarily restricticed from establishing or owning shares in member states. Juristic persons in one country that are lawfully registered shall be recognised as valid entities with respect to domestic and UNAC law.
* '''Cross-national roperty rights''': The right of juristic and natural persons to own property in different member states shall be respected and cannot be violated unlawfully or arbitrarily by member states.
* '''Cross-national recognition of IP''': Patents and other relevant forms of IP registered in one member state shall be recognised insofar as a novel creation of similar nature has not been registered in another member state. Natural and juristic persons shall have the right to exercise and enjoy property rights with respect to IP in member states as long as that IP is lawfully registered.
These basic tenets are exploited by the Tivot Sandwich to create the regulatory framework allowing companies to use Tivot to escape taxation.
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