Nicholas's eyes widened slightly in realization. “So… Her Highness plans to make Jola into a similar haven as Foster Liam?”
Ravenna chuckled, shaking her head in amusent. “No.”
Nicholas frowned in confusion. Before he could ask why, Ravenna leaned forward, her expression sharpening.
“I forbid external businesses from deciding my duchy’s economy,” she stated firmly. “So, no—I will not be allowing rchant guilds or noble families to set up their headquarters in my city.”
Nicholas furrowed his brows, trying to piece the puzzle together. “Then… how exactly do you intend to ensure that rchants and nobles don’t have to pay Local and Base Tax?”
A slow, knowing smirk ford on Ravenna’s lips. “I am currently in the process of building a gambling house in Ronin Town,” she revealed. “However, its headquarters will not be in Ronin Town—it will be registered in Jola.”
Nicholas blinked, still struggling to grasp the implications of her words. Before he could ask further, Earl Hessman stepped in.
“At first glance,” Hessman said, picking up a quill, “one might assu that because the gambling house is physically located in Ronin Town, it should be headquartered there.” He began writing on a fresh parchnt. “After all, per Imperial business registration laws, every establishnt must declare an official base of operations—which usually ans the place where the majority of the business is conducted.”
Hessman paused, allowing the tension to settle before presenting a sealed docunt to Nicholas. “However, Her Highness has established sothing… unprecedented.”
Nicholas carefully unfolded the docunt and scanned its contents. His eyes darted over the text until a specific term caught his attention:
"Holding Company"
He read aloud, “‘A holding company does not engage in direct comrcial operations. Instead, it exists solely for the purpose of financial managent and oversight of its subsidiary branches.’”
As the aning sank in, realization dawned upon him. Nicholas looked up, his expression shifting to one of awe. “So, this ans that the holding company—registered in Jola—serves as the main financial body, while the individual gambling houses are rely subsidiaries operating under it.”
Ravenna gave a slow, approving nod. “Exactly.”
Nicholas continued excitedly, “That would an that all the money generated from gambling across different regions will ultimately be managed by the holding company in Jola, correct?”
Hessman smirked and leaned back in his chair. “Now you see the brilliance of it.”
Nicholas quickly pieced together the implications. “Since the Base Tax applies only to the primary headquarters of a business, and since Her Highness controls Jola’s taxation policies, she can set the Base Tax to zero for her holding company.”
He then snapped his fingers. “And because Jola is exempt from Imperial Tax for the next fifteen years due to the Emperor’s decree… that ans no Imperial Tax either.”
Excitent filled his voice as he turned back to Ravenna. “This is huge! So you’ll allow other rchant guilds and noble families to register their own holding companies in Jola and use the sa loophole!?”
Ravenna’s sly smile widened as she leaned back into her chair, her fingers tapping rhythmically against the armrest.
“No.”
Nicholas’s excitent faltered. “Huh?”
Hessman coughed slightly, drawing Nicholas’s attention. “Her Highness is not offering Jola as an open market for external control,” he explained. “She does not want other nobles or rchant guilds setting up their own financial bases within her duchy. That would give them too much economic influence over her territory.”
Nicholas frowned. “But if you don’t allow outside ownership of businesses… then how will this system work?”
Ravenna locked eyes with him, her gaze sharp and calculating.
“The gambling house,” she said, pausing for effect. “That is the key.”
Nicholas remained silent, waiting for her to elaborate.
“The gambling houses—The Casinos—will have branches in multiple regions,” Ravenna continued. “However, they will not function using direct currency transactions.”
Nicholas’s brows furrowed further. “Then… how will they operate?”
Ravenna’s smirk deepened.
“Casino chips.”
Nicholas tilted his head slightly. “Casino chips?”
Ravenna leaned forward, her voice smooth and controlled. “A system where nobles and rchants deposit their wealth in exchange for casino chips—chips that can be used exclusively across all my casino branches.”
Nicholas’s breath hitched as the pieces fell into place. “Wait… so instead of rchants and nobles keeping their money in their own treasuries, they’ll deposit it into the casino system, which is controlled by Jola’s holding company?”
Ravenna gave a slow nod.
“Once their wealth enters my system, it is no longer subject to Base Tax or Imperial Tax in the territories where my casinos operate. Instead, it will flow directly into Jola’s Holding Company, where I set the tax rates which will be zero.”
Nicholas listened intently, still piecing together the full scope of her plan.
“They can open a holding account in my casino,” Ravenna continued. “At the end of each day, their profits will be automatically converted into Casino Chips—as an internal currency exclusive to my casinos. Instead of holding liquid coins in taxable treasuries, their wealth will be stored as chips, which can be redeed at any ti.”
She paused, allowing the weight of her words to sink in before delivering the final blow.
“When they need to withdraw, they can convert the chips back into imperial mana coins or any other currency. The only ti they will need to pay any tax is during the exchange process, which falls under Local Tax. This ans they avoid both Imperial Tax and Base Tax entirely, as long as their wealth remains within my system.”
Nicholas’s mouth parted slightly as understanding dawned upon him. This was more than a tax loophole—this was an entirely new financial model.
“I… I see,” he muttered, still absorbing the implications. He then furrowed his brows. “But what does the rchant Association have to do with this?”
Earl Hessman, who had been quietly observing, finally spoke up.
“Her Highness already has a great deal of stuff on her plate,” he explained. “Running a duchy, overseeing her territories, and managing an entire casino is an overwhelming task—even for soone as capable as Her Highness.”
He tapped the parchnt on the table.
“That is why she requires a third-party guild to handle the financial transactions on her behalf.”
Nicholas’s eyes widened as realization struck.
“She… she wants us to facilitate the movent of the money?” His voice carried a mix of shock and excitent.
Earl Hessman chuckled, sensing the younger man’s enthusiasm.
“If this system proves successful,” Hessman continued, “it will result in massive transactions every single month. Money will constantly flow in and out of the casinos, cycling through Jola’s economy in a way that no imperial authority can properly regulate.”
Nicholas swallowed hard, his mind racing with the enormous potential of such a venture.
“That’s why,” Hessman said with a knowing smile, “I am offering her to make an exclusive deal with us.”
Ravenna leaned back in her chair, observing Nicholas with an amused expression as Hessman resud the discussion with her.
Nicholas clenched his fists under the table, his excitent barely contained. If the rchant Association secured exclusive rights to facilitate the financial transactions of Jola’s casino empire, they wouldn’t just be moving money—they would beco an integral part of one of the most revolutionary financial sches in the empire.
Read 12 Advance Chapter by becoming a Patron : 94. Serena’s Return
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