text: Chapter 6
  infrastructure improvements). Furthermore, the Occupying Power is not required to spend money for the
  support of any activity opposed to either its military interests or to the restoration of order in the occupied
  territory, even if the ousted government formerly allocated tax revenues to such activity.
  6-148. The Occupying Power, as the paramount authority in the occupied territory, is exempt from
  indigenous taxation in the occupied territory unless it waives its sovereign immunity and consents to be taxed.
  Its personnel are also generally exempt from local taxation, as part of their immunity from local law. In
  practice, the Occupying Power often issues an order to the effect that no taxes of any kind may be levied or
  assessed within the occupied territory on the persons, agencies, property, instrumentalities, or transactions of
  the Occupying Power.
  METHOD OF TAX COLLECTION
  6-149. The Occupying Power may only collect taxes, as far as possible, in accordance with the rules of
  assessment and incidence in force. If, due to the flight or unwillingness of local officials, it is impracticable to
  follow the rules of incidence and assessment in force, then the total amount of taxes to be paid may be allotted
  among the districts, towns, or other subdivisions, and the local authorities may be required to collect it.
  6-150. The power of the Occupying Power to collect taxes extends only to persons and property under its
  actual control. For example, persons and property wholly outside occupied territory generally may not be taxed,
  but the property of absent inhabitants that is within the occupied territory, such as real estate, may be taxed.
  CHANGES IN TAX LAW
  6-151. The Occupying Power may suspend the tax laws of the occupied territory, but such a suspension
  does not affect the Occupying Power’s responsibilities related to the occupied territory. Similarly, the
  Occupying Power may also reduce the rate of taxes under the existing tax laws.
  6-152. Unless required to do so by considerations of public order and safety, the Occupying Power may
  create new taxes. Additional revenue may be raised in some other form, such as monetary contributions or
  customs duties. UN Security Council resolutions may provide additional authority for the Occupying Power
  to amend the tax laws.
  SOCIAL WELFARE TAXES
  6-153. An Occupying Power is often an employer of local civilian labor. Local law may provide that
  employers are responsible for the deduction and transfer to indigenous agencies of unemployment, health
  insurance, pensions, and similar welfare contributions. However, in general, the agencies of the Occupying
  Power do not act as a collector for the local authorities, and will not be responsible for the employer’s share
  of such welfare taxes. On the other hand, the inhabitants retain their obligation to pay their share of such
  contributions out of their remuneration.
  TAXES COLLECTED BY LOCAL AUTHORITIES
  6-154. The Occupying Power may only collect those taxes, dues, and tolls imposed “for the benefit of the
  State” (HR art. 48). The words “for the benefit of the State” were inserted in Article 48 of the Hague IV
  Regulations to exclude local taxes, dues, and tolls that are collected by local authorities. The Occupying
  Power may supervise the expenditure of such revenue and prevent its hostile use.
  CONTRIBUTIONS
  6-155. If, in addition to continuing to collect taxes under the existing law of the occupied territory as
  permitted by Article 48 of the Hague IV Regulations, the Occupying Power levies other money contributions
  in the occupied territory, this may only be for the needs of the army or of the administration of the territory
  in question (HR art. 49). The economy of an occupied territory may only be required to bear the expenses of
  the occupation, and these expenses should not be greater than what the economy of the occupied territory can
  reasonably be expected to bear.