No government and no tax authority anywhere in the world has the right to tax the NLT or to require that it file tax returns or income reports. Indeed, this has been proven to be true in the experience of thousands of clients over at least five decades.
Most countries have government-authorized statutory entities that are exempt, but the price of being exempt is high. This price is not just in money for fees, but is also in the loss of privacy, the abundance of bureaucratic paperwork required, and the requirement to continue submitted reports each year about the income of the entity. If the government doesn’t approve of the details in such reports, it can remove the exemption.
The NLT, by contrast, is non-statutory. It operates on contract law, which is affirmed by the Uniform Commercial Code (UCC), which is global. But such affirmation does not make the NLT subject to any jurisdiction. Being non-statutory, it is an exception to the filing and taxing requirements. Since this status of exception was not granted by any government, that means no government can remove it. That is an infinitely stronger position to be in.
It is like comparing cars to airplanes. Cars driving down on the ground are subject to road rules and obstacles in the highways, including traffic jams. Airplanes, by contrast, are exceptions to the road rules, because airplanes don’t travel on the roads. They travel in the far less restrictive skies above. The NLT is like the airplane in that it operates in a far higher echelon of freedom and privilege.