holding stock in the domestic corpora-
tion, or 
‘‘(II) in the case of an acquisition 
with respect to a domestic partner-
ship, by former partners of the do-
mestic partnership by reason of hold-
ing a capital or profits interest in the 
domestic partnership, or 
‘‘(ii) the management and control of 
the expanded affiliated group which in-
cludes the entity occurs, directly or indi-
rectly, primarily within the United States, 
and such expanded affiliated group has 
significant domestic business activities. 
‘‘(3) EXCEPTION
FOR
CORPORATIONS
WITH 
SUBSTANTIAL
BUSINESS
ACTIVITIES
IN
FOREIGN 
COUNTRY OF ORGANIZATION.—A foreign corporation 
described in paragraph (2) shall not be treated as an 
inverted domestic corporation if after the acquisition 
the expanded affiliated group which includes the en-
tity has substantial business activities in the foreign 
country in which or under the law of which the enti-
ty is created or organized when compared to the 
total business activities of such expanded affiliated 
group. For purposes of subsection (a)(2)(B)(iii) and 
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the preceding sentence, the term ‘substantial busi-
ness activities’ shall have the meaning given such 
term under regulations in effect on May 8, 2014, ex-
cept that the Secretary may issue regulations in-
creasing the threshold percent in any of the tests 
under such regulations for determining if business 
activities constitute substantial business activities for 
purposes of this paragraph. 
‘‘(4) MANAGEMENT AND CONTROL.—For pur-
poses of paragraph (2)(B)(ii)— 
‘‘(A) IN
GENERAL.—The Secretary shall 
prescribe regulations for purposes of deter-
mining cases in which the management and 
control of an expanded affiliated group is to be 
treated as occurring, directly or indirectly, pri-
marily within the United States. The regula-
tions prescribed under the preceding sentence 
shall apply to periods after May 8, 2014. 
‘‘(B) EXECUTIVE OFFICERS AND SENIOR 
MANAGEMENT.—Such regulations shall provide 
that the management and control of an ex-
panded affiliated group shall be treated as oc-
curring, directly or indirectly, primarily within 
the United States if substantially all of the ex-
ecutive officers and senior management of the 
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expanded affiliated group who exercise day-to- 
day responsibility for making decisions involving 
strategic, financial, and operational policies of 
the expanded affiliated group are based or pri-
marily located within the United States. Indi-
viduals who in fact exercise such day-to-day re-
sponsibilities shall be treated as executive offi-
cers and senior management regardless of their 
title. 
‘‘(5) SIGNIFICANT DOMESTIC BUSINESS ACTIVI-
TIES.—For purposes of paragraph (2)(B)(ii), an ex-
panded affiliated group has significant domestic 
business activities if at least 25 percent of— 
‘‘(A) the employees of the group are based 
in the United States, 
‘‘(B) the employee compensation incurred 
by the group is incurred with respect to employ-
ees based in the United States, 
‘‘(C) the assets of the group are located in 
the United States, or 
‘‘(D) the income of the group is derived in 
the United States, 
determined in the same manner as such determina-
tions are made for purposes of determining substan-
tial business activities under regulations referred to 
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in paragraph (3) as in effect on May 8, 2014, but 
applied by treating all references in such regulations 
to ‘foreign country’ and ‘relevant foreign country’ as 
references to ‘the United States’. The Secretary may 
issue regulations decreasing the threshold percent in 
any of the tests under such regulations for deter-
mining if business activities constitute significant 
domestic business activities for purposes of this 
paragraph.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Clause (i) of section 7874(a)(2)(B) of such 
Code is amended by striking ‘‘after March 4, 2003,’’ 
and inserting ‘‘after March 4, 2003, and before May 
9, 2014,’’. 
(2) Subsection (c) of section 7874 of such Code 
is amended— 
(A) in paragraph (2)— 
(i) 
by 
striking 
‘‘subsection 
(a)(2)(B)(ii)’’ and inserting ‘‘subsections 
(a)(2)(B)(ii) and (b)(2)(B)(i)’’, and 
(ii) by inserting ‘‘or (b)(2)(A)’’ after 
‘‘(a)(2)(B)(i)’’ in subparagraph (B), 
(B) in paragraph (3), by inserting ‘‘or 
(b)(2)(B)(i), as the case may be,’’ after 
‘‘(a)(2)(B)(ii)’’, 
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(C) in paragraph (5), by striking ‘‘sub-
section (a)(2)(B)(ii)’’ and inserting ‘‘sub-
sections (a)(2)(B)(ii) and (b)(2)(B)(i)’’, and 
(D) in paragraph (6), by inserting ‘‘or in-
verted domestic corporation, as the case may 
be,’’ after ‘‘surrogate foreign corporation’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after May 
8, 2014. 
SEC. 109. COUNTRY-BY-COUNTRY REPORTING. 
(a) COUNTRY-BY-COUNTRY REPORTING.—Section 13 
of the Securities Exchange Act of 1934 (15 U.S.C. 78m) 
is amended by adding at the end the following new sub-
section: 
‘‘(s) DISCLOSURE OF FINANCIAL PERFORMANCE ON 
A COUNTRY-BY-COUNTRY BASIS.— 
‘‘(1) RULES REQUIRED.—The Commission shall 
issue rules that require each issuer to include in an 
annual report filed by the issuer with the Commis-
sion information on a country-by-country basis dur-
ing the covered period for each tax jurisdiction, ag-
gregated from all subsidiaries residing in that juris-
diction, consisting of— 
‘‘(A) revenues from unrelated parties, re-
lated parties, and in total, 
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mstockstill on DSK30JT082PROD with BILLS
‘‘(B) profit or loss before taxes, 
‘‘(C) income tax accrued for the current 
year, 
‘‘(D) income tax paid (on a cash basis), 
‘‘(E) stated capital, 
‘‘(F) accumulated earnings, 
‘‘(G) number of employees, 
‘‘(H) tangible assets other than cash or 
cash equivalents, and 
‘‘(I) such other financial information as 
the Commission may determine is necessary or 
appropriate in the public interest or for the pro-
tection of investors. 
‘‘(2) RULES
RELATING
TO
FOREIGN
SUB-
SIDIARY.—For each foreign subsidiary, the report 
required by paragraph (1) shall be grouped by resi-
dent jurisdiction (including a group for subsidiaries 
resident nowhere), the tax jurisdiction (if different), 
and main business activity.’’. 
(b) RULEMAKING.— 
(1) DEADLINES.—The Securities and Exchange 
Commission (in this section referred to as the ‘‘Com-
mission’’) shall— 
(A) not later than 270 days after the date 
of enactment of this Act, issue a proposed rule 
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mstockstill on DSK30JT082PROD with BILLS
to carry out this section and the amendment 
made by this section; and 
(B) not later than 1 year after the date of 
enactment of this Act, issue a final rule to 
carry out this section and the amendment made 
by this section. 
(2) DATA FORMAT.—The information required 
to be provided by this section shall be provided by 
the issuer in a report in a format prescribed by the 
Commission, and such report shall be made available 
to the public online, in such format as the Commis-
sion shall prescribe. 
(3) EFFECTIVE DATE.—Subsection (s) of sec-
tion 13 of the Securities Exchange Act of 1934, as 
added by this section, shall become effective 1 year 
after the date on which the Commission issues a 
final rule under this section. 
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TITLE 
II—ADDITIONAL 
MEAS-
URES TO COMBAT TAX EVA-
SION 
SEC. 201. AUTHORIZING SPECIAL MEASURES AGAINST FOR-
EIGN JURISDICTIONS, FINANCIAL INSTITU-
TIONS, AND OTHERS THAT SIGNIFICANTLY 
IMPEDE UNITED STATES TAX ENFORCEMENT. 
Section 5318A of title 31, United States Code, is 
amended— 
(1) by striking the section heading and insert-
ing the following: 
‘‘§ 5318A. Special measures for jurisdictions, financial 
institutions, or international transactions 
that are of primary money laundering 
concern or significantly impede United 
States tax enforcement’’; 
(2) in subsection (a), by striking the subsection 
heading and inserting the following: 
‘‘(a) SPECIAL MEASURES TO COUNTER MONEY 
LAUNDERING AND EFFORTS TO SIGNIFICANTLY IMPEDE 
UNITED STATES TAX ENFORCEMENT.—’’; 
(3) in subsection (c)— 
(A) by striking the subsection heading and 
inserting the following: 
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‘‘(c) CONSULTATIONS
AND INFORMATION TO BE 
CONSIDERED IN FINDING JURISDICTIONS, INSTITUTIONS, 
TYPES OF ACCOUNTS, OR TRANSACTIONS TO BE OF PRI-
MARY MONEY LAUNDERING CONCERN OR TO BE SIGNIFI-
CANTLY
IMPEDING
UNITED
STATES
TAX
ENFORCE-
MENT.—’’; and 
(B) by inserting at the end of paragraph 
(2) thereof the following new subparagraph: 
‘‘(C) OTHER CONSIDERATIONS.—The fact 
that a jurisdiction or financial institution is co-
operating with the United States on imple-
menting the requirements specified in chapter 4 
of the Internal Revenue Code of 1986 may be 
favorably considered in evaluating whether such 
jurisdiction or financial institution is signifi-
cantly impeding United States tax enforce-
ment.’’; 
(4) in subsection (a)(1), by inserting ‘‘or is sig-
nificantly impeding United States tax enforcement’’ 
after ‘‘primary money laundering concern’’; 
(5) in subsection (a)(4)— 
(A) in subparagraph (A)— 
(i) by inserting ‘‘in matters involving 
money laundering,’’ before ‘‘shall consult’’; 
and 
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(ii) by striking ‘‘and’’ at the end; 
(B) by redesignating subparagraph (B) as 
subparagraph (C); and 
(C) by inserting after subparagraph (A) 
the following: 
‘‘(B) in matters involving United States 
tax enforcement, shall consult with the Commis-
sioner of Internal Revenue, the Secretary of 
State, the Attorney General of the United 
States, and in the sole discretion of the Sec-
retary, such other agencies and interested par-
ties as the Secretary may find to be appro-
priate; and’’; 
(6) in each of paragraphs (1)(A), (2), (3), and 
(4) of subsection (b), by inserting ‘‘or to be signifi-
cantly impeding United States tax enforcement’’ 
after ‘‘primary money laundering concern’’ each 
place that term appears; 
(7) in subsection (b), by striking paragraph (5) 
and inserting the following: 
‘‘(5) PROHIBITIONS OR CONDITIONS ON OPEN-
ING OR MAINTAINING CERTAIN CORRESPONDENT OR 
PAYABLE-THROUGH
ACCOUNTS
OR
AUTHORIZING 
CERTAIN PAYMENT CARDS.—If the Secretary finds a 
jurisdiction outside of the United States, 1 or more 
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financial institutions operating outside of the United 
States, or 1 or more classes of transactions within 
or involving a jurisdiction outside of the United 
States to be of primary money laundering concern or 
to be significantly impeding United States tax en-
forcement, the Secretary, in consultation with the 
Secretary of State, the Attorney General of the 
United States, and the Chairman of the Board of 
Governors of the Federal Reserve System, may pro-
hibit, or impose conditions upon— 
‘‘(A) the opening or maintaining in the 
United States of a correspondent account or 
payable-through account; or 
‘‘(B) the authorization, approval, or use in 
the United States of a credit card, charge card, 
debit card, or similar credit or debit financial 
instrument by any domestic financial institu-
tion, financial agency, or credit card company 
or association, for or on behalf of a foreign 
banking institution, if such correspondent ac-
count, payable-through account, credit card, 
charge card, debit card, or similar credit or 
debit financial instrument, involves any such ju-
risdiction or institution, or if any such trans-
action may be conducted through such cor-
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respondent account, payable-through account, 
credit card, charge card, debit card, or similar 
credit or debit financial instrument.’’; 
(8) in subsection (c)(1), by inserting ‘‘or is sig-
nificantly impeding United States tax enforcement’’ 
after ‘‘primary money laundering concern’’; 
(9) in subsection (c)(2)(A)— 
(A) in clause (ii), by striking ‘‘bank secrecy 
or special regulatory advantages’’ and inserting 
‘‘bank, tax, corporate, trust, or financial secrecy 
or regulatory advantages’’; 
(B) in clause (iii), by striking ‘‘supervisory 
and counter-money’’ and inserting ‘‘supervisory, 
international tax enforcement, and counter- 
money’’; 
(C) in clause (v), by striking ‘‘banking or 
secrecy’’ and inserting ‘‘banking, tax, or se-
crecy’’; and 
(D) in clause (vi), by inserting ‘‘, tax trea-
ty, or tax information exchange agreement’’ 
after ‘‘treaty’’; 
(10) in subsection (c)(2)(B)— 
(A) in clause (i), by inserting ‘‘or tax eva-
sion’’ after ‘‘money laundering’’; and 
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(B) in clause (iii), by inserting ‘‘, tax eva-
sion,’’ after ‘‘money laundering’’; and 
(11) in subsection (d), by inserting ‘‘involving 
money laundering, and shall notify, in writing, the 
Committee on Finance of the Senate and the Com-
mittee on Ways and Means of the House of Rep-
resentatives of any such action involving United 
States tax enforcement’’ after ‘‘such action’’. 
SEC. 202. STRENGTHENING THE FOREIGN ACCOUNT TAX 
COMPLIANCE ACT (FATCA). 
(a) REPORTING ACTIVITIES WITH RESPECT TO PAS-
SIVE
FOREIGN
INVESTMENT
COMPANIES.—Section 
1298(f) is amended by inserting ‘‘, or who directly or indi-
rectly forms, transfers assets to, is a beneficiary of, has 
a beneficial interest in, or receives money or property or 
the use thereof from,’’ after ‘‘shareholder of’’. 
(b) WITHHOLDABLE PAYMENTS TO FOREIGN FINAN-
CIAL INSTITUTIONS.—Section 1471(d) is amended— 
(1) by inserting ‘‘or transaction’’ after ‘‘any de-
pository’’ in paragraph (2)(A), and 
(2) by striking ‘‘or any interest’’ and all that 
follows in paragraph (5)(C) and inserting ‘‘deriva-
tives, or any interest (including a futures or forward 
contract, swap, or option) in such securities, part-
nership interests, commodities, or derivatives.’’. 
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(c) WITHHOLDABLE PAYMENTS TO OTHER FOREIGN 
FINANCIAL INSTITUTIONS.—Section 1472 is amended— 
(1) by inserting ‘‘as a result of any customer 
identification, anti-money laundering, anti-corrup-
tion, or similar obligation to identify account hold-
ers,’’ after ‘‘reason to know,’’ in subsection (b)(2), 
and 
(2) by inserting ‘‘as posing a low risk of tax 
evasion’’ after ‘‘this subsection’’ in subsection 
(c)(1)(G). 
(d) DEFINITIONS.—Clauses (i) and (ii) of section 
1473(2)(A) are each amended by inserting ‘‘or as a bene-
ficial owner’’ after ‘‘indirectly’’. 
(e) SPECIAL RULES.—Section 1474(c) is amended— 
(1) by inserting ‘‘, except that information pro-
vided under section 1471(c) or 1472(b) may be dis-
closed to any Federal law enforcement agency, upon 
request or upon the initiation of the Secretary, to in-
vestigate or address a possible violation of United 
States law’’ after ‘‘shall apply’’ in paragraph (1), 
and 
(2) by inserting ‘‘, or has had an agreement 
terminated under such section,’’ after ‘‘section 
1471(b)’’ in paragraph (2). 
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(f) INFORMATION WITH RESPECT TO FOREIGN FI-
NANCIAL ASSETS.—Section 6038D(a) is amended by in-
serting ‘‘ownership or beneficial ownership’’ after ‘‘holds 
any’’. 
(g) ESTABLISHING PRESUMPTIONS
FOR ENTITIES 
AND TRANSACTIONS INVOLVING NON-FATCA INSTITU-
TIONS.— 
(1) PRESUMPTIONS FOR TAX PURPOSES.— 
(A) IN GENERAL.—Chapter 76 is amended 
by inserting after section 7491 the following 
new subchapter: 
‘‘Subchapter F—Presumptions for Certain 
Legal Proceedings 
‘‘Sec. 7492. Presumptions pertaining to entities and transactions involving non- 
FATCA institutions. 
‘‘SEC. 7492. PRESUMPTIONS PERTAINING TO ENTITIES AND 
TRANSACTIONS INVOLVING NON-FATCA IN-
STITUTIONS. 
‘‘(a) CONTROL.—For purposes of any United States 
civil judicial or administrative proceeding to determine or 
collect tax, there shall be a rebuttable presumption that 
a United States person who, directly or indirectly, formed, 
transferred assets to, was a beneficiary of, had a beneficial 
interest in, or received money or property or the use there-
of from an entity, including a trust, corporation, limited 
liability company, partnership, or foundation, that holds 
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an account, or in any other manner has assets, in a non- 
FATCA institution, exercised control over such entity. The 
presumption of control created by this subsection shall not 
be applied to prevent the Secretary from determining or 
arguing the absence of control. 
‘‘(b) TRANSFERS OF INCOME.—For purposes of any 
United States civil judicial or administrative proceeding 
to determine or collect tax, there shall be a rebuttable pre-
sumption that any amount or thing of value received by 
a United States person directly or indirectly from an ac-
count or from an entity that holds an account, or in any 
other manner has assets, in a non-FATCA institution, 
constitutes income of such person taxable in the year of 
receipt; and any amount or thing of value paid or trans-
ferred by or on behalf of a United States person directly 
or indirectly to an account, or entity that holds an ac-
count, or in any other manner has assets, in a non- 
FATCA institution, represents previously unreported in-
come of such person taxable in the year of the transfer. 
‘‘(c) REBUTTING
THE PRESUMPTIONS.—The pre-
sumptions established in this section may be rebutted only 
by clear and convincing evidence, including detailed docu-
mentary, testimonial, and transactional evidence, estab-
lishing that— 
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‘‘(1) in subsection (a), such taxpayer exercised 
no control, directly or indirectly, over account or en-
tity at the time in question, and 
‘‘(2) in subsection (b), such amounts or things 
of value did not represent income related to such 
United States person. 
Any court having jurisdiction of a civil proceeding in which 
control of such an offshore account or offshore entity or 
the income character of such receipts or amounts trans-
ferred is an issue shall prohibit the introduction by the 
taxpayer of any foreign based document that is not au-
thenticated in open court by a person with knowledge of 
such document, or any other evidence supplied by a person 
outside the jurisdiction of a United States court, unless 
such person appears before the court.’’. 
(B) The table of subchapters for chapter 
76 is amended by inserting after the item relat-
ing to subchapter E the following new item: 
‘‘SUBCHAPTER F. PRESUMPTIONS FOR CERTAIN LEGAL PROCEEDINGS’’. 
(2) DEFINITION OF NON-FATCA INSTITUTION.— 
Section 7701(a) is amended by adding at the end 
the following new paragraph: 
‘‘(51) NON-FATCA
INSTITUTION.—The term 
‘non-FATCA institution’ means any foreign financial 
institution that does not meet the reporting require-
ments of section 1471(b).’’. 
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(3) PRESUMPTIONS FOR SECURITIES LAW PUR-
POSES.—Section 21 of the Securities Exchange Act 
of 1934 (15 U.S.C. 78u) is amended by adding at 
the end the following new subsection: 
‘‘(j) PRESUMPTIONS PERTAINING TO CONTROL AND 
BENEFICIAL OWNERSHIP.— 
‘‘(1) CONTROL.—For purposes of any civil judi-
cial or administrative proceeding under this title, 
there shall be a rebuttable presumption that a 
United States person who, directly or indirectly, 
formed, transferred assets to, was a beneficiary of, 
had a beneficial interest in, or received money or 
property or the use thereof from an entity, including 
a trust, corporation, limited liability company, part-
nership, or foundation, that holds an account, or in 
any other manner has assets, in a non-FATCA insti-
tution (as defined in section 7701(a)(51) of the In-
ternal Revenue Code of 1986), exercised control over 
such entity. The presumption of control created by 
this paragraph shall not be applied to prevent the 
Commission from determining or arguing the ab-
sence of control. 
‘‘(2) BENEFICIAL OWNERSHIP.—For purposes 
of any civil judicial or administrative proceeding 
under this title, there shall be a rebuttable presump-
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tion that securities that are nominally owned by an 
entity, including a trust, corporation, limited liability 
company, partnership, or foundation, and that are 
held in a non-FATCA institution (as so defined), are 
beneficially owned by any United States person who 
directly or indirectly exercised control over such enti-
ty. The presumption of beneficial ownership created 
by this paragraph shall not be applied to prevent the 
Commission from determining or arguing the ab-
sence of beneficial ownership.’’. 
(4) PRESUMPTION FOR REPORTING PURPOSES 
RELATING TO FOREIGN FINANCIAL ACCOUNTS.—Sec-
tion 5314 of title 31, United States Code, is amend-
ed by adding at the end the following new sub-
section: 
‘‘(d) REBUTTABLE PRESUMPTION.—For purposes of 
this section, there shall be a rebuttable presumption that 
any account with a non-FATCA institution (as defined in 
section 7701(a)(51) of the Internal Revenue Code of 
1986) contains funds in an amount that is at least suffi-
cient to require a report prescribed by regulations under 
this section.’’. 
(5) REGULATORY AUTHORITY.—Not later than 
180 days after the date of enactment of this Act, the 
Secretary of the Treasury and the Chairman of the 
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Securities and Exchange Commission shall each 
adopt regulations or other guidance necessary to im-
plement the amendments made by this subsection. 
The Secretary and the Chairman may, by regulation 
or guidance, provide that the presumption of control 
shall not extend to particular classes of transactions, 
such as corporate reorganizations or transactions 
below a specified dollar threshold, if either deter-
mines that applying such amendments to such trans-
actions is not necessary to carry out the purposes of 
such amendments. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date which is 180 days 
after the date of enactment of this Act, whether or not 
regulations are issued under subsection (g)(5). 
SEC. 203. REPORTING UNITED STATES BENEFICIAL OWN-
ERS OF FOREIGN OWNED FINANCIAL AC-
COUNTS. 
(a) IN GENERAL.—Subpart B of part III of sub-
chapter A of chapter 61 is amended by inserting after sec-
tion 6045B the following new sections: 
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‘‘SEC. 6045C. RETURNS REGARDING UNITED STATES BENE-
FICIAL OWNERS OF FINANCIAL ACCOUNTS 
LOCATED IN THE UNITED STATES AND HELD 
IN THE NAME OF A FOREIGN ENTITY. 
‘‘(a) REQUIREMENT OF RETURN.—If— 
‘‘(1) any withholding agent under sections 1441 
and 1442 has the control, receipt, custody, disposal, 
or payment of any amount constituting gross income 
from sources within the United States of any foreign 
entity, including a trust, corporation, limited liability 
company, partnership, or foundation (other than an 
entity with shares regularly traded on an established 
securities market), and 
‘‘(2) such withholding agent determines for pur-
poses of title 14, 18, or 31 of the United States 
Code that a United States person has any beneficial 
interest in the foreign entity or in the account in 
such entity’s name (hereafter in this section referred 
to as ‘United States beneficial owner’), 
then the withholding agent shall make a return according 
to the forms or regulations prescribed by the Secretary. 
‘‘(b) REQUIRED INFORMATION.—For purposes of 
subsection (a) the information required to be included on 
the return shall include— 
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‘‘(1) the name, address, and, if known, the tax-
payer identification number of the United States 
beneficial owner, 
‘‘(2) the known facts pertaining to the relation-
ship of such United States beneficial owner to the 
foreign entity and the account, 
‘‘(3) the gross amount of income from sources 
within the United States (including gross proceeds 
from brokerage transactions), and 
‘‘(4) such other information as the Secretary 
may by forms or regulations provide. 
‘‘(c) STATEMENTS TO BE FURNISHED TO BENE-
FICIAL OWNERS WITH RESPECT TO WHOM INFORMATION 
IS REQUIRED TO BE REPORTED.—A withholding agent 
required to make a return under subsection (a) shall fur-
nish to each United States beneficial owner whose name 
is required to be set forth in such return a statement 
showing— 
‘‘(1) the name, address, and telephone number 
of the information contact of the person required to 
make such return, and 
‘‘(2) the information required to be shown on 
such return with respect to such United States bene-
ficial owner. 
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