Stop Tax Haven Abuse Act

Bill: 113-hr-1554
Sponsor: Rep. Doggett, Lloyd [D-TX-35]
Introduced: 2013-04-15 in the House
Policy area: Taxation
Subjects: Accounting and auditing
Administrative law and regulatory procedures
Bank accounts, deposits, capital
Banking and financial institutions regulation
Business records
Congressional oversight
Corporate finance and management
Department of the Treasury
Evidence and witnesses
Financial services and investments
Foreign and international banking
Foreign and international corporations
Fraud offenses and financial crimes
Government information and archives
Judicial procedure and administration
Jurisdiction and venue
Securities
Securities and Exchange Commission (SEC)
Tax administration and collection, taxpayers
Tax-exempt organizations
Taxation of foreign income
U.S. and foreign investments

Summary:
action_date: 2013-04-15
text: 
Stop Tax Haven Abuse Act - Authorizes the Secretary of the Treasury to impose restrictions on foreign jurisdictions or financial institutions operating in the United States that are of prime money laundering concern or that significantly impede U.S. tax enforcement. 
 
Amends the Internal Revenue Code to: (1) establish a rebuttable presumption against the validity of transactions by institutions that do not comply with reporting requirements under the Foreign Account Tax Compliance Act, (2) treat certain foreign corporations managed and controlled primarily in the United States as domestic corporations for tax purposes, (3) require tax withholding agents and financial institutions to report certain information about beneficial owners of foreign-owned financial accounts, (4) treat swap payments sent offshore as taxable U.S. source income, (5) allow the use of tax return information to evaluate foreign financial account reports, (6) increase penalties for promoting abusive tax shelters and for aiding and abetting the understatement of tax liability, (7) prohibit tax advisor contingent fee agreements for obtaining a tax savings or benefit, and (8) impose additional requirements for third party summonses used to obtain information in tax investigations that do not identify the person with respect to whose liability the summons is issued (i.e., John Doe summons). 
 
Amends the Securities Exchange Act of 1934 to: (1) require corporations registered with the Securities and Exchange Commission (SEC) to report annually, on a country-by country basis, on employees, pre-tax gross revenues, and payments made to governments; and (2) authorize a fine of up to $1 million for failure to disclose any holding or transaction involving equity or debt instruments known to involve a foreign entity that would otherwise be subject to disclosure requirements. 
 
Requires the Secretary to publish a proposed rule in the Federal Register requiring investment advisors to establish anti-money laundering programs and submit suspicious activity reports. 
 
Extends anti-money laundering requirements to persons engaged in the business of forming new businesses or other legal entities.
 
Requires federal banking agencies and the SEC to develop examination techniques to detect and prevent abusive tax shelter activities or the aiding or abetting of tax evasion by financial institutions. 
 
Requires the Secretary to: (1) disclose tax return information to federal financial regulators for purposes of tax shelter investigations; (2) disclose to Congress documents relating to a determination to grant, deny, revoke, or restore the tax-exempt status of an organization; and (3) expand the standards applicable to tax practitioners for issuing written advice on transactions which have a potential for tax avoidance or evasion. 


Legislative actions:
action_date: 2013-04-15
text: Referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2013-04-15
text: Referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2013-04-15
text: Introduced in House
action_date: 2013-04-15
text: Introduced in House