Sequester Delay and Stop Tax Haven Abuse Act

Bill: 113-hr-3666
Sponsor: Rep. DeLauro, Rosa L. [D-CT-3]
Introduced: 2013-12-05 in the House
Policy area: Taxation
Subjects: Accounting and auditing
Administrative law and regulatory procedures
Administrative remedies
Appropriations
Bank accounts, deposits, capital
Banking and financial institutions regulation
Budget deficits and national debt
Business investment and capital
Civil actions and liability
Commodities markets
Commodity Futures Trading Commission
Congressional oversight
Corporate finance and management
Credit and credit markets
Department of the Treasury
Evidence and witnesses
Executive agency funding and structure
Financial services and investments
Foreign and international banking
Foreign and international corporations
Fraud offenses and financial crimes
Government information and archives
Government trust funds
Income tax credits
Income tax deductions
Income tax exclusion
Interest, dividends, interest rates
Jurisdiction and venue
Sales and excise taxes
Securities
Securities and Exchange Commission (SEC)
Tax administration and collection, taxpayers
Taxation of foreign income
Wages and earnings

Summary:
action_date: 2013-12-05
text: 
Sequester Delay and Stop Tax Haven Abuse Act - 
Title I: Extension of Sequestration
 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 to: (1) repeal the across-the-board reductions in discretionary spending mandated by such Act in FY2014 and FY2015, and (2) increase the budget authority in FY2016 for the security and nonsecurity budget categories.
 

Title II: Deterring the Use of Tax Havens for Tax Evasion
 - Authorizes the Secretary of the Treasury to impose restrictions on foreign jurisdictions or financial institutions operating in the United States that are of primary money laundering concern or that significantly impede U.S. tax enforcement. 
 
Amends the Internal Revenue Code to: 
 
 
expand reporting requirements for U.S. persons who hold an interest in a passive foreign investment company; 
 
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; 
 
treat certain foreign corporations managed and controlled primarily in the United States as domestic corporations for U.S. tax purposes; 
 
require tax withholding agents and financial institutions to report certain information about beneficial owners of foreign-owned financial accounts; 
 
treat swap payments sent offshore as taxable U.S. source income; and 
 
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).

 

Title III: Other Measures to Combat Tax Haven Abuses
 - 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, gross revenues, payments made to governments, and other financial information; and (2) impose a fine for failure to disclose any holdings or transactions involving equity or debt instruments known to involve a foreign entity that would otherwise be subject to disclosure requirements. 
 
Makes investment advisers and persons engaged in forming new business entities subject to anti-money laundering requirements. 
 

Title IV Ending Corporate Offshore Tax Avoidance
 - Imposes new restrictions on U.S. corporations and other entities with foreign income with respect to: (1) tax deductions allocable to deferred foreign income, (2) the recalculation of foreign income taxes, (3) intangible property transferred overseas, (4) tax evasion activities by U.S. corporations reincorporating in a foreign country, and (5) loans to U.S. shareholders from controlled foreign corporations.


Legislative actions:
action_date: 2013-12-05
text: Referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services, and the Budget, 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: 2013-12-05
text: Referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services, and the Budget, 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: 2013-12-05
text: Referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services, and the Budget, 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: 2013-12-05
text: Introduced in House
action_date: 2013-12-05
text: Introduced in House