Stop Tax Haven Abuse Act

Bill: 116-hr-1712
Sponsor: Rep. Doggett, Lloyd [D-TX-35]
Introduced: 2019-03-13 in the House
Policy area: Taxation
Subjects: Accounting and auditing
Administrative law and regulatory procedures
Bank accounts, deposits, capital
Business records
Corporate finance and management
Department of the Treasury
Evidence and witnesses
Federal district courts
Financial services and investments
Foreign and international banking
Foreign and international corporations
Fraud offenses and financial crimes
Government information and archives
Government studies and investigations
Income tax deductions
Interest, dividends, interest rates
Jurisdiction and venue
Securities
Tax administration and collection, taxpayers
Taxation of foreign income
U.S. and foreign investments

Summary:
action_date: 2019-03-13
text: 

Stop Tax Haven Abuse Act

 
 This bill authorizes the Department of the Treasury to impose restrictions on foreign jurisdictions or financial institutions to counter money laundering and efforts to significantly impede U.S. tax enforcement. 
 
The bill amends the Internal Revenue Code to
 
 
 expand reporting requirements for certain foreign investments and accounts held by U.S. persons,
 
 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 tax purposes, 
 
treat swap payments sent offshore as taxable U.S. source income, 
 
require reporting of United States beneficial owners of foreign-owned financial accounts, 
 
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), and
 
 modify the rules for the taxation of inverted corporations (U.S. corporations that acquire foreign companies to reincorporate in a foreign jurisdiction with income tax rates lower than the United States). 
 
 
The bill amends the Securities Exchange Act of 1934 to (1) require corporations to disclose certain financial information on a country-by-country basis, and (2) impose penalties for failing to disclose offshore holdings. 
 
The bill makes investment advisers and persons engaged in forming new business entities subject to new anti-money laundering requirements.


Legislative actions:
action_date: 2019-03-13
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: 2019-03-13
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: 2019-03-13
text: Introduced in House
action_date: 2019-03-13
text: Introduced in House