No Dollars for Ayatollahs Act

Bill: 114-hr-5550
Sponsor: full_name: Rep. Roskam, Peter J. [R-IL-6]
Introduced: 2016-06-21
Policy area: Taxation
Subjects: Currency

International monetary system and foreign exchange

Iran

Middle East

Sales and excise taxes
Latest action: action_date: 2016-06-21
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2016-06-21
action_desc: Introduced in House
text: <p><b>No Dollars for Ayatollahs Act </b></p> <p>This bill amends the Internal Revenue Code to impose an excise tax on any U.S. person who clears or transfers more than $1 million U.S. dollars per year for the direct or indirect benefit of the government of Iran or any Iranian person. The tax is equal to 100% of the amount that is cleared or transferred.</p> <p>The tax also applies to transactions by certain related entities, including the clearing or transferring of U.S dollars by: (1) a foreign member of a U.S. person's worldwide affiliated group, or (2) a foreign person who is not a member of a U.S. person's worldwide affiliated group, but has a correspondent account or payable-through account for or with such a member or a U.S. person. The tax applies to transactions by a foreign person described above if the member or U.S. person for or with whom the account is maintained knew or had reason to know the dollars were being cleared or transferred.</p>

tv_txt: I 114th CONGRESS 2d Session H. R. 5550 IN THE HOUSE OF REPRESENTATIVES June 21, 2016 Mr. Roskam (for himself, Mr. Boustany , Mr. Tiberi , Mr. Buchanan , Mr. Sam Johnson of Texas , Mr. Reichert , Mr. Young of Indiana , Mr. Nunes , and Mrs. Black ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to impose an excise tax on United States dollar clearing done for the benefit of Iran or Iranian persons.

1. Short title This Act may be cited as the No Dollars for Ayatollahs Act . 2. Excise tax on dollar clearing transactions with respect to Iran (a) In general Subtitle D of the Internal Revenue Code of 1986 is amended by adding at the end the following new chapter: 50A Clearing transactions with respect to Iran Sec. 5000D. Imposition of tax on dollar clearing transactions with respect to Iran. 5000D. Imposition of tax on dollar clearing transactions with respect to Iran (a) Imposition of tax There is hereby imposed on any United States person who clears or transfers United States dollars for the direct or indirect benefit of the Government of Iran or any Iranian person a tax equal to 100 percent of the dollar amount cleared or transferred. (b) Transaction by certain related entities If any United States dollars are so cleared or transferred by— (1) a foreign member of a United States person’s worldwide affiliated group, or (2) a foreign person who— (A) is not a member of a United States person’s worldwide affiliated group, but (B) has a correspondent account or payable-through account for or with such a member or a United States person, such dollars shall be treated for purposes of subsection (a) as being cleared or transferred by the United States person. The preceding sentence shall apply with respect to a foreign person described in paragraph (2) only if the member or United States person, as the case may be, for or with whom the account is maintained knew or had reason to know such dollars were being so cleared or transferred. (c) Threshold limitation (1) In general The tax imposed by subsection (a) shall only apply with respect to a United States person for a calendar year to the extent the dollar amounts so cleared or transferred during the calendar year by such United States person (including any such amounts treated under subsection (b) as cleared or transferred by such person) exceed $1,000,000. (2) Members of group For purposes of paragraph (1), amounts cleared or transferred by a non-foreign member of such person’s worldwide affiliated group shall be treated as cleared or transferred by such person. (d) Definitions For purposes of this section— (1) Worldwide affiliated group The term worldwide affiliated group means an affiliated group as defined in section 1504(a), determined— (A) by substituting more than 50 percent for at least 80 percent each place it appears, and (B) without regard to section 1504(b). A partnership or any other entity (other than a corporation) shall be treated as a member of a worldwide affiliated group if such entity is controlled (within the meaning of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by reason of this sentence). (2) Correspondent account The term correspondent account means an account established to receive deposits from, or make payments on behalf of, a financial institution or handle other financial transactions related to such institution. (3) Payable-through account The term payable-through account means an account, including a transaction account (as defined in section 19(b)(1)(C) of the Federal Reserve Act), opened at a depository institution by another financial institution by means of which the financial institution permits its customers to engage, either directly or through a subaccount, in banking activities usually in connection with the business of banking. (4) Account The term account means a formal banking or business relationship established to provide regular services, dealings, and other financial transactions and includes a demand deposit, savings deposit, or other transaction or asset account and a credit account or other extension of credit. (5) Financial institution The term financial institution shall have the meaning given such term under section 5312(a)(2) of title 31, United States Code. (6) Iranian person The term Iranian person means— (A) any person in Iran, (B) any citizen or resident of Iran, (C) any foreign partnership or foreign corporation which is organized or operated in Iran (or is a member of such a person’s worldwide affiliated group), (D) any foreign trust if— (i) a court within Iran is able to exercise primary supervision over the administration of the trust, and (ii) one or more persons described in subparagraph (A) or (B) have the authority to control all substantial decisions of the trust, and (E) any foreign estate a beneficiary of which is a person described in subparagraph (A). (e) Special rules (1) Certain licensed transactions This section shall not apply in the case of a transaction authorized under part 535, 560, or 561 of title 31, Code of Federal Regulations, as in effect on June 1, 2016. (2) Humanitarian assistance This section shall not apply in the case of any transaction permitted— (A) under section 413 of the Iran Threat Reduction and Syria Human Rights Act of 2012, or (B) under a license issued under the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ) if— (i) such transaction relates solely to— (I) the provision of agricultural commodities, food, medicine, or medical devices to Iran, or (II) the provision of humanitarian assistance to the people of Iran, and (ii) the President submits a copy of the license to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate, the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate. (3) Intelligence activities This section shall not apply in the case of intelligence activities subject to reporting requirements under title V of the National Security Act of 1947 ( 50 U.S.C. 3091 et seq. ). (4) Joint and several liability If more than 1 person is liable under subsection (a) or (b) with respect to a dollar clearing or transferring transaction, all such persons shall be jointly and severally liable under such subsection with respect to such transaction. . (b) Clerical amendment The table of chapters for subtitle D of such Code is amended by adding at the end the following new item: Chapter 50A. Clearing transactions with respect to Iran . (c) Effective date The amendments made by this section shall apply to transactions after June 21, 2016.