An Act To Prevent Tax Haven Abuse
Maine Legislature, Session 127, LD 0341
Committee: Taxation
Sponsors: TIPPING-SPITZ, LIBBY, ALLEY, MOONEN, STANLEY, STUCKEY, TEPLER, HASKELL, MIRAMANT, VALENTINO
Amends: 36 MRSA §5200

Legislative Document 
No. 341 
H.P. 235 
House of Representatives, February 10, 2015 
An Act To Prevent Tax Haven Abuse 
Reference to the Committee on Taxation suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative TIPPING-SPITZ of Orono. 
Cosponsored by Senator LIBBY of Androscoggin and 
Representatives: ALLEY of Beals, MOONEN of Portland, STANLEY of Medway, 
STUCKEY of Portland, TEPLER of Topsham, Senators: HASKELL of Cumberland, 
MIRAMANT of Knox, VALENTINO of York. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §5200, sub-§5, as enacted by PL 2005, c. 457, Pt. FFF, §1 and 
affected by §2, is repealed and the following enacted in its place: 
5.  Net income.  For purposes of this section, "net income" means for any taxable 
year the total of the following as modified by section 5200-A: 
A.  The taxable income of the taxpayer for that taxable year under the laws of the 
United States; and 
B.  The taxable income or loss of any corporation that is a member of a unitary group 
and that is incorporated in any of the following jurisdictions:  the Principality of 
Andorra, Anguilla, Antigua and Barbuda, Aruba, the Commonwealth of the 
Bahamas, the Kingdom of Bahrain, Barbados, Belize, Bermuda, the British Virgin 
Islands, the Cayman Islands, the Cook Islands, the Republic of Cyprus, the 
Commonwealth of Dominica, Gibraltar, Grenada, the Bailiwick of Guernsey, the 
Republic of Ireland, the Isle of Man, the Bailiwick of Jersey, the Republic of Liberia, 
the Principality of Liechtenstein, the Grand Duchy of Luxembourg, Malta, the 
Republic of the Marshall Islands, the Republic of Mauritius, the Principality of 
Monaco, Montserrat, the Republic of Nauru, the Caribbean Netherlands, Niue, the 
Independent State of Samoa, the Republic of San Marino, the Republic of Seychelles, 
the Federation of St. Christopher and Nevis, St. Lucia, St. Vincent and the 
Grenadines, the Turks and Caicos Islands, the United States Virgin Islands and the 
Republic of Vanuatu. 
Sec. 2.  Rules.  The State Tax Assessor shall adopt rules to determine the income or 
loss for a corporation that is a member of a unitary group that is not otherwise required to 
file a consolidated federal return and to prevent double taxation or double deduction of 
any amount included in the computation of net income under the Maine Revised Statutes, 
Title 36, section 5200, subsection 5.  Rules adopted pursuant to this section are major 
substantive rules as described in Title 5, chapter 375, subchapter 2-A. 
Sec. 3.  Application.  This Act applies to tax years beginning on or after January 1, 
2016. 
SUMMARY 
This bill requires corporations that file unitary income tax returns in Maine to include 
income from certain jurisdictions outside the United States in net income when 
apportioning income among tax jurisdictions.  The State Tax Assessor is required to 
adopt major substantive rules to determine the income or loss attributable to such 
corporations and to prevent double taxation or deduction of income.