An Act To Prevent Tax Haven Abuse
Maine Legislature, Session 130, LD 0428
Committee: Taxation
Sponsors: TEPLER, CHIPMAN, COLLINGS, GRAMLICH, MATLACK, DAUGHTRY
Amends: 36 MRSA §5200

Legislative Document
No. 428
H.P. 308
House of Representatives, February 11, 2021
An Act To Prevent Tax Haven Abuse
Received by the Clerk of the House on February 9, 2021.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative TEPLER of Topsham.
Cosponsored by Senator CHIPMAN of Cumberland and
Representatives: COLLINGS of Portland, GRAMLICH of Old Orchard Beach, MATLACK of 
St. George, Senator: DAUGHTRY of Cumberland.
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affected by §2, is repealed and the following enacted in its place: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, Curacao, 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, the Republic of 
Malta, the Republic of the Marshall Islands, the Republic of Mauritius, the Principality 
of Monaco, Montserrat, the Republic of Nauru, the Kingdom of the Netherlands, the 
Caribbean Netherlands, Niue, the Republic of Panama, the Independent State of 
Samoa, the Republic of San Marino, the Republic of Seychelles, the Republic of 
Singapore, Sint Maarten, the Federation of St. Christopher and Nevis, St. Lucia, St. 
Vincent and the Grenadines, Switzerland, the Turks and Caicos Islands, the United 
States Virgin Islands and the Republic of Vanuatu.
The State Tax Assessor shall review annually the list of jurisdictions in paragraph B and 
report to the joint standing committee of the Legislature having jurisdiction over taxation 
matters whether any jurisdictions should be added to or deleted from the list based on 
whether the jurisdiction taxes no or only nominal income, the jurisdiction lacks effective 
exchange of information with other taxing authorities, the jurisdiction lacks governmental 
transparency and the jurisdiction protects business with no substantial activity.
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, 
2022.
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.  The assessor is required to submit 
an annual report to the joint standing committee of the Legislature having jurisdiction over 
taxation matters regarding whether jurisdictions should be added to or deleted from the list 
of tax havens based on specified criteria.