An Act closing a corporate tax haven loophole
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill aims to close a loophole that allows corporations to avoid paying taxes by operating through shell companies in tax havens. It seeks to ensure that Massachusetts corporations pay their fair share of taxes, regardless of where their financial activities are primarily conducted. The legislation intends to increase transparency and prevent tax avoidance strategies that undermine the state’s revenue base. By addressing this loophole, the bill seeks to promote a more equitable tax system within Massachusetts.
Key provisions
- Requires corporations to report their financial activities and ownership structures.
- Prohibits corporations from sheltering income within tax havens.
- Mandates increased scrutiny of corporate structures to identify potential tax avoidance.
- Establishes penalties for corporations that fail to comply with the new reporting requirements.
- Directs the Department of Revenue to investigate and address corporate tax haven activity.
- Requires corporations to provide detailed information about their subsidiaries and affiliates.
- Expands the definition of ‘doing business’ to include activities conducted through tax havens.
- Creates a process for reviewing and updating the legislation to adapt to evolving tax avoidance strategies.
Who is affected
- Corporations operating in Massachusetts
- Taxpayers
- The Massachusetts Department of Revenue
Bill text
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Sponsors
Official sponsors from legislative records.
3 on record
Primary sponsor
Cosponsors
Rebecca L. Rausch
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