S.Amdt. 5344

1. Adds SEC. 1083. SENSE OF THE SENATE at the end of subtitle G of title X

   Adds a section

   In S. 3001 · Placed on Calendar Senate

   (2) in paragraph (2), by striking "implemented" and inserting "developed".

   Inserted: SEC. 1083. SENSE OF THE SENATE.

   Inserted: (a) In General.--It is the sense of the Senate that the United States Government should not award any Federal contracts, grants, or loans to any offshore secrecy jurisdiction company.

   Inserted: (b) Definitions and Special Rules.--For purposes of this section--

   Inserted: (1) Contract.--

   Inserted: (A) In general.--The term "contract" means a binding agreement entered into by an Executive agency for the purpose of obtaining property or services, but does not include--

   Inserted: (i) a contract designated by the head of the agency as assisting the agency in the performance of disaster relief authorities; or

   Inserted: (ii) a contract designated by the head of the agency as necessary to the national security of the United States.

   Inserted: (B) Executive agency.--The term "executive agency" has the meaning given such term in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).

   Inserted: (2) Offshore secrecy jurisdiction company.--

   Inserted: (A) In general.--The term "offshore secrecy jurisdiction company" means any person which the Commissioner of Internal Revenue determines that for the purpose of avoiding Federal tax obligations--

   Inserted: (i) is organized in an offshore secrecy jurisdiction; or

   Inserted: (ii) is a member of a domestically controlled group of entities any member of which is organized in an offshore secrecy jurisdiction.

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   Inserted: (B) Offshore secrecy jurisdiction.--

   Inserted: (i) In general.--The term "offshore secrecy jurisdiction" means any foreign jurisdiction which is listed by the Secretary as an offshore secrecy jurisdiction for purposes of this section.

   Inserted: (ii) Determination of jurisdictions on list.--A jurisdiction shall be listed under clause (i) if the Secretary determines that such jurisdiction has corporate, business, bank, or tax secrecy rules and practices which, in the judgment of the Secretary, unreasonably restrict the ability of the United States to obtain information relevant to the enforcement of the Internal Revenue Code of 1986, unless the Secretary also determines that such country has effective information exchange practices.

   Inserted: (iii) Secrecy or confidentiality rules and practices.--For purposes of clause (ii), corporate, business, bank, or tax secrecy or confidentiality rules and practices include both formal laws and regulations and informal government or business practices having the effect of inhibiting access of law enforcement and tax administration authorities to beneficial ownership and other financial information.

   Inserted: (iv) Ineffective information exchange practices.--For purposes of clause (ii), a jurisdiction shall be deemed to have ineffective information exchange practices unless the Secretary determines, on an annual basis, that--

   Inserted: (I) such jurisdiction has in effect a treaty or other information exchange agreement with the United States that provides for the prompt, obligatory, and automatic exchange of such information as is forseeably relevant for carrying out the provisions of the treaty or agreement or the administration or enforcement of such Code,

   Inserted: (II) during the 12-month period preceding the annual determination, the exchange of information between the United States and such jurisdiction was in practice adequate to prevent evasion or avoidance of United States income tax by United States persons and to enable the United States effectively to enforce such Code, and

   Inserted: (III) during the 12-month period preceding the annual determination, such jurisdiction was not identified by an intergovernmental group or organization of which the United States is a member as uncooperative with international tax enforcement or information exchange and the United States concurs in such identification.

   Inserted: (C) Domestically controlled group of entities.--

   Inserted: (i) In general.--The term "domestically controlled group of entities" means a controlled group of entities the common parent of which is a domestic corporation.

   Inserted: (ii) Controlled group of entities.--The term "controlled group of entities" means a controlled group of corporations as defined in section 1563(a)(1) of the Internal Revenue Code of 1986, except that--

   Inserted: (I) "more than 50 percent" shall be substituted for "at least 80 percent" each place it appears therein, and

   Inserted: (II) the determination shall be made without regard to subsections (a)(4) and (b)(2) of section 1563 of such Code.

   Inserted: A partnership or any other entity (other than a corporation) shall be treated as a member of a controlled group of entities if such entity is controlled (within the meaning of section 954(d)(3) of such Code) by members of such group (including any entity treated as a member of such group by reason of this sentence).

   Inserted: (D) Person.--The term "person" means--

   Inserted: (i) a corporation; or

   Inserted: (ii) a partnership or any other entity (other than a corporation).

   Inserted: (E) Secretary.--The term "Secretary" means the Secretary of the Treasury or the Secretary's delegate.

   Original wording

   At the end of subtitle G of title X, add the following:

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As printed