S.Amdt. 4320

SA 4320. Mr. SANDERS submitted an amendment intended to be proposed
to amendment SA 4301 proposed by Mr. Baucus to the bill H.R. 4213, to
amend the Internal Revenue Code of 1986 to extend certain expiring
provisions, and for other purposes; which was ordered to lie on the
table; as follows:

At the end of title IV, insert the following:

SEC. 4__. ALTERNATIVE MINIMUM TAX RATE FOR PUBLIC
CORPORATIONS INCORPORATED IN FOREIGN TAX
HAVENS.

(a) In General.--Section 11 of the is amended by adding at
the end the following:
``(e) Alternative Minimum Tax for Public Corporations
Incorporated in Foreign Tax Havens.--
``(1) Tax imposed.--A tax is hereby imposed (in addition to
any other tax imposed by this subtitle) for each taxable year
on the net book income of each disqualified corporation.
``(2) Amount of tax.--The amount of the tax imposed by
paragraph (1) shall be equal to the excess (if any) of--
``(A) 35 percent of the net book income of the disqualified
corporation, over
``(B) the sum of any other taxes imposed on the income of
such disqualified corporation under this subtitle.
``(3) Not treated as tax for certain purposes.--The tax
imposed by paragraph (1) shall not be treated as a tax
imposed under this chapter for the purpose of determining--
``(A) the amount of any credit allowable under this
chapter, or
``(B) the amount of the minimum tax imposed by section 55.
``(4) Disqualified corporation.--For purposes of this
subsection--
``(A) In general.--The term `disqualified corporation'
means any public corporation which--
``(i) is chartered or incorporated in an offshore secrecy
jurisdiction, or
``(ii) owns, directly or indirectly, 50 percent or more (by
vote or value) of the stock of a corporation chartered or
incorporated in an offshore secrecy jurisdiction.
``(B) Public corporation.--The term `public corporation'
means any issuer (as defined in section 3 of the Securities
Exchange Act of 1934 (15 U.S.C. 78c)), the securities of
which are registered under section 12 of that Act (15 U.S.C.
78l), or that is required to file reports under section 15(d)
of that Act (15 U.S.C. 78o(d)), or that files or has filed a
registration statement that has not yet become effective
under the Securities Act of 1933 (15 U.S.C. 77a et seq.), and
that it has not withdrawn.
``(C) Offshore secrecy jurisdiction.--
``(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 subsection.
``(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 this title, unless the Secretary also
determines that such country has effective information
exchange practices.
``(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.
``(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--

``(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 this title,
``(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 this title, and

[[Page S4755]]

``(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.

``(v) Initial list of offshore secrecy jurisdictions.--For
purposes of this subparagraph, each of the following foreign
jurisdictions, which have been previously and publicly
identified by the Internal Revenue Service as secrecy
jurisdictions in Federal court proceedings, shall be deemed
listed by the Secretary as an offshore secrecy jurisdiction
unless delisted by the Secretary under clause (vi)(II):

``(I) Anguilla.
``(II) Antigua and Barbuda.
``(III) Aruba.
``(IV) Bahamas.
``(V) Barbados.
``(VI) Belize.
``(VII) Bermuda.
``(VIII) British Virgin Islands.
``(IX) Cayman Islands.
``(X) Cook Islands.
``(XI) Costa Rica.
``(XII) Cyprus.
``(XIII) Dominica.
``(XIV) Gibraltar.
``(XV) Grenada.
``(XVI) Guernsey/Sark/Alderney.
``(XVII) Hong Kong.
``(XVIII) Isle of Man.
``(XIX) Jersey.
``(XX) Latvia.
``(XXI) Liechtenstein.
``(XXII) Luxembourg.
``(XXIII) Malta.
``(XXIV) Nauru.
``(XXV) Netherlands Antilles.
``(XXVI) Panama.
``(XXVII) Samoa.
``(XXVIII) St. Kitts and Nevis.
``(XXIX) St. Lucia.
``(XXX) St. Vincent and the Grenadines.
``(XXXI) Singapore.
``(XXXII) Switzerland.
``(XXXIII) Turks and Caicos.
``(XXXIV) Vanuatu.

``(vi) Modifications to list.--The Secretary--

``(I) shall add to the list under clause (i) jurisdictions
which meet the requirements of clause (ii), and
``(II) may remove from such list only those jurisdictions
which do not meet the requirements of clause (ii).

``(5) Net book income.--For purposes of this subsection,
the term `net book income' means, with respect to a taxable
year, the net income (if any) reported by the disqualified
corporation in its financial statement to its shareholders,
subject to such regulations as the Secretary may prescribe.
``(6) Controlled group.--For purposes of applying this
subsection, all component members of a controlled group of
corporations (as defined in section 1563) shall be treated as
one corporation.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2010.
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