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Thursday, April 05, 2007
Senate Eyes S. 396, Dorgan Anti-Tax Haven Measure
According a Deloitte Tax LLP report of March 26, Senate budget writers are looking at revenues generated by S. 396, an anti-tax haven bill introduced by Sen. Byron Dorgan (D-ND), to help pay for the budget resolution.
The Dorgan bill would deny deferral benefits to multinationals locating subsidiaries in low-tax jurisdictions in order to avoid U.S. tax. Under the bill, foreign corporations setting up "shell" corporations in one of 40 tax haven countries defined in the bill would be taxed as domestic U.S. companies (unless they earn most of their income from trade or business in that jurisdiction).
The bill was offered up as an amendment to the budget resolution but was pulled at the last minute. Deloitte reports that Finance Committee staff members are studying the bill for its revenue raising potential, which Dorgan tax staffer Allan Huffman estimates at $14.7 billion over 10 years.
The Senate Finance Committee is ultimately responsible for determining which revenue provisions the Senate will adopt.
Posted by Dana Chasin
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