Bill > S2041

This bill proposes to amend a Massachusetts tax law to address corporate tax havens by expanding reporting and disclosure requirements for businesses. Specifically, the bill defines a comprehensive list of 34 jurisdictions considered tax havens, including places like the Cayman Islands, Bermuda, and Singapore, and establishes criteria for identifying additional tax havens. The bill requires the state tax commissioner to submit a biannual report to the Legislature with recommendations about tax haven jurisdictions, and mandates that corporations making a "water's-edge" election (a method of calculating state corporate taxes that limits taxation to domestic and certain foreign income) must provide detailed disclosure about their income reporting in these jurisdictions. The criteria for identifying a tax haven include factors such as having no or very low effective tax rates, reporting disproportionately large income compared to the jurisdiction's economic activity, having laws that impede tax information exchange, lacking transparency, or being recognized by experts as a tax haven. The bill aims to increase transparency and potentially close loopholes that allow corporations to minimize their tax liability by reporting income in jurisdictions with extremely favorable tax rates.

Budget and Finance

https://malegislature.gov/Bills/194/S2041