Bill > S1569

This bill aims to close a corporate tax haven loophole by amending Section 32B of Chapter 63 of the General Laws. The key provisions include: 1) Defining a list of tax haven jurisdictions, such as Bermuda, Cayman Islands, and Switzerland, where corporations may be incorporated to avoid taxation. 2) Requiring the Commissioner to submit a biannual report to the Legislature with recommendations for additions or subtractions from the tax haven list, which will be made public. 3) Establishing criteria for the Commissioner to determine if a jurisdiction qualifies as a tax haven, such as having no or nominal effective tax rates and lacking transparency in tax laws and administration. 4) Allowing the Commissioner to require corporations making a "water's-edge election" (a tax accounting method) to submit detailed disclosure spreadsheets on their income, tax liabilities, and affiliations with entities in the listed tax haven jurisdictions. The overall aim of the bill is to close loopholes that allow corporations to avoid paying their fair share of taxes by shifting profits to low or no-tax jurisdictions.

Budget and Finance

https://malegislature.gov/Bills/190/S1569