[Pages S4754-S4755]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  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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