Sen. Carl Levin (D-Mi.) introduced the Stop Tax Haven Abuse Bill of 2009 (the "Bill") in the Senate on Monday, Mar. 2. Rep. Lloyd Doggett (D-Tex.) concurrently introduced an identical bill in the House of Representatives. Treasury Secretary Timothy Geithner announced the administration's strong support for the legislation at a House Ways and Means Committee meeting the following day.
Sen. Levin introduced a similar bill, which was co-sponsored by then-Senator Barack Obama, in 2007. The Bill, like its 2007 predecessor, contains numerous provisions generally intended to prevent U.S. taxpayers from holding assets in accounts of financial institutions located in so-called tax havens without disclosing the existence of those accounts to the Internal Revenue Service. The Bill, however, contains several important additions to its predecessor which, if enacted, would significantly affect hedge funds, CDO and CLO vehicles, many other businesses operated through offshore entities and investors in those entities. We will distribute a more thorough analysis of this topic early next week.
Full Text is available here (PDF)
Full Story: Obama Administration Supports Tax Haven Crackdown, Reuters (Mar. 3, 2009)