,i #aacth ,,congress #ast ,session ,h4 ,r4 #bgdj ,,in ,,the ,,house ,,of ,,representatives ,july #ah1 #bjac ,mr4 ,mc,nerney 7for himself1 ,mr4 ,bishop of ,new ,york1 ,mr4 ,peters of ,michigan1 and ,mr4 ,cartwright7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,oversight and ,government ,reform1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide for the identification of corporate tax haven countries and increased penalties for tax evasion practices in haven countries that ship ,united ,states jobs overseas1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,stop ,outsourcing and ,create ,american ,jobs ,act of #bjac4 #b4 ,identifying corporate tax haven countries and increasing penalties for tax evasion practices in haven countries that ship ,united ,states jobs overseas ,not later than one year after the date of the enactment of this ,act1 the ,secretary of the ,treasury shall develop and publish a list of countries the ,secretary determines to be corporate tax haven countries4 ,in developing such list1 the ,secretary may consider the following criteria3 7#a7 ,tax rate in the country4 7#b7 ,lack of effective exchange of information between governments4 7#c7 ,lack of transparency in financial services sector4 7#d7 ,lack of requirements of substantial economic activity4 7#e7 ,incentives which may encourage a ,united ,states corporation to invest abroad rather than domestically4 7#f7 ,other factors deemed relevant by the ,secretary4 ,the ,secretary shall review and update such list every #c years4 #c4 ,increase in penalties for corporate tax evasion practices concerning returns1 documents1 and activities relating to tax haven countries 7a7 ,accuracy-,related penalty on underpayments ,section #fffb of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7k7 ,increase in penalty in case of tax haven countries 7#a7 ,in general ,in the case of any portion of an underpayment by a corporation for a taxable year which involves an undisclosed foreign financial asset located in a tax haven country at any time during such taxable year1 subsection 7a7 shall be applied with respect to such portion by substituting #fj percent for #bj percent4 7#b7 ,tax haven country ,for purposes of this subsection1 the term tax haven country means a country on the list published under section #b7;a7 of the ,stop ,outsourcing and ,create ,american ,jobs ,act of #bjac4 4 7b7 ,understatements with respect to reportable transactions ,section #fffb;,a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7f7 ,increase in penalty in case of tax haven countries ,in the case of any portion of a reportable transaction understatement by a corporation for a taxable year which involves a transaction that originates1 terminates1 or otherwise occurs in a tax haven country 7as defined in section #fffb7k77#b771 subsection 7a7 shall be applied with respect to such portion by substituting #dj percent for #bj percent4 4 7c7 ,fraud penalty ,section #fffc of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7d7 ,increase in penalty in case of tax haven countries ,in the case of any fraud by a corporation involving an activity occurring in a tax haven country 7as defined in section #fffb7k77#b771 subsection 7a7 shall be applied by substituting #ajj percent for #ge percent4 4 7d7 ,erroneous claim for credit or refund ,section #ffgf of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7d7 as subsection 7e7 and by inserting after subsection 7c7 the following new subsection3 7d7 ,increase in penalty in case of tax haven countries ,in the case of claim or credit by a corporation for any excessive amount due for credits or refunds involving funds held or invested in a tax haven country 7as defined in section #fffb7k77#b771 subsection 7a7 shall be applied by substituting #dj percent for #bj percent4 4 7e7 ,willful attempt ,to evade or defeat tax ,section #gbja of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new sentence3 ,in the case of an attempt by a corporation which involves a tax haven country 7as defined in section #fffb7k77#b771 the preceding sentence shall be applied by substituting #a1jjj1jjj for #ejj1jjj44 7f7 ,fraud and false statements ,section #gbjf of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new sentence3 ,in the case of an offense by a corporation described in the preceding sentence which involves a tax haven country 7as defined in section #fffb7k77#b771 the preceding sentence shall be applied by substituting #a1jjj1jjj for #ejj1jjj44 7g7 ,fraudulent returns1 statements1 or other documents ,section #gbjg of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new sentence3 ,in the case of an offense by a corporation described in either of the two preceding sentences which involves a tax haven country 7as defined in section #fffb7k77#b771 the appropriate sentence shall be applied by substituting #aej1jjj for #ej1jjj44 7h7 ,effective date 7#a7 ,the amendments made by subsections 7a7 and 7b7 shall apply to underpayments attributable to transactions entered into after the date on which the list developed under section #b is first published4 7#b7 ,the amendment made by subsection 7c7 shall apply to returns the due date for which 7determined without regard to extensions7 is after the date on which the list developed under section #b is first published4 7#c7 ,the amendment made by subsection 7d7 shall apply to refunds and credits attributable to transactions entered into after the date on which the list developed under section #b is first published4 7#d7 ,the amendment made by subsections 7e71 7f71 and 7g7 shall apply to offenses committed after the date on which the list developed under section #b is first published4 #d4 ,preferences in ,government contracts 7a7 ,preference ,a ,federal department or agency may give a preference in the award of a contract for the procurement of goods or services in a fiscal year to any potential contractor that has not engaged in outsourcing during the fiscal year preceding the fiscal year in which the contract is awarded4 7b7 ,requirement ,to request outsourcing information from potential contractors 7#a7 ,in general ,in any solicitation for offers for a contract issued by a ,federal department or agency in a fiscal year1 the department or agency shall request each offeror for the contract to provide information regarding whether the offeror engaged in outsourcing during the fiscal year preceding the fiscal year in which the contract is to be awarded4 7#b7 ,penalty and debarment ,any offeror found to be in violation of paragraph 7#a71 including making a false statement regarding the offeror's engagement in outsourcing-- 7,a7 shall1 notwithstanding section #ajja of title #ah1 ,united ,states ,code1 be liable to the ,united ,states for a civil penalty in an amount not more than the value of the contract the offeror is seeking2 and 7,b7 shall be debarred1 by the head of the department or agency soliciting the offer1 from contracting with the ,federal ,government for a period of two years starting on the date on which the offeror is found to be in violation of paragraph 7#a74 7#c7 ,effective date ,this subsection shall apply to solicitations for contracts issued on and after the date occurring one year after the date of the enactment of this ,act4 7c7 ,outsourcing defined ,in this section1 the term outsourcing means the laying off of a ,united ,states worker from a job1 and the hiring or contracting for the same job to be performed in a foreign country4 #e4 ,deficit reduction ,amounts which the ,secretary of the ,treasury estimates are received in the ,treasury by reason of this ,act are hereby set aside for the reduction of the public debt4