Enacted Budget Fact Sheet
Closing Tax Loopholes
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Closing Loopholes to Promote Tax Fairness
- $450 million in loophole closures were enacted.
| Combined Reporting: requires corporations that conduct substantial inter-corporate transactions with affiliated companies to file a combined, rather than separate corporate franchise tax. | $328 million |
| REIT Loophole for large banks: begins phase-in of the elimination of the deduction for certain subsidiary dividends received by a parent company from a real estate investment trust (REIT) or regulated investment company (RIC) to ensure payment of taxes on income earned by the REIT or RIC. | $87 million |
| Grandfathered Corporations: closes a loophole that allows banks to use certain subsidiaries to shelter income. | $19 million |
| Tax shelter reporting: provide Tax and Finance with permanent statutory tools to address increasing use of abusive tax shelters. | $16 million |
| TOTAL | $450 million |
NOTE: The information on this page is taken from the 2007-2008 Financial Plan.