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HR 9761

Disclosure of Tax Havens and Offshoring Act

119th Congress Introduced by Eleanor Holmes Norton and 1 co-sponsor

Requires large multinationals to report revenue, taxes, employees, and assets by country to boost cross-border transparency.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 9761

Overview

HR 9761, introduced in the 119th Congress, is a bill to amend the Securities Exchange Act of 1934 to require country-by-country reporting. It was introduced in the House and referred to the House Committee on Financial Services. The sponsors include Eleanor Holmes Norton and Brittany Pettersen as co-sponsors.

Purpose and intent

  • To enhance corporate transparency by mandating that certain entities disclose financial and related information on a country-by-country basis.
  • The aim is to improve visibility into where profits, revenues, and activities occur, as well as where risks and potential tax or regulatory concerns arise across jurisdictions.
  • Aligns with broader efforts to combat tax avoidance, aid enforcement, and provide investors and regulators with clearer cross-border operational data.

Key provisions and changes (provisional outline based on standard country-by-country reporting frameworks)

  • Mandate: Covered entities would be required to report certain financial and operational metrics for each jurisdiction or country in which they operate.
  • Coverage: Likely targets large multinational corporations (including foreign subsidiaries and branches) that meet specified size or revenue thresholds.
  • Reporting elements: Typical country-by-country data may include:
    • Revenue by country
    • Profit or loss before tax by country
    • Income tax paid or accrued in each country
    • Amount of employees by country
    • Tangible assets by country
    • Breakdowns of certain activities or business lines by jurisdiction
  • Disclosure format: The bill would set standards for the format, content, and confidentiality of reports, potentially including public or regulator-only accessibility.
  • Enforcement and penalties: Provisions would describe how compliance is monitored and what penalties apply for noncompliance or misreporting.
  • Public interest vs. confidentiality: Provisions may address whether disclosures are publicly accessible and how trade secrets or sensitive information are protected.

Who would be affected

  • Large multinational corporations subject to Securities Exchange Act reporting requirements, especially those with significant cross-border operations.
  • Corporate executives, financial officers, and compliance teams responsible for global reporting and regulatory filings.
  • Investors and financial markets, which would gain access to more granular, country-level data about multinational entities.
  • U.S. regulatory agencies (e.g., Securities and Exchange Commission) tasked with enforcing the reporting requirements.

Procedural and timeline aspects

  • Status: Referred to the House Committee on Financial Services (as of the latest action).
  • Next steps: If the committee approves, the bill would proceed through the usual House passage processes (committee markup, floor consideration) and then onward to the Senate or further actions as per the legislative calendar.
  • Effective date: The bill would specify when the reporting requirements take effect (e.g., a set date or a phased timeline), along with any transition provisions for entities to come into compliance.

Potential impacts and considerations

  • Increased transparency for investors and regulators by providing jurisdiction-level data on revenue, profits, taxes, and employment.
  • Administrative burden on covered entities due to expanded reporting requirements and data collection across multiple jurisdictions.
  • Possible implications for tax planning, transfer pricing, and public scrutiny of multinational corporate activities.
  • Public disclosure aspects could influence market perceptions and stakeholder decision-making.

Note: This summary is based on the bill’s title and available action history. For precise statutory language, definitions, thresholds, reporting elements, confidentiality protections, and enforcement mechanisms, please refer to the official bill text and committee reports.

Compiled from official sources — confirm details with the bill’s official record.

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