HF 904

as introduced - 87th Legislature (2011 - 2012) Posted on 03/07/2011 09:31am

A bill for an act
relating to taxation; providing contract authority to commissioner of revenue;
regulating abusive transfer pricing schemes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin TAX COLLECTION; ABUSIVE TRANSFER PRICING SCHEMES.
new text end

new text begin (a) The commissioner of revenue shall issue a request for proposals for a contract
to enhance the state's ability to identify and collect tax revenues from taxpayers that are
using abusive transfer pricing schemes to reduce the amount of their income subject to
tax under Minnesota Statutes, chapter 290.
new text end

new text begin (b) The commissioner shall enter into a two-year contract for the services specified in
paragraph (a) by September 1, 2011. The contract must incorporate a performance-based
compensation system whereby the vendor is not paid until tax revenues are collected and
deposited in the state general fund.
new text end

new text begin (c) An amount sufficient to pay the vendor is appropriated from the general fund
to the Department of Revenue.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end