Bill Text: IL HB3436 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Creates the Illinois Corporate Responsibility and Tax Disclosure Act. Requires certain publicly traded corporations that do business in the State to file with the Secretary of State a statement containing information concerning the corporation's income tax liability. Provides that the Secretary of State shall make all information contained in those statements available to the public on an ongoing basis in the form of a searchable database accessible through the Internet. Provides that nothing in the Act requires reporting or allows disclosure of information that is confidential and may not be disclosed pursuant to the Internal Revenue Code or any other federal statute.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2015-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB3436 Detail]

Download: Illinois-2015-HB3436-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB3436 Introduced , by Rep. Barbara Flynn Currie SYNOPSIS AS INTRODUCED:
New Act
Creates the Illinois Corporate Responsibility and Tax Disclosure Act. Requires certain publicly traded corporations that do business in the State to file with the Secretary of State a statement containing information concerning the corporation's income tax liability. Provides that the Secretary of State shall make all information contained in those statements available to the public on an ongoing basis in the form of a searchable database accessible through the Internet. Provides that nothing in the Act requires reporting or allows disclosure of information that is confidential and may not be disclosed pursuant to the Internal Revenue Code or any other federal statute.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Illinois Corporate Responsibility and Tax Disclosure Act.
Section 5. Definitions. As used in this Act:
"Corporation" means any entity subject to the tax imposed
on corporations by Section 201 of the Illinois Income Tax Act
or by Section 11 of the Internal Revenue Code of 1986, as
amended, except that "qualified personal service
corporations", as defined in Section 448 of the Internal
Revenue Code of 1986, as amended, are exempt from this Act.
"Doing business in this State" means: owning or renting
real or tangible personal property physically located in this
State; having employees, agents, or representatives acting on
the corporation's behalf in this State; making sales of
tangible personal property to purchasers that take possession
of that property in this State; performing services for
customers located in this State; performing services in this
State; earning income from intangible personal property that
has a business situs in this State; engaging in regular and
systematic solicitation of sales in this State; being a partner
in a partnership engaged in any of the preceding activities in

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this State; or being a member of a limited liability company
engaged in any of the preceding activities in this State.
Section 10. Tax disclosure statement required.
(a) For each taxable year ending on or after December 31,
2015, the following corporations, if doing business in this
State, shall file a statement described in this Section with
the Secretary of State:
(1) all publicly traded corporations, including
corporations traded on foreign stock exchanges; and
(2) any corporation with respect to which 50% or more
of the voting stock is owned, directly or indirectly, by a
publicly traded corporation.
(b) This statement shall be filed annually in an electronic
format specified by the Secretary of State, pursuant to rules
adopted by the Secretary of State, no more than 30 days
following the filing of the corporation's tax return required
under Section 502 of the Illinois Income Tax Act, or, in the
case of a corporation that is not required to file such a tax
return, within 90 days after the filing of the corporation's
federal income tax return, including any federal consolidated
return in which the corporation is included.
(c) The statement shall contain the following information:
(1) the name of the corporation and the street address
of its principal executive office;
(2) if different from item (1), the name of any

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corporation that owns, directly or indirectly, 50% or more
of the voting stock of the corporation and the street
address of that corporation's principal executive office;
(3) the corporation's 4-digit North American Industry
Classification System code number;
(4) a unique code number, assigned by the Secretary of
State, to identify the corporation; that code number shall
remain constant from year to year; and
(5) the following information used in preparing or
contained in the corporation's most recent tax return filed
under the Illinois Income Tax Act, or, in the case of a
corporation that is not required to file a tax return under
the Illinois Income Tax Act, the information that would be
required to be reported on or used in preparing the tax
return if the corporation had been required to file such a
return:
(A) the taxable income of the corporation as
modified by paragraphs 203(b)(2)(A) through
203(b)(2)(E-16) of the Illinois Income Tax Act;
(B) the base income of the corporation;
(C) the apportionment factor in the State for the
corporation;
(D) the total business income of the corporation
apportioned to the State;
(E) the Illinois net operating loss deduction for
the corporation, if any;

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(F) the total non-business income of the
corporation and the amount of non-business income
allocated to the State;
(G) the net income of the corporation;
(H) the corporation's total State income tax
liability before credits;
(I) the corporation's total personal property tax
replacement tax liability before credits;
(J) tax credits claimed by the corporation, with
each credit individually enumerated;
(K) the net personal property tax replacement tax;
and
(L) the net corporate income tax.
(d) A corporation doing business in this State that is not
required to file a tax return under Section 502 of the Illinois
Income Tax Act may, in lieu of the statement under subsection
(c), elect to file a statement with the Secretary of State
containing the following information:
(1) the information specified in items (1) through (4)
of subsection (c) of this Section;
(2) an explanation of why the corporation is not
required to file a corporate income tax return in this
State; and
(3) a designation of whether the corporation's total
gross receipts from sales to purchasers in this State
during the taxable year was: (1) less than $10,000,000; (2)

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$10,000,000 or more but less than $50,000,000; (3)
$50,000,000 or more but less than $100,000,000; (4)
$100,000,000 or more but less than $250,000,000; or (5)
$250,000,000 or more.
Section 20. Supplemental information. Any corporation that
is required to submit a statement under this Act is permitted
to submit supplemental information that, in the judgment of the
corporation, could facilitate proper interpretation of the
information included in the statement. The method of public
dissemination of the information contained in the statements
required under Section 35 of this Act shall ensure that any
such supplemental information is publicly available and that
notification of its availability is made to any person seeking
information contained in the statement.
Section 25. Amended tax disclosure statements. If a
corporation files an amended federal or State income tax
return, then that corporation shall file a revised statement
under this Section within 60 calendar days after the amended
return is filed. If a corporation's tax liability for a tax
year is changed as the result of an uncontested audit
adjustment or final determination of liability by the
Department of Revenue, or by a court of law as provided for in
the Illinois Income Tax Act, then the corporation shall file a
revised statement under this Section within 60 calendar days

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after the final determination of liability.
Section 30. Public access to tax disclosure statements. The
statements required under this Act shall be public records. The
Secretary of State shall make all information contained in
those statements available to the public on an ongoing basis in
the form of a searchable database accessible through the
Internet. The Secretary of State shall set and collect from
persons requesting information in the statements reasonable
charges that cover the cost to the State of providing copies on
appropriate computer-readable media of the entire database for
statements filed during each calendar year as well as hard
copies of any individual annual statement for a specific
corporation. No statement for any corporation for a particular
tax year shall be publicly available until the first day of the
third calendar year following the calendar year in which the
particular tax year ends.
Section 35. Enforcing compliance. The accuracy of the
statements required under this Act shall be attested to in
writing by the chief operating officer of the corporation, and
shall be subject to audit by the Department of Revenue in the
course of and under the normal procedures applicable to
corporate income tax return audits. The Department of Revenue
shall develop and implement an oversight and penalty system
applicable to both the chief operating officer of the

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corporation and the corporation itself to ensure that
corporations doing business in this State, including those not
required to file a return under Section 502 of the Illinois
Income Tax Act, shall provide the required attestation and
disclosure statements, respectively, in a timely and accurate
manner. The maximum civil penalty may not exceed $100 per
statement for each day during which the corporation is
delinquent in filing an original statement under Section 10 or
an amended statement under Section 25. The Department of
Revenue shall publish the name and penalty imposed upon any
corporation subject to a penalty for failing to file the
required statement or filing an inaccurate statement.
Section 40. Rules. The Secretary of State and the
Department of Revenue shall adopt rules in accordance with the
Illinois Administrative Procedure Act as may be deemed
necessary to carry out the purposes of this Act.