AUGUSTA - A new law sponsored by Rep. Denise Tepler, D-Topsham, that aims to prevent tax haven abuse by corporations who do business in Maine goes into effect today.
LD 428 requires Maine Revenue Services to review the state's corporate income tax law and recommend changes to close loopholes that currently allow corporations to hide their Maine-generated profits in foreign countries with lower tax rates. According to the Institute of Taxation and Economic Policy, Maine loses $52 million annually as a result of tax haven abuse.
"This new law is an important step to achieving tax fairness for every business operating in our state," said Tepler. "Large, multinational corporations should not be allowed to evade their fair share of Maine obligations while small, locally owned businesses are forced to pick up the tab. Directing Maine Revenue Services to review this issue will help implement changes to bring these dollars back to Maine to support our communities, schools, roads, bridges and state parks."
Maine Revenue Services will issue a report to the Legislature's Taxation Committee with its findings and recommendations by February 1, 2023.
Tepler is serving her fourth term in the Maine House and represents the town of Topsham. She serves as the House chair of the Health Coverage, Insurance and Financial Services Committee.
Contact:
Katie Walsh [Tepler], c. 776-2122