74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
SA to SB 39
 
LC 1687/SB 39-4
 
                      SENATE AMENDMENTS TO
                         SENATE BILL 39
 
               By COMMITTEE ON FINANCE AND REVENUE
 
                             April 3
 
  On page 1 of the printed bill, line 2, delete ', 314.415,
314.840 and' and insert 'and 314.415'.
  In line 3, delete '316.189'.
  Delete lines 5 through 7.
  In line 8, delete '16' and insert '13'.
  Delete lines 13 through 22 and insert:
  ' (b) A transaction without economic substance in which an
Oregon taxable corporation:
  ' (A) Transfers income-producing assets to a real estate
investment trust owned directly or indirectly by the corporation;
and
  ' (B) With respect to dividends paid from the real estate
investment trust, claims a dividend-received deduction and the
real estate investment trust claims a dividend-paid deduction.
  ' (c) A transaction without economic substance in which an
Oregon taxable corporation:
  ' (A) Transfers income-producing assets to a regulated
investment company owned directly or indirectly by the
corporation; and
  ' (B) With respect to dividends paid from the regulated
investment company, claims a dividend-received deduction and the
regulated investment company claims a dividend-paid deduction.
  ' (2) 'Oregon taxable corporation' means a corporation:
  ' (a) That does business in Oregon, is organized in Oregon or
has income from Oregon sources; or
  ' (b) That is owned by an Oregon income or corporate excise
taxpayer.'.
  On page 2, delete lines 1 through 9.
  In line 10, delete '(2)' and insert '(3)'.
  After line 13, insert:
  ' (4) 'Transaction without economic substance' means a
transaction for which the taxpayer cannot demonstrate a business
purpose other than tax savings.'.
  In line 15, delete 'listed' and insert 'reportable'.
  In line 17, delete 'listed' and insert 'reportable'.
  In line 21, delete 'listed' and insert 'reportable'.
  In line 24, delete 'listed' and insert 'reportable'.
  In line 26, delete 'listed' and insert 'reportable'.
  Delete lines 28 through 45 and delete page 3.
  On page 4, delete lines 1 and 2 and insert:
  '  { +  NOTE: + } Sections 4 through 7 were deleted by
amendment.  Subsequent sections were not renumbered.'.
  In line 5, delete '40' and insert '60'.
  In line 6, after 'section' insert 'applies to listed
transaction understatements discovered or reported on or after
January 1, 2008, and'.
  Delete lines 20 through 45.
  On page 5, delete lines 1 through 15 and insert:
  '  { +  SECTION 9. + }  { + (1) If a taxpayer fails to report
to the Department of Revenue a reportable transaction as required
by section 3 of this 2007 Act, there shall be added to the tax
liability of the taxpayer for the tax year a penalty as follows:
  ' (a) Individual taxpayers, $3,300.
  ' (b) Corporation taxpayers, $16,700.
  ' (2) If the reportable transaction is a listed transaction, in
lieu of the penalty provided in subsection (1) of this section,
the penalty shall be as follows:
  ' (a) Individual taxpayers, $33,000.
  ' (b) Corporation taxpayers, $66,000.
  ' (3) This section applies to tax years beginning on or after
January 1, 2007. + } '
  '  { +  NOTE: + } Sections 10 and 11 were deleted by amendment.
Subsequent sections were not renumbered.'.
  In line 29, delete '10 or'.
  Delete lines 31 through 45.
  On page 6, delete lines 1 through 35 and insert:
  '  { +  NOTE: + } Sections 14 through 17 were deleted by
amendment.  Subsequent sections were not renumbered.'.
  Delete lines 42 through 44 and insert:
  ' (3) If the department finds that a return reports or reflects
the use of a listed transaction, as defined in section 2 of this
2007 Act, and that use of that listed transaction results in a
deficiency in tax paid, notice of that deficiency may be given at
any time within nine years after the return was filed.'.
  On page 8, delete lines 21 through 27 and insert:
  '  { +  NOTE: + } Section 19 was deleted by amendment.
Subsequent sections were not renumbered.'.
  On page 10, line 44, delete 'to 16' and insert ', 8, 12 and
13'.
  Delete pages 11 through 17.
  On page 18, delete lines 1 through 25 and insert:
  '  { +  NOTE: + } Sections 22 through 31 were deleted by
amendment.  Subsequent sections were not renumbered.'.
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