Illinois General Assembly - Full Text of HB3627
Illinois General Assembly

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Full Text of HB3627  98th General Assembly



State of Illinois
2013 and 2014


Introduced , by Rep. Barbara Flynn Currie


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.

LRB098 11936 HLH 45298 b






HB3627LRB098 11936 HLH 45298 b

1    AN ACT concerning State government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Illinois Corporate Responsibility and Tax Disclosure Act.
6    Section 5. Definitions. As used in this Act:
7    "Corporation" means any entity subject to the tax imposed
8on corporations by Section 201 of the Illinois Income Tax Act
9or by Section 11 of the Internal Revenue Code of 1986, as
10amended, except that "qualified personal service
11corporations", as defined in Section 448 of the Internal
12Revenue Code of 1986, as amended, are exempt from this Act.
13    "Doing business in this State" means: owning or renting
14real or tangible personal property physically located in this
15State; having employees, agents, or representatives acting on
16the corporation's behalf in this State; making sales of
17tangible personal property to purchasers that take possession
18of that property in this State; performing services for
19customers located in this State; performing services in this
20State; earning income from intangible personal property that
21has a business situs in this State; engaging in regular and
22systematic solicitation of sales in this State; being a partner
23in a partnership engaged in any of the preceding activities in



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1this State; or being a member of a limited liability company
2engaged in any of the preceding activities in this State.
3    Section 10. Tax disclosure statement required.
4    (a) For each taxable year ending on or after December 31,
52013, the following corporations, if doing business in this
6State, shall file a statement described in this Section with
7the Secretary of State:
8        (1) all publicly traded corporations, including
9    corporations traded on foreign stock exchanges.
10        (2) any corporation with respect to which 50% or more
11    of the voting stock is owned, directly or indirectly, by a
12    publicly traded corporation.
13    (b) This statement shall be filed annually in an electronic
14format specified by the Secretary of State, pursuant to rules
15adopted by the Secretary of State, no more than 30 days
16following the filing of the corporation's tax return required
17under Section 502 of the Illinois Income Tax Act, or, in the
18case of a corporation that is not required to file such a tax
19return, within 90 days after the filing of the corporation's
20federal income tax return, including any federal consolidated
21return in which the corporation is included.
22    (c) The statement shall contain the following information:
23        (1) the name of the corporation and the street address
24    of its principal executive office;
25        (2) if different from item (1), the name of any



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1    corporation that owns, directly or indirectly, 50% or more
2    of the voting stock of the corporation and the street
3    address of that corporation's principal executive office;
4        (3) the corporation's 4-digit North American Industry
5    Classification System code number;
6        (4) a unique code number, assigned by the Secretary of
7    State, to identify the corporation; that code number shall
8    remain constant from year to year; and
9        (5) the following information used in preparing or
10    contained in the corporation's most recent tax return filed
11    under the Illinois Income Tax Act, or, in the case of a
12    corporation that is not required to file a tax return under
13    the Illinois Income Tax Act, the information that would be
14    required to be reported on or used in preparing the tax
15    return if the corporation had been required to file such a
16    return:
17            (A) the taxable income of the corporation as
18        modified by paragraphs 203(b)(2)(A) through
19        203(b)(2)(E-16) of the Illinois Income Tax Act;
20            (B) the base income of the corporation;
21            (C) the apportionment factor in the State for the
22        corporation;
23            (D) the total business income of the corporation
24        apportioned to the State;
25            (E) the Illinois net operating loss deduction for
26        the corporation, if any;



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1            (F) the total non-business income of the
2        corporation and the amount of non-business income
3        allocated to the State;
4            (G) the net income of the corporation;
5            (H) the corporation's total State income tax
6        liability before credits;
7            (I) the corporation's total personal property tax
8        replacement tax liability before credits;
9            (J) tax credits claimed by the corporation, with
10        each credit individually enumerated;
11            (K) the net personal property tax replacement tax;
12        and
13            (L) the net corporate income tax.
14    (d) A corporation doing business in this State that is not
15required to file a tax return under Section 502 of the Illinois
16Income Tax Act may, in lieu of the statement under subsection
17(c), elect to file a statement with the Secretary of State
18containing the following information:
19        (1) the information specified in items (1) through (4)
20    of subsection (c) of this Section;
21        (2) an explanation of why the corporation is not
22    required to file a corporate income tax return in this
23    State; and
24        (3) a designation of whether the corporation's total
25    gross receipts from sales to purchasers in this State
26    during the taxable year was: (1) less than $10,000,000; (2)



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1    $10,000,000 or more but less than $50,000,000; (3)
2    $50,000,000 or more but less than $100,000,000; (4)
3    $100,000,000 or more but less than $250,000,000; or (5)
4    $250,000,000 or more.
5    Section 20. Supplemental information. Any corporation that
6is required to submit a statement under this Act is permitted
7to submit supplemental information that, in the judgment of the
8corporation, could facilitate proper interpretation of the
9information included in the statement. The method of public
10dissemination of the information contained in the statements
11required under Section 35 of this Act shall ensure that any
12such supplemental information is publicly available and that
13notification of its availability is made to any person seeking
14information contained in the statement.
15    Section 25. Amended tax disclosure statements. If a
16corporation files an amended federal or State income tax
17return, then that corporation shall file a revised statement
18under this Section within 60 calendar days after the amended
19return is filed. If a corporation's tax liability for a tax
20year is changed as the result of an uncontested audit
21adjustment or final determination of liability by the
22Department of Revenue, or by a court of law as provided for in
23the Illinois Income Tax Act, then the corporation shall file a
24revised statement under this Section within 60 calendar days



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1after the final determination of liability.
2    Section 30. Public access to tax disclosure statements. The
3statements required under this Act shall be public records. The
4Secretary of State shall make all information contained in
5those statements available to the public on an ongoing basis in
6the form of a searchable database accessible through the
7Internet. The Secretary of State shall set and collect from
8persons requesting information in the statements reasonable
9charges that cover the cost to the State of providing copies on
10appropriate computer-readable media of the entire database for
11statements filed during each calendar year as well as hard
12copies of any individual annual statement for a specific
13corporation. No statement for any corporation for a particular
14tax year shall be publicly available until the first day of the
15third calendar year following the calendar year in which the
16particular tax year ends.
17    Section 35. Enforcing compliance. The accuracy of the
18statements required under this Act shall be attested to in
19writing by the chief operating officer of the corporation, and
20shall be subject to audit by the Department of Revenue in the
21course of and under the normal procedures applicable to
22corporate income tax return audits. The Department of Revenue
23shall develop and implement an oversight and penalty system
24applicable to both the chief operating officer of the



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1corporation and the corporation itself to ensure that
2corporations doing business in this State, including those not
3required to file a return under Section 502 of the Illinois
4Income Tax Act, shall provide the required attestation and
5disclosure statements, respectively, in a timely and accurate
6manner. The maximum civil penalty may not exceed $100 per
7statement for each day during which the corporation is
8delinquent in filing an original statement under Section 10 or
9an amended statement under Section 25. The Department of
10Revenue shall publish the name and penalty imposed upon any
11corporation subject to a penalty for failing to file the
12required statement or filing an inaccurate statement.
13    Section 40. Rules. The Secretary of State and the
14Department of Revenue shall adopt rules in accordance with the
15Illinois Administrative Procedure Act as may be deemed
16necessary to carry out the purposes of this Act.
17    Section 45. Disclosure of confidential information.
18Nothing in this Act shall require reporting or allow disclosure
19of information that is confidential and may not be disclosed
20pursuant to the Internal Revenue Code or any other federal