HI SR87

Request Director of Taxation to convene a task force to evaluate worldwide combined reporting ("complete reporting") as a method for calculating corporate income taxes in Hawaii.

Task force to compare worldwide combined reporting with other methods such as tax haven list approaches to determine suitability for Hawaii.

Task force to evaluate methods based on administration and auditing costs, burden on corporations of different sizes, expected tax revenue increases, and other relevant criteria.

January 2019 Institute on Taxation and Economic Policy report estimates Hawaii loses $38,000,000 annually by not requiring worldwide combined reporting to prevent income shifting to offshore subsidiaries.

Task force to include Director of Taxation (chair), Senate President designee, House Speaker designee, Chief State Economist, one University of Hawaii economist, and Tax Foundation of Hawaii member; report due 20 days before 2020 Regular Session.