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File #: 160199    Version: 0 Name:
Type: Bill Status: IN COMMITTEE
File created: 3/10/2016 In control: Committee on Finance
On agenda: Final action:
Title: Amending Title 17 of The Philadelphia Code, entitled "Contracts and Procurement," by adding language to bar the City from contracting with companies that use tax inversion or earnings stripping strategies to avoid paying taxes to the United States of America; all under certain terms and conditions.
Sponsors: Council President Clarke, Councilmember Henon
Indexes: CONTRACTS AND PROCUREMENT
Code sections: Title 17 - CONTRACTS AND PROCUREMENT
Attachments: 1. Bill No. 16019900.pdf
Title
Amending Title 17 of The Philadelphia Code, entitled "Contracts and Procurement," by adding language to bar the City from contracting with companies that use tax inversion or earnings stripping strategies to avoid paying taxes to the United States of America; all under certain terms and conditions.

Body
THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:

SECTION 1. Title 17 of The Philadelphia Code is hereby amended to read as follows:

TITLE 17. CONTRACTS AND PROCUREMENT.

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CHAPTER 17-100. PROCUREMENT CONTRACTS.

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ยง 17-104. Prerequisites to the Execution of City Contracts.

(1) Definitions. For the purpose of this subsection, the following definitions shall apply:

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(m) Tax Inversion Company. Any corporation that was legally domiciled in the United States of America that relocated its legal domicile on or after July 1, 2016, to a lower-tax nation, or corporate haven, and that currently retains its material operations in the United States of America. The term also includes any company that employs an earnings stripping strategy, whereby the company uses loans between different divisions, or subsidiaries, of the same company to shift profits out of the United States of America's jurisdiction and into lower-tax foreign jurisdictions.

[(m)](n) Terminating Business in Iran or Sudan. Has produced a plan to end doing business in Iran or Sudan, as applicable, within one year and has been implementing its plan in good faith in order to disinvest or cease business operations over the twelve month period following adoption of the plan.

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(4) Prohibited Contracts.

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(c) Tax Inversion Companies. In the procurement of goods and services, no City Agency may accept any bid from, nor enter into an original or renewal contract with, nor purchase any product manufactured by a tax inversion company.

[(c)](d) Contract Requirements.

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(.3) Each City bid and contract mus...

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