100 S T A T. 2592
P U B L I C L A W 9 9 - 5 1 4 — O C T. 22, 1986 (b) A G R E E M E N T S TO ALLEVIATE CERTAIN PROBLEMS RELATING TO
TAX ADMINISTRATION.—Subsection (a) shall apply to G u a m, American Samoa, or the Northern M a r i a n a Islands only if (and so long as) an implementing a g r e e m e n t is in effect between the United States and such possession with respect to— (1) the elimination of double taxation involving taxation by < such possession and taxation by the United States, (2) the establishment of rules under which the evasion or , avoidance of United States income tax shall not be permitted or facilitated by such possession, (3) the exchange of information between such possession and the United States for purposes of tax administration, and (4) the resolution of other problems arising in connection with the administration of the tax laws of such possession or the United States. Any such implementing a g r e e m e n t shall be executed on behalf of the United States by the Secretary of the Treasury after consultation with the Secretary of the Interior. (c) R E V E N U E S N O T TO D E C R E A S E. — The to t a l a m o u n t of the r e v e n u e
received by any possession referred to in subsection (a) pursuant to its tax laws during the implementation year and each of the 4 fiscal years thereafter shall not be less than the revenue (adjusted for inflation) which w a s received by such possession pursuant to tax laws for its last fiscal year before the implementation year. (d) NONDISCRIMINATORY T R E A T M E N T R E Q U I R E D. — Nothing in any
tax law of a possession referred to in subsection (a) may discriminate against any United States person or any resident (corporate or otherwise) of any other possession. (e) ENFORCEMENT. —
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(1) IN GENERAL.—If the Secretary of the Treasury (after consultation with the Secretary of the Interior) determine s that any possession has failed to comply with subsection (c) or (d), the Secretary of the Treasury shall so notify the Governor of such possession in writing. If such possession does not comply with subsection (c) or (d) (as the case may be) within 90 days of such notification, the Secretary of the Treasury shall notify the Congress of such noncompliance. Unless the Congress by law provides otherwise, the m i r r o r system of taxation shall be reinstated in such possession and shall be in full force and effect for taxable years beginning after such notification to the Congress. (2) SPECIAL RULE FOR REVENUE REQUIREMENTS.—If the failure
to comply with subsection (c) is for good cause and does not jeopardize the fiscal integrity of the possession, the Secretary may waive the requirements of subsection (c) for such period as he determines appropriate. ,..« (f) DEFINITIONS AND SPECIAL RULES. — ' '" ^ (1) IMPLEMENTATION YEAR.—For purposes of t h i s section, the
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term "implementation year " means the 1st fiscal year of the possession in which the tax laws authorized by subsection (a) t a k e effect. (2) MIRROR SYSTEM.—For purposes of this section, the m i r r o r system of taxation consists of the provisions of law (in effect on the day before the date of the e n a c t m e n t of this Act) which m a k e the provisions of the income tax laws of the United States (as in effect from time to time) in effect in a possession of the United States.
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