,i #aac? ,,congress #a/ ,session ,h4 ,r4 #aeee ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,april #ae1 #bjac ,mr4 ,doggett 7= himself1 ,ms4 ,bass1 ,mr4 ,bec]ra1 ,ms4 ,*u1 ,mr4 ,cicill9e1 ,mr4 ,cony]s1 ,mr4 ,de,fazio1 ,ms4 ,de,gette1 ,ms4 ,de,lauro1 ,mr4 ,d+ell1 ,mr4 ,ellison1 ,mr4 ,johnson ( ,georgia1 ,ms4 ,lee ( ,cali=nia1 ,mr4 ,mc,dermott1 ,mr4 ,mc,govern1 ,mr4 ,moran1 ,mr4 ,ru%1 ,mr4 ,%]man1 ,mr4 ,tonko1 ,ms4 ,tsongas1 ,mr4 ,g>am5di1 ,ms4 ,s*ak[sky1 ,mr4 ,payne1 & ,mr4 ,coh57 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to r$uce int]national tax avoidance & re/ore a level play+ field = ,am]ican bus9esses4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,int]national ,tax ,competitiv5ess ,act ( #bjac4 #b4 ,treatm5t ( =eign corporations manag$ & controll$ 9 ! ,unit$ ,/ates z dome/ic corporations 7a7 ,9 g5]al ,section #ggja ( ! ,int]nal ,rev5ue ,code ( #aihf 7relat+ to def9itions7 is am5d$ by r$esignat+ subsection 7p7 z subsection 7q7 & by ins]t+ aft] subsection 7o7 ! foll[+ new subsection3 7p7 ,c]ta9 corporations manag$ & controll$ 9 ! ,unit$ ,/ates treat$ z dome/ic = income tax 7#a7 ,9 g5]al ,not)/&+ subsection 7a77#d71 9 ! case ( a corporation describ$ 9 p>agraph 7#b7 if-- 7,a7 ! corporation w\ld n o!rwise be treat$ z a dome/ic corporation = purposes ( ?is title1 b 7,b7 ! managem5t & control ( ! corporation occurs1 directly or indirectly1 prim>ily )9 ! ,unit$ ,/ates1 !n1 solely = purposes ( *apt] #a 7& any o!r provision ( ?is title relat+ to *apt] #a71 ! corporation %all be treat$ z a dome/ic corporation4 7#b7 ,corporation describ$ 7,a7 ,9 g5]al ,a corporation is describ$ 9 ?is p>agraph if-- 7i7 ! /ock ( su* corporation is regul>ly trad$ on an e/abli%$ securities m>ket1 or 7ii7 ! aggregate gross assets ( su* corporation 7or any pr$ecessor !re(71 includ+ assets "u managem5t = inve/ors1 :e!r held directly or indirectly1 at any "t dur+ ! taxable ye> or any prec$+ taxable ye> is #ej1jjj1jjj or m4 7,b7 ,g5]al exception ,a corporation %all n be treat$ z describ$ 9 ?is p>agraph if-- 7i7 su* corporation 0 treat$ z a corporation describ$ 9 ?is p>agraph 9 a prec$+ taxable ye>1 7ii7 su* corporation-- 7,i7 is n regul>ly trad$ on an e/abli%$ securities m>ket1 & 7,,ii7 has1 & is reasonably expect$ to cont9ue to h1 aggregate gross assets 7includ+ assets "u managem5t = inve/ors1 :e!r held directly or indirectly7 ( less ?an #ej1jjj1jjj1 & 7iii7 ! ,secret>y grants a waiv] to su* corporation "u ?is subp>agraph4 7,c7 ,exception f gross assets te/ ,subp>agraph 7,a77ii7 %all n apply to a corporation :i* is a controll$ =eign corporation 7z def9$ 9 section #ieg7 & :i* is a memb] ( an affiliat$ gr\p 7z def9$ section #aejd1 b det]m9$ )\t reg>d to section #aejd7;b77#c77 ! common p>5t ( :i*-- 7i7 is a dome/ic corporation 7det]m9$ )\t reg>d to ?is subsection71 & 7ii7 has sub/antial assets 7o!r ?an ca% & ca% equival5ts & o!r ?an /ock ( =eign subsidi>ies7 held = use 9 ! active conduct ( a trade or bus9ess 9 ! ,unit$ ,/ates4 7#c7 ,managem5t & control 7,a7 ,9 g5]al ,! ,secret>y %all prescribe regulations = purposes ( det]m9+ cases 9 :i* ! managem5t & control ( a corporation is to be treat$ z occurr+ prim>ily )9 ! ,unit$ ,/ates4 7,b7 ,executive (fic]s & s5ior managem5t ,su* regulations %all provide t-- 7i7 ! managem5t & control ( a corporation %all be treat$ z occurr+ prim>ily )9 ! ,unit$ ,/ates if sub/antially all ( ! executive (fic]s & s5ior managem5t ( ! corporation :o ex]cise day-to-day responsibility = mak+ decisions involv+ /rategic1 f9ancial1 & op]ational policies ( ! corporation are locat$ prim>ily )9 ! ,unit$ ,/ates1 & 7ii7 individuals :o are n executive (fic]s & s5ior managem5t ( ! corporation 7includ+ individuals :o are (fic]s or employees ( o!r corporations 9 ! same *a9 ( corporations z ! corporation7 %all be treat$ z executive (fic]s & s5ior managem5t if su* individuals ex]cise ! day-to-day responsibilities ( ! corporation describ$ 9 clause 7i74 7,c7 ,corporations prim>ily hold+ inve/m5t assets ,su* regulations %all also provide t ! managem5t & control ( a corporation %all be treat$ z occurr+ prim>ily )9 ! ,unit$ ,/ates if-- 7i7 ! assets ( su* corporation 7directly or indirectly7 consi/ prim>ily ( z sets be+ manag$ on behalf ( inve/ors1 & 7ii7 decisions ab\t h[ to inve/ ! assets are made 9 ! ,unit$ ,/ates4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ on or aft] ! date :i* is #b ye>s aft] ! date ( ! enactm5t ( ?is ,act4 #c4 ,curr5t taxation ( royalties & o!r income f intangibles receiv$ f a controll$ =eign corporation 7a7 ,repeal ( look-,?ru rule = royalties receiv$ f controll$ =eign corporations ,p>agraph 7#f7 ( section #ied7;c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 by /rik+ r5ts1 & royalties 9 subp>agraph 7,a7 & ins]t+ & r5ts1 & 7#b7 by /rik+ 1 r5t1 or royalty bo? places x appe>s 9 subp>agraph 7,b7 & ins]t+ or r5t4 7b7 ,entities n p]mitt$ ,to be disreg>d$ 9 det]m9+ royalties ,subsection 7c7 ( section #ied ( su* ,code is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#g7 ,all royalties tak5 into acc\nt ,= purposes ( det]m9+ ! =eign p]sonal hold+ company income :i* consi/s ( royalties1 ?is subsection %all be appli$ )\t reg>d to any election to disreg>d any entity :i* w\ld be tak5 into acc\nt = ,f$]al income tax purposes b = su* election4 4 7c7 ,c]ta9 o!r income d]iv$ f ,unit$ ,/ates intangibles tak5 into acc\nt z subp>t ,f income ,subsection 7d7 ( section #ied ( su* ,code is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#e7 ,special rule = c]ta9 products produc$ pursuant to intangibles made available by ,unit$ ,/ates p]sons ,= purposes ( ?is subsection1 p]sonal prop]ty %all be treat$ z hav+ be5 pur*as$ f a relat$ p]son if any intangible prop]ty 7)9 ! mean+ ( section #icf7;h77#c77;,b77 made available to a controll$ =eign corporation1 directly or indirectly1 by a relat$ p]son :i* is a ,unit$ ,/ates p]son contributes1 directly or indirectly1 to ! production ( su* p]sonal prop]ty by ! controll$ =eign corporation4 ,! prec$+ s5t5ce %all n apply to any p]sonal prop]ty produc$ directly by ! controll$ =eign corporation1 )\t reg>d to any election to disreg>d any entity :i* w\ld be tak5 into acc\nt = ,f$]al income tax purposes b = su* election4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s ( =eign corporations beg9n+ aft] ,decemb] #ca1 #bjac1 & to taxable ye>s ( ,unit$ ,/ates %>ehold]s )9 :i* or ) :i* su* tax ye>s ( su* =eign corporations end4 #d4 ,taxation ( boot receiv$ 9 reorganizations 7a7 ,9 g5]al ,p>agraph 7#b7 ( section #cef7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 by /rik+ ,if an ex*ange & ins]t+ ,except z o!rwise provid$ by ! ,secret>y-- 7,a7 ,9 g5]al ,if an ex*ange 2 7#b7 by /rik+ !n !re %all be & all t foll[s ?r\gh ,febru>y #bh1 #aiac & ins]t+ !n ! am\nt ( o!r prop]ty or money %all be treat$ z a divid5d to ! ext5t ( ! e>n+s & pr(its ( ! corporation2 & 7#c7 by add+ at ! end ! foll[+ new subp>agraph3 7,b7 ,c]ta9 reorganizations ,9 ! case ( a reorganization describ$ 9 section #cfh7;a77#a77;,d7 ) respect to :i* ! requirem5ts ( subp>agraphs 7,a7 & 7,b7 ( section #ced7;b77#a7 are met 7or any o!r reorganization specifi$ by ! ,secret>y71 9 apply+ subp>agraph 7,a7-- 7i7 ! e>n+s & pr(its ( ea* corporation :i* is a p>ty to ! reorganization %all be tak5 into acc\nt1 & 7ii7 ! am\nt :i* is a divid5d 7& s\rce !re(7 %all be det]m9$ "u rules simil> to ! rules ( p>agraphs 7#b7 & 7#e7 ( section #cjd7;b74 4 7b7 ,e>n+s & pr(its ,p>agraph 7#g7 ( section #cab7n7 ( su* ,code is am5d$ by add+ at ! end ! foll[+3 ,a simil> rule %all apply to an ex*ange to :i* section #cef7;a77#a7 applies44 7c7 ,con=m+ am5dm5t ,p>agraph 7#a7 ( section #cef7;a7 ( su* ,code is am5d$ by /rik+ !n ! ga9 & ins]t+ !n 7except z provid$ 9 p>agraph 7#b77 ! ga94 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to ex*anges aft] ! date ( ! enactm5t ( ?is ,act4