,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #aeef  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,april #ae1 #bjac ,mr4
 ,doggett 7= himself1 ,mr4 ,de,fazio1   
,ms4 ,de,lauro1 ,mr4 ,d+ell1 ,mr4       
,moran1 ,ms4 ,lee ( ,cali=nia1 ,mr4     
,ru%1 ,mr4 ,g>am5di1 ,ms4 ,s*ak[sky1    
,mr4 ,mc,dermott1 ,mr4 ,cicill9e1 & ,mr4
 ,coh57 introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to prev5t corporations f 
exploit+ tax treaties to evade taxation 
( ,unit$ ,/ates income4  #a4 ,%ort title
 ,?is ,act may be cit$ z ! ,fairness 9  
,int]national ,taxation ,act4  #b4      
,limitation on treaty b5efits = c]ta9   
d$uctible paym5ts  7a7 ,9 g5]al ,section
 #hid ( ! ,int]nal ,rev5ue ,code ( #aihf
 7relat+ to income affect$ by treaty7 is
 am5d$ by add+ at ! end ! foll[+ new    
subsection3  7d7 ,limitation on treaty  
b5efits = c]ta9 d$uctible paym5ts  7#a7 
,9 g5]al ,9 ! case ( any d$uctible      
relat$-p>ty paym5t1 any )hold+ tax      

impos$ "u *apt] #c 7& any tax impos$ "u 
subp>t ,a or ,b ( ?is "p7 ) respect to  
su* paym5t may n be r$uc$ "u any treaty 
( ! ,unit$ ,/ates unless any su* )hold+ 
tax w\ld be r$uc$ "u a treaty ( ! ,unit$
 ,/ates if su* paym5t 7 made directly to
 ! =eign p>5t corporation4  7#b7        
,d$uctible relat$-p>ty paym5t ,=        
purposes ( ?is subsection1 ! t]m        
d$uctible relat$-p>ty paym5t means any  
paym5t made1 directly or indirectly1 by 
any p]son to any o!r p]son if ! paym5t  
is all[able z a d$uction "u ?is *apt] & 
bo? p]sons are memb]s ( ! same =eign    
controll$ gr\p ( entities4  7#c7 ,=eign 
controll$ gr\p ( entities ,= purposes ( 
?is subsection--  7,a7 ,9 g5]al ,! t]m  
=eign controll$ gr\p ( entities means a 
controll$ gr\p ( entities ! common p>5t 
( :i* is a =eign corporation4  7,b7     
,controll$ gr\p ( entities ,! t]m       
controll$ gr\p ( entities means a       
controll$ gr\p ( corporations z def9$ 9 
section #aefc7;a77#a71 except t--  7i7 m
 ?an #ej p]c5t %all be sub/itut$ = at   

lea/ #hj p]c5t ea* place x appe>s !re91 
&  7ii7 ! det]m9ation %all be made )\t  
reg>d to subsections 7a77#d7 & 7b77#b7 (
 section #aefc4  ,a p>tn]%ip or any o!r 
entity 7o!r ?an a corporation7 %all be  
treat$ z a memb] ( a controll$ gr\p (   
entities if su* entity is controll$ 7)9 
! mean+ ( section #ied7;d77#c77 by      
memb]s ( su* gr\p 7includ+ any entity   
treat$ z a memb] ( su* gr\p by reason ( 
?is s5t5ce74  7#d7 ,=eign p>5t          
corporation ,= purposes ( ?is           
subsection1 ! t]m =eign p>5t corporation
 means1 ) respect to any d$uctible      
relat$-p>ty paym5t1 ! common p>5t ( !   
=eign controll$ gr\p ( entities ref]r$  
to 9 p>agraph 7#c77;,a74  7#e7          
,regulations ,! ,secret>y may prescribe 
su* regulations or o!r guidance z are   
necess>y or appropriate to c>ry out !   
purposes ( ?is subsection1 includ+      
regulations or o!r guidance :i* provide 
=--  7,a7 ! treatm5t ( two or m p]sons z
 memb]s ( a =eign controll$ gr\p (      
entities if su* p]sons w\ld be ! common 

p>5t ( su* gr\p if treat$ z "o          
corporation1 &  7,b7 ! treatm5t ( any   
memb] ( a =eign controll$ gr\p (        
entities z ! common p>5t ( su* gr\p if  
su* treatm5t is appropriate tak+ into   
acc\nt ! economic relation%ips among su*
 entities4  4  7b7 ,effective date ,!   
am5dm5t made by ?is section %all apply  
to paym5ts made aft] ! date ( ! enactm5t
 ( ?is ,act4