[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1401 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1401

To amend the Internal Revenue Code of 1986 to remove United States tax 
  barriers inhibiting competitiveness of United States owned business 
                  operating in the European Community.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 18, 1993

  Mr. Gibbons introduced the following bill; which was read twice and 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to remove United States tax 
  barriers inhibiting competitiveness of United States owned business 
                  operating in the European Community.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
    Section 1. Same Country Rules.--Section 954 of such Code (relating 
to foreign base company income) is amended by adding at the end thereof 
a new subsection as follows:
    ``(h) Special Rule for European Community Activities.--
            ``(1) In general.--For purposes of subsections (d) and (e), 
        the countries comprising the European Community shall 
        constitute a single country.
            ``(2) Definition.--For purposes of paragraph (1), the term 
        ``European Community'' shall include countries:
                    ``(A) which are members of the Council of Ministers 
                of the European Communities (Belgium, Denmark, France, 
                Greece, the Irish Republic, Italy, Luxembourg, The 
                Netherlands, Portugal, Spain, the Federal Republic of 
                Germany, and the United Kingdom) and
                    ``(B) which--
                            ``(i) have a maximum statutory tax rate 
                        greater than 90 percent of the maximum rate of 
                        tax specified in section 11(b), and
                            ``(ii) do not exempt from taxation pursuant 
                        to a tax holiday, preferential statutory rate 
                        or similar special rule income of a controlled 
                        foreign corporation described in subsection (d) 
                        or (e) (determined without regard to this 
                        subsection).''
    Sec. 2. Effective Date.--The amendment made by section 1 shall be 
effective for taxable years beginning after December 31, 1993.

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