[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1363 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                S. 1363

    To amend the Internal Revenue Code of 1986 to prevent dividends 
 received from corporations in tax havens from receiving a reduced tax 
                                 rate.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 30, 2005

 Mr. Baucus (for himself, Mr. Jeffords, and Mr. Kerry) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to prevent dividends 
 received from corporations in tax havens from receiving a reduced tax 
                                 rate.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. MODIFICATION TO THE DEFINITION OF QUALIFIED FOREIGN 
              CORPORATION.

    (a) In General.--Clause (ii) of section 1(h)(11)(C) of the Internal 
Revenue Code of 1986 (relating to dividends on stock readily tradable 
on United States securities market) is amended by striking ``by such 
corporation if the stock'' and all that follows and inserting ``by such 
corporation if--
                                    ``(I) the stock with respect to 
                                which such dividend is paid is readily 
                                tradable on an established securities 
                                market in the United States, and
                                    ``(II) such corporation is created 
                                or organized under the laws of a 
                                foreign country which has a 
                                comprehensive income tax system which 
                                the Secretary determines is 
                                satisfactory for the purposes of this 
                                paragraph.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to dividends received after the date of the enactment of this Act.
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