US HB5125 | 2015-2016 | 114th Congress
Status
Spectrum: Partisan Bill (Democrat 50-0)
Status: Introduced on April 29 2016 - 25% progression, died in committee
Action: 2016-04-29 - Referred to the House Committee on Ways and Means.
Pending: House Ways And Means Committee
Text: Latest bill text (Introduced) [PDF]
Status: Introduced on April 29 2016 - 25% progression, died in committee
Action: 2016-04-29 - Referred to the House Committee on Ways and Means.
Pending: House Ways And Means Committee
Text: Latest bill text (Introduced) [PDF]
Summary
Corporate EXIT Fairness Act Corporate EXpatriates and Inverters Tax Fairness Act This bill amends the Internal Revenue Code to set forth rules governing corporate inversions (i.e., the practice of relocating a domestic corporation's legal domicile to a lower-tax nation while retaining its business activities in the higher-tax country of origin) and corporate expatriations. Specifically, the bill requires payment of tax on the deferred overseas profits of U.S. multinational corporations or partnerships before they reincorporate or organize in a foreign country. Additionally, any stock of a controlled foreign corporation in connection with a corporate expatriation would be treated as sold for its fair market value as of the date of expatriation and be subject to U.S. taxation. The bill expands the definitions of "corporate inversion" and "corporate expatriation" and revises rules relating to the taxation of inverted corporations. A foreign corporation that acquires the assets of a U.S. corporation or partnership after April 29, 2016, shall be treated as an inverted corporation and thus subject to U.S. taxation if, after such acquisition: (1) the expanded affiliated group which includes the foreign corporation does not have substantial business activities in the foreign country in which the corporation is created or organized, when compared to the total business activities of such expanded affiliated group; and (2) more than 50% of the foreign corporation is held by former shareholders or partners of the domestic corporation or partnership, or the management or control of the expanded affiliated group occurs primarily within the United States, and such expanded affiliated group has significant domestic business activities.
Title
Corporate EXIT Fairness Act Corporate EXpatriates and Inverters Tax Fairness Act
Sponsors
History
| Date | Chamber | Action |
|---|---|---|
| 2016-04-29 | House | Referred to the House Committee on Ways and Means. |
| 2016-04-29 | House | Introduced in House |
Same As/Similar To
HB415 (Related) 2015-01-20 - Referred to the House Committee on Ways and Means.
SB198 (Related) 2015-01-20 - Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S286)
SB198 (Related) 2015-01-20 - Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S286)
Subjects
Administrative law and regulatory procedures
Corporate finance and management
Department of the Treasury
Foreign and international corporations
Income tax rates
Securities
Taxation
Taxation of foreign income
Corporate finance and management
Department of the Treasury
Foreign and international corporations
Income tax rates
Securities
Taxation
Taxation of foreign income
US Congress State Sources
| Type | Source |
|---|---|
| Summary | https://www.congress.gov/bill/114th-congress/house-bill/5125/all-info |
| Text | https://www.congress.gov/114/bills/hr5125/BILLS-114hr5125ih.pdf |
