text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Corporate Tax Dodging Prevention 
  Act''.
  
  SEC. 2. DEFERRAL OF ACTIVE INCOME OF CONTROLLED FOREIGN CORPORATIONS.
  
      Section 952 of the Internal Revenue Code of 1986 is amended by 
  adding at the end the following new subsection:
      ``(d) Special Application of Subpart.--
              ``(1) In general.--For taxable years beginning after 
          December 31, 2013, notwithstanding any other provision of this 
          subpart, the term `subpart F income' means, in the case of any 
          controlled foreign corporation, the income of such corporation 
          derived from any foreign country.
              ``(2) Applicable rules.--Rules similar to the rules under 
          the last sentence of subsection (a) and subsection (d) shall 
          apply to this subsection.''.
  
  SEC. 3. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO LARGE 
                INTEGRATED OIL COMPANIES WHICH ARE DUAL CAPACITY 
                TAXPAYERS.
  
      (a) In General.--Section 901 of the Internal Revenue Code of 1986 
  is amended by redesignating subsection (n) as subsection (o) and by 
  inserting after subsection (m) the following new subsection:
      ``(n) Special Rules Relating to Large Integrated Oil Companies 
  Which Are Dual Capacity Taxpayers.--
              ``(1) General rule.--Notwithstanding any other provision of 
          this chapter, any amount paid or accrued by a dual capacity 
          taxpayer which is a large integrated oil company to a foreign 
          country or possession of the United States for any period shall 
          not be considered a tax--
                      ``(A) if, for such period, the foreign country or 
                  possession does not impose a generally applicable 
                  income tax, or
                      ``(B) to the extent such amount exceeds the amount 
                  (determined in accordance with regulations) which--
                              ``(i) is paid by such dual capacity 
                          taxpayer pursuant to the generally applicable 
                          income tax imposed by the country or 
                          possession, or
                              ``(ii) would be paid if the generally 
                          applicable income tax imposed by the country or 
                          possession were applicable to such dual 
                          capacity taxpayer.
                  Nothing in this paragraph shall be construed to imply 
                  the proper treatment of any such amount not in excess 
                  of the amount determined under subparagraph (B).
              ``(2) Dual capacity taxpayer.--For purposes of this 
          subsection, the term `dual capacity taxpayer' means, with 
          respect to any foreign country or possession of the United 
          States, a person who--
                      ``(A) is subject to a levy of such country or 
                  possession, and
                      ``(B) receives (or will receive) directly or 
                  indirectly a specific economic benefit (as determined 
                  in accordance with regulations) from such country or 
                  possession.
              ``(3) Generally applicable income tax.--For purposes of 
          this subsection--
                      ``(A) In general.--The term `generally applicable 
                  income tax' means an income tax (or a series of income 
                  taxes) which is generally imposed under the laws of a 
                  foreign country or possession on income derived from 
                  the conduct of a trade or business within such country 
                  or possession.
                      ``(B) Exceptions.--Such term shall not include a 
                  tax unless it has substantial application, by its terms 
                  and in practice, to--
                              ``(i) persons who are not dual capacity 
                          taxpayers, and
                              ``(ii) persons who are citizens or 
                          residents of the foreign country or possession.
              ``(4) Large integrated oil company.--For purposes of this 
          subsection, the term `large integrated oil company' means, with 
          respect to any taxable year, an integrated oil company (as 
          defined in section 291(b)(4)) which--
                      ``(A) had gross receipts in excess of 
                  $1,000,000,000 for such taxable year, and
                      ``(B) has an average daily worldwide production of 
                  crude oil of at least 500,000 barrels for such taxable 
                  year.''.
      (b) Effective Date.--
              (1) In general.--The amendments made by this section shall 
          apply to taxes paid or accrued in taxable years beginning after 
          the date of the enactment of this Act.
              (2) Contrary treaty obligations upheld.--The amendments 
          made by this section shall not apply to the extent contrary to 
          any treaty obligation of the United States.
  
  SEC. 4. REINSTITUTION OF PER COUNTRY FOREIGN TAX CREDIT.
  
      (a) In General.--Subsection (a) of section 904 of the Internal 
  Revenue Code of 1986 is amended to read as follows:
      ``(a) Limitation.--The amount of the credit in respect of the tax 
  paid or accrued to any foreign country or possession of the United 
  States shall not exceed the same proportion of the tax against which 
  such credit is taken which the taxpayer's taxable income from sources 
  within such country or possession (but not in excess of the taxpayer's 
  entire taxable income) bears to such taxpayer's entire taxable income 
  for the same taxable year.''.
      (b) Effective Date.--The amendment made by this section shall apply 
  to taxable years beginning after December 31, 2013.
  
  SEC. 5. TREATMENT OF FOREIGN CORPORATIONS MANAGED AND CONTROLLED IN THE 
                UNITED STATES AS DOMESTIC CORPORATIONS.
  
      (a) In General.--Section 7701 of the Internal Revenue Code of 1986 
  is amended by redesignating subsection (p) as subsection (q) and by 
  inserting after subsection (o) the following new subsection:
      ``(p) Certain Corporations Managed and Controlled in the United 
  States Treated as Domestic for Income Tax.--
              ``(1) In general.--Notwithstanding subsection (a)(4), in 
          the case of a corporation described in paragraph (2) if--
                      ``(A) the corporation would not otherwise be 
                  treated as a domestic corporation for purposes of this 
                  title, but
                      ``(B) the management and control of the corporation 
                  occurs, directly or indirectly, primarily within the 
                  United States,
          then, solely for purposes of chapter 1 (and any other provision 
          of this title relating to chapter 1), the corporation shall be 
          treated as a domestic corporation.
              ``(2) Corporation described.--
                      ``(A) In general.--A corporation is described in 
                  this paragraph if--
                              ``(i) the stock of such corporation is 
                          regularly traded on an established securities 
                          market, or
                              ``(ii) the aggregate gross assets of such 
                          corporation (or any predecessor thereof), 
                          including assets under management for 
                          investors, whether held directly or indirectly, 
                          at any time during the taxable year or any 
                          preceding taxable year is $50,000,000 or more.
                      ``(B) General exception.--A corporation shall not 
                  be treated as described in this paragraph if--
                              ``(i) such corporation was treated as a 
                          corporation described in this paragraph in a 
                          preceding taxable year,
                              ``(ii) such corporation--
                                      ``(I) is not regularly traded on an 
                                  established securities market, and
                                      ``(II) has, and is reasonably 
                                  expected to continue to have, aggregate 
                                  gross assets (including assets under 
                                  management for investors, whether held 
                                  directly or indirectly) of less than 
                                  $50,000,000, and
                              ``(iii) the Secretary grants a waiver to 
                          such corporation under this subparagraph.
                      ``(C) Exception from gross assets test.--
                  Subparagraph (A)(ii) shall not apply to a corporation 
                  which is a controlled foreign corporation (as defined 
                  in section 957) and which is a member of an affiliated 
                  group (as defined section 1504, but determined without 
                  regard to section 1504(b)(3)) the common parent of 
                  which--
                              ``(i) is a domestic corporation (determined 
                          without regard to this subsection), and
                              ``(ii) has substantial assets (other than 
                          cash and cash equivalents and other than stock 
                          of foreign subsidiaries) held for use in the 
                          active conduct of a trade or business in the 
                          United States.
              ``(3) Management and control.--
                      ``(A) In general.--The Secretary shall prescribe 
                  regulations for purposes of determining cases in which 
                  the management and control of a corporation is to be 
                  treated as occurring primarily within the United 
                  States.
                      ``(B) Executive officers and senior management.--
                  Such regulations shall provide that--
                              ``(i) the management and control of a 
                          corporation shall be treated as occurring 
                          primarily within the United States if 
                          substantially all of the executive officers and 
                          senior management of the corporation who 
                          exercise day-to-day responsibility for making 
                          decisions involving strategic, financial, and 
                          operational policies of the corporation are 
                          located primarily within the United States, and
                              ``(ii) individuals who are not executive 
                          officers and senior management of the 
                          corporation (including individuals who are 
                          officers or employees of other corporations in 
                          the same chain of corporations as the 
                          corporation) shall be treated as executive 
                          officers and senior management if such 
                          individuals exercise the day-to-day 
                          responsibilities of the corporation described 
                          in clause (i).
                      ``(C) Corporations primarily holding investment 
                  assets.--Such regulations shall also provide that the 
                  management and control of a corporation shall be 
                  treated as occurring primarily within the United States 
                  if--
                              ``(i) the assets of such corporation 
                          (directly or indirectly) consist primarily of 
                          as sets being managed on behalf of investors, 
                          and
                              ``(ii) decisions about how to invest the 
                          assets are made in the United States.''.
      (b) Effective Date.--The amendments made by this section shall 
  apply to taxable years beginning on or after the date which is 2 years 
  after the date of the enactment of this Act.
target: Corporate Tax Dodging Prevention Act - Amends the Internal Revenue Code, with respect to the taxation of the foreign-source income of domestic corporations, to: (1) eliminate the deferral of tax on the foreign-source income of U.S. corporations for taxable years beginning after December 31, 2013, (2) deny the foreign tax credit to large integrated oil companies that are dual capacity taxpayers, (3) limit the offset of the foreign tax credit to income that is subject to U.S. tax, and (4) treat foreign corporations managed and controlled in the United States as domestic corporations for U.S. tax purposes. 
feat_title: Corporate Tax Dodging Prevention Act