Washington (June 20, 2002) -- The Committee on Finance has passed legislation to prevent corporations from nominally moving overseas to avoid taxes.

"The average individual taxpayer can't skip out on his tax bill, said ranking member Sen. Chuck Grassley. He doesn't have the luxury of setting up a filing cabinet and a mail box overseas to escape his federal taxes. The same should be true for corporations."

The full Finance Committee on a voice vote approved Grassley's Reversing the Expatriation of Profits Offshore (REPO) Act (S. 2119), which Grassley introduced with Chairman Max Baucus in April. The legislation reins in companies that set up sham foreign headquarters, such as in Bermuda, to avoid paying millions of dollars of federal taxes.

The committee also approved bills that would rein in abusive tax shelters through mandatory disclosure regimes, and expand tax incentives for charitable giving.

-- Electronic Accountant Newswire staff

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