International Tax Simplification and Reform Act of 1995

[AI summary unavailable — showing source text] International Tax Simplification and Reform Act of 1995 - Amends the Internal Revenue Code to redefine the degree and nature of the direct and indirect investment (share holding) of a domestic corporation in one or more foreign corporations that is required for both the domestic and the foreign corporations to receive a foreign tax credit for indirectly paying another corporation's foreign income taxes. (Sec. 3) Requires that, with specified exceptions, accrued translated foreign taxes are to be adjusted according to an average exchange rate for the period during which foreign taxes were paid. Makes a special rule for taxes not paid within two years. (Sec. 5) Defines "foreign personal holding company income" as excluding any income when: (1) it derives from sources within the country where the controlled corporation was formed; and (2) the corporation's predominate activity is banking, financing, or similar business, or the income was made on the sale or exchange of specified stock or securities derived from investments by a qualifying insurance company. Declares that the investment income of a person related to a corporation shall be subject to the "look-thru" treatment. Limits "f…