A bill to amend the Internal Revenue Code of 1954 with respect to the treatment of gains in certain exchanges involving foreign corporations.

[AI summary unavailable — showing source text] States that in determining the extent to which gain shall be recognized, under the Internal Revenue Code, in the case of exchanges among corporations, a foreign corporation shall not be considered a corporation, unless such an exchange is done to avoid income taxes. Provides that such stipulation shall apply where there is an exchange incident to a complete liquidation of a foreign corporation into a second foreign corporation which is wholly owned by a United States corporation where both foreign corporations are incorporated under the laws of the same foreign country.…