Fair International Tax Act

[AI summary unavailable — showing source text] Fair International Tax Act - States that if a foreign corporation is a controlled foreign corporation for an uninterrupted period of thirty days and more during any taxable year, every United States shareholder of such corporation who owns stock in such corporation on the last day in such year on which such corporation is a controlled foreign corporation shall include in its gross income, for its taxable year in which or with which such taxable year of the corporation ends, its pro rata share of the corporation's earnings and profits for such year. Provides that the earnings and profits of any foreign corporation, and the deficit in earnings and profits of any foreign corporation, for any taxable year: (1) shall be determined according to rules substantially similar to those applicable to domestic corporations; (2) shall be appropriately adjusted for deficits in earnings and profits of such corporation for any priortaxable year beginning after December 31, 1973; (3) shall not include any item of income which is effectively connected with the conduct by such corporation of a trade or business within the United States unless such item is exempt from taxation (or is subject to a reduc…