The bill, approved on June 18, will stop business setting up in jurisdictions such as Bermuda by treating them as US companies unless they can prove they have substantial activities in the low-tax country.
The Finance Committee ruled that corporate expatriation schemes are unfair on individual taxpayers as well as those companies that do not take advantage of the schemes.
Senator Chuck Grassley said Enron's collapse demonstrated the need for greater congressional oversight of corporate activities.
He added: "The average individual taxpayer can't skip out on his tax bill. He doesn't have the luxury of setting up a filing cabinet and a mailbox overseas to escape his federal taxes. The same should be true for corporations."
In the same session the Committee also approved the Tax Shelter Transparency Act, which will force companies to disclose their activities and prevent the use of abusive tax shelters aimed at tax avoidance. The Act has to be passed by the whole Senate to take effect.
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