WSC: IRS TAX PROPOSAL DOESN?T APPLY TO LINER SHIPPING

WSC: IRS TAX PROPOSAL DOESNÆT APPLY TO LINER SHIPPING    A U.S. Internal Revenue Service proposal to redefine taxable income for certain shipping activities in international waters does not apply to liner shipping, according to the Washington, D.C.-based World Shipping Council.
   The WSC said its legal counsel came to this conclusion after reviewing the IRS proposal.
   The IRS proposal excludes activities that give rise to transportation income, thereby leaving out income earned from transporting cargo or passengers, the WSC said.
   However, the proposed rule, which will be the subject of a public hearing in Washington March 28, could affect vessels engaged in services in international waters such as research vessels, the leasing of drilling rigs, drilling or mining activities, and laying cables, the WSC said.