The purpose of this legislation, known as the "Close the Round-Tripping Loophole Act," is to amend the Internal Revenue Code to prevent companies from using a practice called "round-tripping" to reduce their tax liabilities on foreign income. Round-tripping occurs when a company shifts money to a foreign entity and then brings it back to the U.S. in a way that allows them to avoid higher taxes. The main objective is to ensure that companies pay their fair share of taxes on income earned abroad.