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(2) Certain Amendments To Apply Notwithstanding
Treaties.-–The following amendments made by the Reform
Act [viz Tax Reform Act of 1986] shall apply notwith-
standing any treaty obligation of the United States in
effect on the date of the enactment of the Reform Act:
(A) The amendments made by section 1201 of
the Reform Act.
(B) The amendments made by title VII of the
Reform Act to the extent such amendments relate to
the alternative minimum tax foreign tax credit.
Thus, Congress specifically codified the later-in-time rule with
respect to section 59(a)(2). Id. at 319.
The Third Protocol, signed on March 17, 1995, and entered
into force on November 9, 1995, made changes to article XXIV
affecting credits for Social Security tax, corporate tax
exemptions, and the tax treatment of dividends, interest, and
royalties. Third Protocol, Art. 12. These amendments did not
alter the general rule of article XXIV found in paragraph 1, as
stated above. Id.; U.S.-Canada treaty, art. XXIV, par. 1.
Significantly, the Third Protocol amended paragraph 2 of Article
II of the treaty, setting forth the taxes covered by the treaty.
That paragraph was amended to read as follows:
2. Notwithstanding paragraph 1, the taxes existing on
March 17, 1995 to which the Convention shall apply are:
* * * * * * *
(b) In the case of the United States, the Federal
income taxes imposed by the Internal Revenue Code
of 1986.
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