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section 59(a)(2) conflicts with the provisions of article XXIV
of the U.S.-Canada treaty, entitled "Elimination of Double
Taxation". Petitioners reject respondent's contention that
section 59(a)(2) can be harmonized with the treaty because the
treaty expressly makes the double taxation provisions subject to
"the limitations of the law of the United States (as it may be
amended from time to time without changing the general principle
hereof)". U.S.-Canada treaty, Article XXIV, paragraph 1.
According to petitioners, the operation of paragraphs 4, 5, and
6, of article XXIV, especially paragraph 4 which specifically
deals with United States citizens who reside in Canada, is not
subject to change by the amendment of U.S. law. Furthermore,
petitioners argue, even if the quoted language of paragraph 1 of
article XXIV applies to paragraphs 4, 5, and 6 of article XXIV,
section 59(a)(2) is not an amendment of U.S. law that fits within
the parenthetical because it causes double tax and, thus, would
not be in keeping with the general principle of the elimination
of double taxation.
Petitioners' argument misses the mark. Petitioners urge us
to find a conflict between section 59(a)(2) and Article XXIV of
the treaty based upon the Third and Fourth Protocols, but they
fail to address the effect of the enactment of section
1012(aa)(2) of TAMRA. As discussed above in section 1012(aa)(2)
of TAMRA, Congress provided that section 701 of the Tax Reform
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