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1986 and was made effective as if it had been included therein.
TAMRA sec. 1012(aa)(4), 102 Stat. 3532. Thus, the Third Protocol
specifically takes into account, as the taxes to which the
convention shall apply, the alternative minimum tax as amended by
the Tax Reform Act of 1986, including the limitation on the
alternative minimum tax foreign tax credit imposed by section
59(a)(2). Accordingly, we find that there is harmony between
provisions of the U.S.-Canada treaty and section 59. Pekar v.
Commissioner, supra at 163; Brooke v. Commissioner, T.C. Memo.
2000-194.
In light of the above, it is unnecessary to address the
second element of petitioners' position, that the U.S.-Canada
treaty was the last expression of sovereign will. Since we find
no conflict between the U.S.-Canada treaty and section 59(a)(2),
petitioners are subject to section 59(a)(2), regardless which is
later in time.
We have considered all the other arguments made by
petitioners, and, to the extent we have not addressed them, find
them to be without merit.
To reflect the foregoing,
Decision will be entered
for respondent.
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