Koramba Farmers & Graziers No. 1, Dean Phillips, Tax Matters Partner, et al. - Page 11

                                       - 11 -                                         

          entities over and beyond the 50 States constituting the United              
          States plus the District of Columbia.  We need not tarry long               
          over this first argument.  The partnerships argue, among other              
          things, that including foreign agencies is consistent with the              
          use of the term "State" in the international context.  We quote             
          from the partnerships' opening brief:                                       
                         Including foreign agencies in the                            
                    definition of "comparable State agency" is                        
                    also consistent with the general usage of the                     
                    term "State" in the international tax                             
                    context.  Although "State" naturally is often                     
                    limited to the U.S. states when used                              
                    domestically, it more typically is used                           
                    internationally to refer to national                              
                    governments.  For example, in the                                 
                    U.S./Australia income tax treaty, the term is                     
                    defined as follows:                                               
                         The term "State" means any National                          
                    State, whether or not one of the Contracting                      
                    States.                                                           
                    Convention Between the Government of the                          
                    United States of America and the Government                       
                    of Australia for the Avoidance of Double                          
                    Taxation and the Prevention of Fiscal Evasion                     
                    with Respect to Taxes on Income, Article                          
                    3(1)(h), reprinted in 1986-2 C.B. 220.                            
          Following this quotation, the partnerships simply state that,               
          based on the treaty definition, a broader reading of the term               
          "State" is more appropriate "in this context".                              
               We think it indisputable that the term "State", as it                  
          appears in section 175(c)(3)(A)(ii), denotes one of the States              
          and the District of Columbia which, taken as a whole, constitute            






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next

Last modified: May 25, 2011