- 9 -
to the Code by the Tax Reform Act of 1986, Pub. L. 99-514, sec.
701(a), 100 Stat. 2336, 6 years after the U.S.-U.K. treaty became
effective. Because the Code section was enacted after the
treaty, the Code section would prevail if we were to find a
conflict between the treaty and the Code, resulting in
petitioner's liability for the tax.
B. U.S.-Germany Treaty
With language similar to that used in the U.S.-U.K. treaty,
the double taxation provision of the U.S.-Germany treaty first
recognizes that the treaty is subject to the existing limitations
placed by U.S. law and then provides guidelines for the avoidance
of double taxation by the two countries. See U.S.-Germany
treaty, art. 23. Although we have interpreted the U.S.-U.K.
treaty, the U.S.-Germany treaty has not previously been
interpreted by this Court. The U.S.-Germany treaty provision
details: (1) When and how the United States will provide foreign
tax credits to its taxpayers to alleviate double taxation, (2)
when and how Germany will provide similar relief to its citizens
through the use of foreign tax credits and income exemptions, and
(3) how to apply a special set of credit and income-sourcing
rules for U.S. citizens resident in Germany receiving a certain
type of income. See U.S.-Germany treaty, art. 23(1)-(3). The
paragraphs pertinent to petitioner's circumstances are the first
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011