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whether the years in issue are "pre-1987 open years." Instead,
petitioner argues that sections 1275 and 1277 of TRA 1986 create
a retroactive tax in violation of the United States Constitution.
Additionally, petitioner contends that section 1277(c)(2)
violates the Due Process and Equal Protection Clauses of the
Fifth Amendment to the Constitution because it specifically
exempts from the application of section 1275(b) two corporations
similarly situated to petitioner.3
Condor Intl., Inc. v. Commissioner, 98 T.C. at 215, involved
3 The relevant portions of sec. 1277(c)(2) provide:
(D) Exception.-–In the case of any pre-1987 open
year, the amendment made by section 1275(b) shall not
apply to any domestic corporation if–-
(i) during the fiscal year which ended
May 31, 1986, such corporation was actively
engaged directly or through a subsidiary in
the conduct of a trade or business in the
Virgin Islands and such trade or business
consists of business related to marine
activities, and
(ii) such corporation was incorporated
on March 31, 1983, in Delaware.
(E) Exception for certain transactions.--
(i) In general.-–In the case of any pre-1987
open year, the amendment made by section 1275(b)
shall not apply to any income derived from
transactions described in clause (ii) by 1 or more
corporations which were formed in Delaware on or
about March 6, 1981, and which have owned 1 or
more office buildings in St. Thomas, United States
Virgin Islands, for at least 5 years before the
date of the enactment * * *
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