Joseph D. Specking, et al. - Page 20




                                       - 20 -                                         
          only of Guam, American Samoa, and the CNMI are eligible for the             
          exclusion provided by section 931, as amended by TRA 1986 section           
          1272(a), and only if the possession has an implementing agreement           
          in force.15                                                                 
               D.  Analysis                                                           
               Our first step in analyzing the issue involved in this case            
          is to ask “whether Congress has directly spoken to the precise              
          question at issue.”  Chevron U.S.A. Inc. v. Natural Res. Def.               
          Council, Inc., 467 U.S. 837, 842 (1984).  In determining whether            
          Congress specifically addressed the precise question at issue, we           
          do not examine the statutory provision in isolation; rather,                
          guided by common sense, we consider the provision in context,               
          with a view to its place in the overall statutory scheme.  FDA v.           
          Brown & Williamson Tobacco Corp., 529 U.S. 120, 132-133 (2000);             




               15The mirror system of taxation in effect in a qualified               
          possession the day before the effective date of TRA 1986                    
          continues to operate until the possession amends its tax laws.              
          S. Rept. 99-313, at 482-484, 490-491 (1986), 1986-3 C.B. (Vol. 3)           
          1, 482-484, 490-491.  Unlike Guam and the CNMI, before the                  
          enactment of the TRA 1986, American Samoa had the authority to              
          enact its own tax system; however, with certain modifications not           
          pertinent here, it generally adopted the U.S. Internal Revenue              
          Code as its own.  S. Rept. 99-313, at 477 (1986), 1986-3 C.B.               
          (Vol. 3) 1, 477.  Thus, had American Samoa and the United States            
          not entered into an implementing agreement, income from sources             
          within that possession would qualify for the exclusion provided             
          by old section 931.  For a description of the mirror system of              
          taxation in force in Guam and the CNMI, see Preece v.                       
          Commissioner, 95 T.C. 594 (1990); see also S. Rept. 99-313, at              
          475-476 (1986), 1986-3 C.B. (Vol. 3) 1, 475-476.                            





Page:  Previous  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  Next

Last modified: May 25, 2011