- 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 NextLast modified: May 25, 2011