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(d) dues and taxes on private income, including
capital gains, having its source in the receiving State
and capital taxes relating to investments made in
commercial or financial undertakings in the receiving
State;
Petitioner’s lottery payment in 1996 was private income having
its source in the United States. Thus, that payment is not
exempt from tax under either article 34 or article 49.
Petitioner contends that the 1996 NYSL payment is tax exempt
under article 32 of the Vienna Convention on Consular Relations
(article 32), 21 U.S.T. at 98. Article 32 states:
Exemption From Taxation of Consular Premises
1. Consular premises and the residence of the career
head of consular post of which the sending State or any
person acting on its behalf is the owner or lessee
shall be exempt from all national, regional or
municipal dues and taxes whatsoever, other than such as
represent payment for specific services rendered.
2. The exemption from taxation referred to in
paragraph 1 of this Article shall not apply to such
dues and taxes if, under the law of the receiving
State, they are payable by the person who contracted
with the sending State or with the person acting on its
behalf.
We disagree. Article 32 applies only to taxes imposed on
consular premises and on the residence of the career head of the
consular post. Thus, the $1,238,100 that petitioner received
from the NYSL in 1996 is not excluded from income by the Vienna
Conventions.
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