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2. Notwithstanding paragraph 1, the taxes
existing on March 17, 1995 to which the
Convention shall apply are:
* * * * * * *
(b) In the case of the United States, the
Federal income taxes imposed by the Internal
Revenue Code of 1986. * * *
Thus, the Third Protocol makes specific reference to the
Internal Revenue Code of 1986, the Code as renamed by TRA.
TRA sec. 2(a), 100 Stat. 2095.
The Fourth Protocol was signed on July 29, 1997, and
entered into force on December 16, 1997. The Fourth
Protocol made no modifications to article XXIV of the U.S.-
Canada treaty. There is no mention in the Third or the
Fourth Protocol of the enactment of section 59 by TRA, or
the enactment of section 1012(aa)(2) of TAMRA.
Petitioners contend that a conflict exists between
section 59(a)(2) and article XXIV of the U.S.-Canada
treaty, and that article XXIV of the U.S.-Canada treaty,
which is the later expression of the sovereign will of the
United States by reason of the entry into force of the
Third and Fourth Protocols, precludes the application of
section 59(a)(2) to them. Petitioners contend that, as a
result, their alternative minimum tax foreign tax credit
cannot be reduced by the limitation set forth in section
59(a)(2).
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