- 17 -
therein. TAMRA sec. 1012 (aa)(4), 102 Stat. 3532.
Thus, the Third Protocol specifically takes into
account, as the taxes to which the convention
shall apply, the alternative minimum tax as
amended by the Tax Reform Act of 1986, including
the limitation on the alternative minimum tax
foreign tax credit imposed by section 59(a)(2).
Accordingly, we find that there is harmony
between provisions of the U.S.-Canada treaty and
section 59. Pekar v. Commissioner, supra at 163;
Brooke v. Commissioner, T.C. Memo. 2000-194
[affd. 13 Fed. Appx. 7 (D.C. Cir. 2001)].
For the reasons set forth in our opinion in Kappus
v. Commissioner, supra, we reject petitioners' position
that there is conflict between the provisions of the U.S.-
Canada treaty and section 59, and we find that petitioners
are subject to section 59(a)(2).
On the basis of the foregoing,
Decision will be entered
for respondent.
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