OPINION
Raum Judge:
The Commissioner determined income tax deficiencies against petitioners, citizens of the United States, for the years 1972 and 1973, in the amounts of $236 and $155, respectively. Petitioners are husband and wife, but the income of only the husband is here involved; he will be referred to hereinafter as the petitioner. During 1972 and 1973, he was a bona fide resident of France, employed there by “IBM-Europe.” In the determination of the deficiencies, the Commissioner made certain uncontested adjustments in the total compensation received by petitioner in each year. Furthermore, the Commissioner recomputed the foreign tax credit with respect to the income taxes paid to France for each year. The recomputations thus made are not in dispute, except to the extent that the foreign tax credit is, in effect, reduced by reason of the Commissioner’s treatment of a portion of petitioner’s compensation as U.S. source income. The case was submitted to us for decision solely on the basis of a stipulation of facts.
During each of the years in issue, petitioner spent 5 days in the United States on business, and the parties have stipulated that he thus had U.S. source compensation for his services in the amounts of $1,108 and $1,157 for the years 1972 and 1973, respectively. There is no dispute that petitioner paid income taxes to France on the total amount of compensation received by him in those years, including the portions allocable to his services in the United States. Also, petitioners do not appear to contest the correctness, under our internal revenue laws, of the Commissioner’s recomputation of the foregin tax credit.1
The sole issue raised in the pleadings is that petitioner is being subjected to double taxation on the portions of his income allocated to U.S. sources in violation of the Income Tax Treaty between the United States and France, and in particular article 25 thereof. United States-France Convention with respect to taxes on income and property, July 28, 1967, 19 U.S.T. 5280, 1968-2 C.B. 691 (as amended by the United States-France Income Tax Protocol, Oct. 12, 1970, 23 U.S.T. 20, 1972-1 C.B. 438)2 hereinafter sometimes referred to as the convention or 1967 convention. We hold, (1) that article 25, which establishes a certain procedural device for dealing with rights agreed upon in the convention, does not afford petitioner a remedy which can be asserted in this Court; and (2) that the substantive provisions of the convention, properly construed, do not affect the operation of our Internal Revenue Code in the circumstances of this case, and instead call for the application of the French income tax law in such manner as to avoid double taxation.
1. Article 25. — Article 25, which is entitled “Mutual Agreement Procedure,” is set forth below.3 It provides for an international administrative procedure in which the “competent authority” of one country confers with the “competent authority” of the other with a view to resolving difficulties in the application of the convention. The two competent authorities may reach an agreement in respect of the imposition of taxes in a specific case that can supersede the application of the national law of either country. The procedure is entirely administrative, not judicial, and paragraph (1) of article 25 contemplates that the taxpayer may invoke it by “presenting] his case to the competent authority of the Contracting State of which he is a resident.” In this case, petitioner is a resident of France; accordingly, if he were to proceed under article 25, it is incumbent upon him to present the matter to the competent authority of France.4 Certainly, this Court is not empowered to initiate any competent authority proceedings or to represent the United States in any negotiations with the competent authority of France.
If petitioner wishes to proceed under article 25, he must invoke competent authority proceedings in an appropriate manner,5 not by attempting to present his case on the merits to this Court. We have jurisdiction only to decide whether the deficiency determined by the Commissioner is correct under the laws of the United States, as such laws may be affected by substantive provisions of the convention. And, as we have already pointed out, there is no dispute as to the correctness of the deficiency under our Internal Revenue Code. There remains only the question of whether any substantive provisions of the convention require a different result.
2. The substantive provisions of the convention. — The materials before us appear to indicate that petitioner initially sought a reduction in his French taxes to obtain relief from double taxation, but the French authorities denied such relief, relying upon article 15 of the convention. Article 15, which is set forth below to the extent pertinent,6 would indeed support that conclusion if it stood alone. Although paragraph (1) of that article does empower the United States generally to tax the compensation of a French resident for services performed in the United States, paragraph 2(a) effectively takes that power away here since petitioner was not present in the United States for a period exceeding 183 days in each of the years 1972 and 1973.7 However, article 15 does not stand alone, and its effect is completely eliminated here by the savings clause in paragraph (4)(a) of article 22,8 since petitioner is a United States citizen.
Although many foreign countries tax their residents on their worldwide income, the United States taxes its citizens, as well as its residents, on their worldwide income. See R. Patrick, “United States Negotiating Objectives and Model Treaties,” 5 N.Y.U. Inst. Tax & Bus. Planning 1, 9 (1978). Accordingly, the United States insists on the inclusion of a “savings clause” in its tax treaties; the effect of this clause is to reserve the right of the United States to tax its citizens and residents on the basis of the provisions of the Internal Revenue Code without regard to the provisions of the treaty. See J. Bischel, “Basic Income Tax Treaty Structures,” Income Tax Treaties 9-11 (J. Bischel ed. 1978); E. Owens, supra n. 1, at 530-535; Rev. Rul. 59-56, 1959-1 C.B. 737, 738. Paragraph 4(a) of article 22 is just such a savings clause, which preserves the right of the United States to tax its own citizens in accordance with its own laws. See S. Exec. Rept. 5, 90th Cong., 2d Sess. 38 (1968), 1968-2 C.B. 881, 896. Cf. Perkins v. Commissioner, 40 T.C. 330, 339-340 (1963); Crerar v. Commissioner, 26 T.C. 702, 705-706 (1956). Since the savings clause does not include article 15 among the articles which take precedence over the savings clause, the savings clause has the effect of providing that the source of income allocation rules found in the Internal Revenue Code are applicable to U.S. citizens, rather than the provisions of article 15. These code provisions and the related regulations clearly indicate that petitioner’s compensation for services performed in the United States is U.S. source income. See sec. 861(a)(3), I.R.C. 1954; sec. 1.861-4(b), Income Tax Regs. Accordingly, article 15 of the convention does not exempt such compensation from tax by the United States.
It is true that the savings clause does not affect the convention rules on relief from double taxation, found in article 23.
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OPINION
Raum Judge:
The Commissioner determined income tax deficiencies against petitioners, citizens of the United States, for the years 1972 and 1973, in the amounts of $236 and $155, respectively. Petitioners are husband and wife, but the income of only the husband is here involved; he will be referred to hereinafter as the petitioner. During 1972 and 1973, he was a bona fide resident of France, employed there by “IBM-Europe.” In the determination of the deficiencies, the Commissioner made certain uncontested adjustments in the total compensation received by petitioner in each year. Furthermore, the Commissioner recomputed the foreign tax credit with respect to the income taxes paid to France for each year. The recomputations thus made are not in dispute, except to the extent that the foreign tax credit is, in effect, reduced by reason of the Commissioner’s treatment of a portion of petitioner’s compensation as U.S. source income. The case was submitted to us for decision solely on the basis of a stipulation of facts.
During each of the years in issue, petitioner spent 5 days in the United States on business, and the parties have stipulated that he thus had U.S. source compensation for his services in the amounts of $1,108 and $1,157 for the years 1972 and 1973, respectively. There is no dispute that petitioner paid income taxes to France on the total amount of compensation received by him in those years, including the portions allocable to his services in the United States. Also, petitioners do not appear to contest the correctness, under our internal revenue laws, of the Commissioner’s recomputation of the foregin tax credit.1
The sole issue raised in the pleadings is that petitioner is being subjected to double taxation on the portions of his income allocated to U.S. sources in violation of the Income Tax Treaty between the United States and France, and in particular article 25 thereof. United States-France Convention with respect to taxes on income and property, July 28, 1967, 19 U.S.T. 5280, 1968-2 C.B. 691 (as amended by the United States-France Income Tax Protocol, Oct. 12, 1970, 23 U.S.T. 20, 1972-1 C.B. 438)2 hereinafter sometimes referred to as the convention or 1967 convention. We hold, (1) that article 25, which establishes a certain procedural device for dealing with rights agreed upon in the convention, does not afford petitioner a remedy which can be asserted in this Court; and (2) that the substantive provisions of the convention, properly construed, do not affect the operation of our Internal Revenue Code in the circumstances of this case, and instead call for the application of the French income tax law in such manner as to avoid double taxation.
1. Article 25. — Article 25, which is entitled “Mutual Agreement Procedure,” is set forth below.3 It provides for an international administrative procedure in which the “competent authority” of one country confers with the “competent authority” of the other with a view to resolving difficulties in the application of the convention. The two competent authorities may reach an agreement in respect of the imposition of taxes in a specific case that can supersede the application of the national law of either country. The procedure is entirely administrative, not judicial, and paragraph (1) of article 25 contemplates that the taxpayer may invoke it by “presenting] his case to the competent authority of the Contracting State of which he is a resident.” In this case, petitioner is a resident of France; accordingly, if he were to proceed under article 25, it is incumbent upon him to present the matter to the competent authority of France.4 Certainly, this Court is not empowered to initiate any competent authority proceedings or to represent the United States in any negotiations with the competent authority of France.
If petitioner wishes to proceed under article 25, he must invoke competent authority proceedings in an appropriate manner,5 not by attempting to present his case on the merits to this Court. We have jurisdiction only to decide whether the deficiency determined by the Commissioner is correct under the laws of the United States, as such laws may be affected by substantive provisions of the convention. And, as we have already pointed out, there is no dispute as to the correctness of the deficiency under our Internal Revenue Code. There remains only the question of whether any substantive provisions of the convention require a different result.
2. The substantive provisions of the convention. — The materials before us appear to indicate that petitioner initially sought a reduction in his French taxes to obtain relief from double taxation, but the French authorities denied such relief, relying upon article 15 of the convention. Article 15, which is set forth below to the extent pertinent,6 would indeed support that conclusion if it stood alone. Although paragraph (1) of that article does empower the United States generally to tax the compensation of a French resident for services performed in the United States, paragraph 2(a) effectively takes that power away here since petitioner was not present in the United States for a period exceeding 183 days in each of the years 1972 and 1973.7 However, article 15 does not stand alone, and its effect is completely eliminated here by the savings clause in paragraph (4)(a) of article 22,8 since petitioner is a United States citizen.
Although many foreign countries tax their residents on their worldwide income, the United States taxes its citizens, as well as its residents, on their worldwide income. See R. Patrick, “United States Negotiating Objectives and Model Treaties,” 5 N.Y.U. Inst. Tax & Bus. Planning 1, 9 (1978). Accordingly, the United States insists on the inclusion of a “savings clause” in its tax treaties; the effect of this clause is to reserve the right of the United States to tax its citizens and residents on the basis of the provisions of the Internal Revenue Code without regard to the provisions of the treaty. See J. Bischel, “Basic Income Tax Treaty Structures,” Income Tax Treaties 9-11 (J. Bischel ed. 1978); E. Owens, supra n. 1, at 530-535; Rev. Rul. 59-56, 1959-1 C.B. 737, 738. Paragraph 4(a) of article 22 is just such a savings clause, which preserves the right of the United States to tax its own citizens in accordance with its own laws. See S. Exec. Rept. 5, 90th Cong., 2d Sess. 38 (1968), 1968-2 C.B. 881, 896. Cf. Perkins v. Commissioner, 40 T.C. 330, 339-340 (1963); Crerar v. Commissioner, 26 T.C. 702, 705-706 (1956). Since the savings clause does not include article 15 among the articles which take precedence over the savings clause, the savings clause has the effect of providing that the source of income allocation rules found in the Internal Revenue Code are applicable to U.S. citizens, rather than the provisions of article 15. These code provisions and the related regulations clearly indicate that petitioner’s compensation for services performed in the United States is U.S. source income. See sec. 861(a)(3), I.R.C. 1954; sec. 1.861-4(b), Income Tax Regs. Accordingly, article 15 of the convention does not exempt such compensation from tax by the United States.
It is true that the savings clause does not affect the convention rules on relief from double taxation, found in article 23.9 However, a fair reading of this provision indicates that petitioner is entitled to a tax credit from France, and not the United States, in respect of compensation for services performed in the United States. Under article 23, the United States is required to provide a tax credit only for the “appropriate amount” of French taxes paid; and this “amount” is strictly limited so as not to be in excess of the U.S. tax on French source income. The report of the Senate Committee on Foreign Relations recommending that the Senate give its advice and consent to ratification of the treaty explains that although specific reference in the treaty was not made to the foreign tax credit provisions in the Code, in order that subsequent statutory modifications would not alter the effect of the convention, a per-country limitation on the amount of the credit was to be applied under the convention. S. Exec. Rept. 5, supra at 39, 1968-2 C.B. at 896-897. It is reasonable to infer that since the convention contemplated the use of a per-country limitation (as was then provided in section 904(a)(1) of the Code), it was also assumed that the related Code sections determining the source of income (including section 861(a)(3)) would also be applicable,10 as those source of income provisions are necessary for application of a per-country limitation on the credit. Moreover, the convention itself provides that terms not otherwise defined are to be applied by the United States in accordance with United States law;11 this provision would appear to require use of U.S. source of income rules, at least where the treaty fails to adequately define the source of income, as is the case here.12 Thus, it seems clear that in article 23 of the convention, the United States consented only to provide a foreign tax credit on income attributable to sources in France, as determined under the source of income rules of the Internal Revenue Code, and not to income from United States sources. At the same time, France, in article 23(2)(b), consented to provide a tax credit against French taxes for U.S. income taxes on income from sources within the United States.
It would thus appear that under the convention, relief from double taxation is available here only as a credit against the French tax. To be sure, we are aware that petitioner has already sought such relief and it was denied by the French authorities in reliance upon article 15. But we think they erred in this respect, as more fully explained above. Perhaps petitioner may seek reconsideration by the French authorities in the application of their own law as modified by the convention. And as a last resort, he may be able to present his case to the French competent authority, thereby initiating the international administrative procedure established by article 25, in respect of which this Court has no jurisdiction. However, we express no opinion as to such courses of action.
Decision will be entered for the respondent.