"Savings clauses" in U.S. treaties prevent U.S. residents from using treaty provisions to avoid taxes on U.S. source income.

Question

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Savings clauses are included in U.S. treaties to prevent abuse of treaty provisions by U.S. residents for tax evasion purposes, and to ensure that the U.S. government can continue to collect taxes on U.S. source income. Therefore, the statement that savings clauses prevent U.S. residents from using treaty provisions to avoid taxes on U.S. source income is true.

"Savings Clauses" in U