Template:Withholding under ISDA: Difference between revisions
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Amwelladmin (talk | contribs) Created page with "The combination of the Payer Tax Representations and the Gross-Up clause of the ISDA has the following effect: *'''Section {{isdaprov|3(e)}}''': I promise you that I do not ha..." |
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The combination of the Payer Tax Representations and the Gross-Up clause of the | The combination of the {{isdaprov|Payer Tax Representations}} and the {{isdaprov|Gross-Up}} clause of the {{isdama}} has the following effect: | ||
*'''Section {{isdaprov|3(e)}}''': I promise you that I do not have to withhold on my payments to you (as long as all your {{isdaprov|Payee Tax Representations}} are correct and you have | *'''Section {{isdaprov|3(e)}}''': I promise you that I do not have to withhold on my payments to you (as long as all your {{isdaprov|Payee Tax Representations}} are correct and you have, under Section {{isdaprov|4(a)}}, given me everything I need to pay free of withholding); | ||
*'''Section {{isdaprov|2(d)}}''': I will not withhold on any payments to you. Unless I am required to by law. Which I kind of told you I wasn't... If I have to withhold, I'll pay the tax the authorities and give you the receipt. If I only had to withhold because of | *'''Section {{isdaprov|2(d)}}''': I will not withhold on any payments to you. Unless I am required to by law. Which I kind of told you I wasn't... If I have to withhold, I'll pay the tax the authorities and give you the receipt. If I only had to withhold because of my connection to the taxing jurisdiction (that is, if the withholding is an {{isdaprov|Indemnifiable Tax}}), I'll gross you up. (You should look at the drafting of {{gmslaprov|Indemnifiable Tax}}, by the way. It's quite a marvel). | ||
Revision as of 10:41, 12 April 2016
The combination of the Payer Tax Representations and the Gross-Up clause of the ISDA Master Agreement has the following effect:
- Section 3(e): I promise you that I do not have to withhold on my payments to you (as long as all your Payee Tax Representations are correct and you have, under Section 4(a), given me everything I need to pay free of withholding);
- Section 2(d): I will not withhold on any payments to you. Unless I am required to by law. Which I kind of told you I wasn't... If I have to withhold, I'll pay the tax the authorities and give you the receipt. If I only had to withhold because of my connection to the taxing jurisdiction (that is, if the withholding is an Indemnifiable Tax), I'll gross you up. (You should look at the drafting of Indemnifiable Tax, by the way. It's quite a marvel).