Template:Nutshell 2002 ISDA 2(d)(i)
2(d)(i) Gross-Up. All payments must be made without withholding unless is required by law.
In that case the payer must:
- (1) promptly notify recipient;
- (2) pay the necessary amount to the tax authorities;
- (3) provide the recipient with evidence of the payment it made; and
- (4) where the withholding is an Indemnifiable Tax, gross up the withholding to the recipient.
A payer won't have to gross up where:
- (1) the recipient failed to provide necessary information to process a rebate; or
- (2) its Section 3(f) tax representations turned out to be wrong (unless that was brought about by a tax authority taking legal action or a Change in Tax Law after the Transaction was executed.