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Indemnifiable Tax - ISDA Provision: Difference between revisions
Indemnifiable Tax - ISDA Provision (view source)
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{{isdasnap|Indemnifiable Tax}} | {{isdasnap|Indemnifiable Tax}} | ||
====Commentary==== | ====Commentary==== | ||
Under Section {{isdaprov|2(d)}}, if a party is subject to withholding on any payment, it does not have to gross up the withholding tax. this is unless it is an {{isdaprov|Indemnifiable Tax}}: that is, the tax is imposed by dint of the party's own connection to the jurisdiction levying the tax, unless the tax could be avoided by the reciving party taking any action or making any representaiton (or such a representation turning out not to have been true). | |||
The basic rationale is that if the tax arises as a result of the underlier, there's no gross up. But if it is a function of the party, then it is grossed up. | |||
====See Also==== | ====See Also==== | ||
See in particular Section {{isdaprov|2(d)}} ({{isdaprov|Deduction or Withholding for Tax}}). | See in particular Section {{isdaprov|2(d)}} ({{isdaprov|Deduction or Withholding for Tax}}). | ||
{{isdaanatomy}} | {{isdaanatomy}} | ||