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Template:Nutshell 2002 ISDA 2(d): Difference between revisions
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::(3) promptly provide the recipient with an official receipt for the tax payment; and | ::(3) promptly provide the recipient with an official receipt for the tax payment; and | ||
::(4) if it is an {{isdaprov|Indemnifiable Tax}}, gross the payment up to ensure that the recipient actually receives the full amount it would otherwise have received (free of {{isdaprov|Indemnifiable Taxes}}). However, the payer will not have to gross up any withholding that would not have been needed paid but for:— | ::(4) if it is an {{isdaprov|Indemnifiable Tax}}, gross the payment up to ensure that the recipient actually receives the full amount it would otherwise have received (free of {{isdaprov|Indemnifiable Taxes}}). However, the payer will not have to gross up any withholding that would not have been needed paid but for:— | ||
:::(A) the recipient failing to provide tax information | :::(A) the recipient failing to provide tax information required under Section {{isdaprov|4(a)}}, or breaching any {{isdaprov|Payee Tax Representations}}; or | ||
:::(B) any of the recipient's Payee Tax Reps failing to be accurate other than because of (I) any regulatory action taken after a {{isdaprov|Transaction}} is entered into or (II) a {{isdaprov|Change in Tax Law}}. <br> | :::(B) any of the recipient's Payee Tax Reps failing to be accurate other than because of (I) any regulatory action taken after a {{isdaprov|Transaction}} is entered into or (II) a {{isdaprov|Change in Tax Law}}. <br> | ||
:(ii) '''Liability'''. If:— | |||
::(1) The payer is required by law to withhold a ''non''-{{isdaprov|Indemnifiable Tax}}; | |||
::(2) The payer nonetheless does not so withhold; and | |||
::(3) The payer suffers by direct assessment a liability for that Tax, | |||
:then, except where the recipient has satisfied that Tax liability the recipient will promptly reimburse the payer for that liability (plus interest, but excluding penalties unless the recipient has failed to provide tax information required under Section {{isdaprov|4(a)}}, or breaching any {{isdaprov|Payee Tax Representations}}. <br> | |||