Template:Nutshell 2002 ISDA 2(d)(i): Difference between revisions

:{{isdaprov|2(d)(i)}} '''{{isdaprov|Gross-Up}}'''. The parties must pay without withholding unless required by law. Where a payer has to withhold, it must:—

::(1) promptly tell the recipient;

::(2) promptly pay the withheld amount to the relevant authorities (including the withholding on any required {{isdaprov|gross-up}});

::(3) give the recipient a receipt for the tax payment; and

::(4) gross up any {{isdaprov|Indemnifiable Tax}}, so that the recipient receives the amount it would otherwise have received (free of {{isdaprov|Indemnifiable Taxes}}).  

:However, the payer need not gross up any withholding that arose only because:—

:::(A) the recipient did not provide Section {{isdaprov|4(a)}} tax information, or breached its {{isdaprov|Payee Tax Representations}}; or

:::(B) the recipient's {{isdaprov|Payee Tax Representations}} were untrue other than because of (I) any regulatory action taken after execution of the {{isdaprov|Transaction}} or (II) a {{isdaprov|Change in Tax Law}}. <br>