Deduction or Withholding for Tax - ISDA Provision: Difference between revisions

Deduction or Withholding for Tax - ISDA Provision (view source)

Revision as of 09:39, 15 September 2014

17 bytes removed , 15 September 2014

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 But here: let *me* have a go.
+{{Box|
-{{isdaprov|2(d)(i)}} Gross-Up. All payments will be made deduction for {{isdaprov|Tax}} unless deduction is required by applicable law. Where a party (X) is obliged to deduct for {{isdaprov|Tax}} it will promptly: <br>
+{{isdaprov|2(d)(i)}} '''{{isdaprov|Gross-Up}}'''. All payments will be made without deduction for {{isdaprov|Tax}} unless deduction is required by applicable law. Where one party (X) has to deduct for {{isdaprov|Tax}} it will promptly: <br>
 :(1) notify the other party (Y); <br>
-:(2) pay the full amount of {{isdaprov|Tax}} required (including on any grossed up amount required under this Section);
+:(2) pay the full amount of {{isdaprov|Tax}} required (including on any amount grossed up hereunder);
-:(3) forward evidencing such payment to Y; and <br>
+:(3) provide evidence of such payment to Y; and <br>
-:(4) where the {{isdaprov|Tax}} is an {{isdaprov|Indemnifiable Tax}}, pay to Y such additional amount as is necessary to ensure that the net amount received by Y (free of {{isdaprov|Indemnifiable Taxes}}) will equal the full amount Y would have received had there been no such deduction ("'''gross up'''"). <br>
+:(4) where the {{isdaprov|Tax}} is an {{isdaprov|Indemnifiable Tax}}, pay to Y an additional amount so that the net amount Y receives (free of {{isdaprov|Indemnifiable Taxes}}) equals the full amount Y would have received had there been no such deduction ("'''gross up'''"). <br>
-However, X will '''not''' be required to gross up any tax which would not be required but for:―<br>
+X will '''not''' be required to gross any {{isdaprov|Tax}} which would not be required but for:―<br>
 :(A) Y's failure to comply with Section {{isdaprov|4(a)(i)}}, {{isdaprov|4(a)(iii)}} or {{isdaprov|4(d)}}; or
 :(B) Y's breach of any Section {{isdaprov|3(f)}} representation (unless such breach would not have occurred but for (I) any governmental action ''after'' entry into a Transaction or (II) a {{isdaprov|Change in Tax Law}}.
 {{isdaanatomy}}
+}}