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

Template:Nutshell 2002 ISDA 2(d)(ii) (view source)

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-:{{isdaprov|2(d)(ii)}} '''Liability'''. If:―
+:{{isdaprov|2(d)(ii)}} '''Liability'''. If the payer :—
-::(1) X is required to deduct or withhold a {{isdaprov|Tax}} payment that it would not have to [[gross up]] to Y under Section {{isdaprov|2(d)(i)(4)}};
+::(1) is required by law to withhold a ''non''-{{isdaprov|Indemnifiable Tax}};
-::(2) X does not deduct or withhold that payment; and
+::(2) nonetheless does not do so; and
-::(3) X directly incurs a liability for the {{isdaprov|Tax}},
+::(3) suffers by direct assessment a liability for that {{isdaprov|Tax}},
-:then, unless Y satisfies that {{isdaprov|Tax}} liability itself, Y must promptly pay the amount in question to X (including liability for interest and (if Y has not complied with Sections {{isdaprov|4(a)(i)}}, {{isdaprov|4(a)(iii)}} or {{isdaprov|4(d)}}) penalties. <br>
+:then, unless the recipient has satisfied the {{isdaprov|Tax}} liability directly, it must reimburse the payer for that liability (plus interest, but not penalties unless it failed to provide tax information required under Section {{isdaprov|4(a)}}, or breached any {{isdaprov|Payee Tax Representations}}. <br>