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

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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>

Latest revision as of 15:29, 19 September 2019

2(d)(ii) Liability. If the payer :—
(1) is required by law to withhold a non-Indemnifiable Tax;
(2) nonetheless does not do so; and
(3) suffers by direct assessment a liability for that Tax,
then, unless the recipient has satisfied the 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 4(a), or breached any Payee Tax Representations.
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