ISDA's Tax Committee monitors and addresses emerging issues in taxation

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US Tax Issues

UK Tax Issues

US Tax Issues

 

Withholding Tax on Derivatives Transactions
SUBJECT
STATUS - DESCRIPTION
AVAILABLE DOCUMENTS

ISDA Comment Letter on  Section 871(m) of the Internal Revenue Code of 1986

Submitted March 25, 2011

Comment Letter on Section 871(m)

U.S. withholding tax on certain “dividend equivalent payments” made with respect to equity swaps Submitted on December 21, 2009

(ISDA Letter on Extenders Bill) (ISDA Comments on section 501 of FATCA)

The imposition of U.S. withholding tax with respect to certain payments made on equity swaps
Qualified Covered Calls - November 20, 2009 (Exhibit to ISDA Letter) (ISDA Comments section 501 of FATCA)

Commodity Index Derivatives - Regulated Investment Companies

SUBJECT
STATUS - DESCRIPTION
AVAILABLE DOCUMENTS
IRS Revenue Ruling 2006-1 Submission to Eric Solomon, Acting Deputy Assistant Secretary (Regulatory Affairs), US Treasury - April 27, 2006 ISDA Submission on Rev Ruling 2006-1
IRS Revenue Ruling 2006-31 Revenue Ruling 2006-31, modifies Revenue Ruling 2006-1 to extend until September 30, 2006, the transition period provided by that ruling. It also clarifies that Revenue Ruling 2006-1 was not intended to preclude a conclusion that income from certain instruments, such as certain structured notes, that create a commodity exposure for the holder is qualifying income under section 851(b)(2). http://www.irs.gov/pub/irs-drop/rr-06-31.pdf

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Credit Default Swaps

SUBJECT
STATUS - DESCRIPTION
AVAILABLE DOCUMENTS
ISDA Withholding Taxes on Credit Default Swaps Submitted on October 24, 2002 ISDA Comment Letter on Withholding Taxes on Credit Default Swaps
Notice 2003-26: Comments on Recommendations for the 2003-2004 Guidance Priority List - ISDA requests inclusion of guidance on the tax treatment of credit default swaps Submitted May 2, 2003 Comment letter on Recommendations for the 2003-2004 Guidance Priority List
Supplemental Submission to Barbara Angus, US Treasury regarding Withholding Taxes on Credit Default Swaps Submitted November 21, 2003 and December 10, 2003 Supplemental Letter November 21, 2003, Supplemental Submission November 21, 2003 and Supplemental Submission December 10, 2003

Notional Principal Contracts
SUBJECT
STATUS - DESCRIPTION
AVAILABLE DOCUMENTS
ISDA Comment Letter on Proposed Tax Regulations Concerning Contingent Non-Periodic Payments Under Notional Principal Contracts Filed on 11/20/2001 Comment Letter on Tax
Suggested Anti-Abuse Rule for Use with the Wait-and-See Method of Accruing Contingent Payments on Notional Principal Contracts Submitted May 12, 2003 Comment letter on Suggested Anti-Abuse Rule
Letter to Department of Treasury on Taxation of Notional Principal Contracts that Provide for Contingent Payments Discussion of potential adverse impact of proposed alternative methodologies in preparation for September 30, 2003 meeting with Treasury and IRS representatives Letter Taxation of Notional Principal Contracts that Provide for Contingent Payments with previous comment letters of May 12, 2003 and November 20, 2001 attached
ISDA requests clarification of effective date statements in Treasury/IRS proposed regulations on notional principal contracts Submitted March 19, 2004 Request for Clarification of Effective Date Statements in Preamble to Proposed Regulations on Notional Principal Contracts with Contingent Nonperiodic Payments
Follow-up: ISDA requests clarification of effective date statements in Treasury/IRS proposed regulations on notional principal contracts Submitted April 27, 2004 Proposed Regulations Regarding Notional Principal Contracts with Contingent Nonperiodic Payments - Effective Date Issues
Follow-up: Comments on Proposed Regulations Relating to Notional Principal Contracts with Contingent Nonperiodic Payments Submitted October 13, 2004 Comments on Proposed Regulations Relating to Notional Principal Contracts with Contingent Nonperiodic Payments
Meeting with Treasury/IRS on Proposed Regulations Relating to Notional Principal Contracts with Contingent Nonperiodic Payments Met with Treasury/IRS representatives on February 8, 2005 Outline of Discussion on February 8, 2005

Section 475 - Book Tax Conformity
SUBJECT
STATUS - DESCRIPTION
AVAILABLE DOCUMENTS

Amicus Brief - Bank One Corporation v. IRS

October 12, 2000

Amicus Brief

ISDA Comment Letter on Proposed Tax Regulations Concerning Contingent Non-Periodic Payments Under Notional Principal Contracts

Filed on 11/20/2001

Comment Letter on Tax

Proposed Sec. 475 Book-Tax Conformity Safe Harbor

Submitted August 4, 2003

Comment letter on Proposed Sec. 475 Book-Tax Conformity Safe Harbor (Exhibit A - ISDA Primary Members)

Proposed Sec. 475 Book-Tax Conformity Safe Harbor

Submitted March 7, 2006

ISDA comment letter on Proposed Regs


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Qualified Covered Calls
SUBJECT
STATUS - DESCRIPTION
AVAILABLE DOCUMENTS
ISDA urges the Senate Finance Committee and House Ways and Means Committee to preserve current law "qualified covered call" (QCC) treatment for OTC options. Submitted May 19, 2004

Global Dealing Regulations
SUBJECT
STATUS - DESCRIPTION
AVAILABLE DOCUMENTS

ISDA's response to the OECD draft, Part III - Global Trading of Financial Instruments

Submitted June 27, 2003

Comment letter on Global Trading of Financial Instruments

IRS Proposed Regulations: "Allocation and Sourcing of Income and Deductions Among Taxpayers Engaged in Global Dealing Operations"

ISDA comment letter submitted to the IRS on July 10, 1998.

IRS Notice REG-208299-90
ISDA comment letter 7/10/98


Tax Shelter Rules
SUBJECT
STATUS - DESCRIPTION
AVAILABLE DOCUMENTS

ISDA Comment Letter on the Temporary Tax Shelter Regulations Issued on October 22, 2002

Submitted December 2, 2002

Comment Letter on Temporary Tax Shelter Regulations

Additional Comments by ISDA Relating to the Tax Shelter Regulations Issued on October 22, 2002 and Amended by Notice

Submitted February 5, 2003

Additional Comments by ISDA Relating to the Tax Shelter Regulations


ISDA Documentation
SUBJECT
STATUS - DESCRIPTION
AVAILABLE DOCUMENTS

Amendment to the English Law (Transfer) CSA and New York Law CSA regarding withholding tax on JPY held as collateral

Published - August 9, 2004

Form of Amendment to 1995 ISDA Credit Support Annex (Transfer - English Law) and; Form of Amendment to 1994 ISDA Credit Support Annex (Security Interest - New York Law)

Payee U.S. Tax Representations

Published on website 10/25/2001

Explanatory Note

Memorandum


Miscellaneous
SUBJECT
STATUS - DESCRIPTION
AVAILABLE DOCUMENTS

Testimony Of Mark Perwien at IRS Hearing on Proposed Hedging Regulations

Testified on 05/16/2001

Written Testimony

Hearing Transcript

ISDA Comment Letter on Proposed Regulations Concerning Hedging Transactions

Filed on 04/24/2001

Comment letter for Tax

New Tax and Withholding Reporting Rules for Swaps (Oct. 6, 1997: IRS in U.S.)

IRS issued regulation on October 6, 1997 effective January 1, 1999. Effectiveness has been postponed to January 1, 2001.
New Forms issued by IRS in December.
On January 19, 1999 IRS Notice 99-8 proposed changes to final withholding rules.
Sidley & Austin prepared memo on new forms and summary of 1/19/99 changes in the regulation. Distributed April 1, 1999.
Cravath prepared Practice Note on amending the Master Agreement to incorporate withholding disclaimer. Distributed April 1, 1999.

* Sidley & Austin memo of 02/04/98
* Final IRS forms to implement final withholding regulations on payments to foreign persons
* Sidley & Austin Memo (February 16, 1999) on new forms and Cravath Practice Note (March 22, 1999)


UK Tax Issues
SUBJECT
STATUS - DESCRIPTION
AVAILABLE DOCUMENTS
ISDA Letter to the Portuguese Secretary of State for Tax Affairs regarding Law 67 – A/2007 Submitted on June 24, 2008 to Carlos Lobo, Portuguese Secretary of State for Tax Affairs ISDA Letter to the Portuguese Secretary of State for Tax Affairs regarding Law 67 – A/2007 (June 24, 2008)
ISDA letter on HMRC re-write project derivatives contract legislation The letter highlights ISDA's preference for the existing format of the legislation ISDA letter on HMRC re-write project derivatives contract legislation, October 19, 2007

Guidance on UK Tax Issues Arising from the Use of the English Law Credit Support Annex

Appendix 2 of the 1998 Guidelines for Collateral Practitioners

Appendix 2

ISDA Letter to HM Customs & Excise on VAT treatment of Swap Premia

Submitted March 14, 2005

ISDA Letter to David Garlick, HM Customs & Excise, on VAT treatment of Swap Premia

ISDA letter to Inland Revenue on the latest draft of the Disregard Regulations

Submitted July 9, 2004

ISDA letter to Richard Thomas, Inland Revenue, regarding Disregard Regulations

ISDA's representations to Inland Revenue on Proposed New Approach to the Taxation of Derivatives Based on Property and Share Values

Submitted February 10, 2004

ISDA Letter new approaches property equity derivatives February 10, 2004

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   Last Updated: December 21, 2009