- 154 -
tion.112 Accordingly, we sustain respondent's determinations that
(1) for the period that commenced on November 12, 1985, the date
on which BB Loan No. 3 was funded, and ended on September 12,
1986, the date on which that loan was repaid, Radcliffe was
required to withhold tax on the full amount of the interest that
it, in form, paid to Bangkok Bank LA branch on BB Loan No. 3 and
(2) petitioner, as transferee of Radcliffe, is liable for that
withholding tax liability of Radcliffe.
4. UB $570,000 Pre-March 1984 Loan and
UB $570,000 Renewed Loan Transactions
The record establishes that, in form, Union Bank funded a
$570,000 loan to BOT and Union Bank's affiliate Standard Char-
tered Bank HK held a deposit in the name of Merit that secured
that loan. With respect to the UB $570,000 renewed loan transac-
tion, the record establishes that, in form, Union Bank renewed
its $570,000 loan to BOT and Union Bank's affiliate Standard
Chartered Bank, Singapore, held a deposit in the name of Forward
that secured that loan. The record also shows that, in form,
Union Bank received interest from BOT with respect to the UB
$570,000 pre-March 1984 and renewed loan transactions and, al-
though the record is silent on this point, its affiliate Standard
Chartered Bank HK presumably paid interest to Merit on its
$570,000 deposit and its affiliate Standard Chartered Bank,
112 See first paragraph supra note 108 for our views on peti-
tioner's alternative argument about portfolio interest.
Page: Previous 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 NextLast modified: May 25, 2011