- 4 - d. Section 864(c)(2)(B) Business-Activities Test ........ 129 e. Section 864(c)(4)(B) Rules for Income From Sources Without the United States . 130 4. Application of the Effectively Connected Income Rules ............ 135 a. Management Fees ............. 136 b. Service Fees .............. 139 (1) U.S. Certificates of Deposit and Bank Deposits . . . . . .... 139 (2) Non-U.S. Certificates of Deposit and Term Deposits . . . . . . . .. 143 (3) Pace Investments .......... 146 c. Interest Income ............. 149 (1) Loans ............... 149 (2) MMA II ............... 157 d. Currency Exchange Transactions Income (Currency Swaps and Currency Transactions) . . ..... 161 e. Sales Commissions and Fees ....... 164 (1) Foreign Source TVA Commissions ... 165 (2) All Commissions and Fees Excepting the Foreign Source TVA Commissions . 166 C. Whether LTD and INC are Liable for Withholding Tax . . . . . . .......... 170 1. Background .................. 170 2. Withholding Tax on Interest ......... 171 a. Pre-1986 Act Years ........... 176 (1) Character and Source Rules for Interest . ........ 176 (2) Taxation of Interest ........ 179 b. Post-1986 Act Years ........... 180 (1) Character and Source Rules for Interest . . . . . . . ..... 180 (2) Taxation of Interest ........ 181 3. Withholding Tax on Dividends ......... 183 a. Character and Source Rules for Dividends . . . . . . . ....... 183 b. Taxation of Dividends .......... 183 4. Discussion of Interest ............ 185 a. Pre-1986 Act Years ........... 185 (1) Application of the Character and Source Rules for Interest ... 185 (2) Taxation of Interest ........ 188 b. Post-1986 Act Years ........... 189 (1) Application of the Character and Source Rules for Interest ... 189 (2) Taxation of Interest ........ 190Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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