- 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 ........ 190
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011