- 39 -                                         
          Q.  The Brazilian IRS's March 1984 Private Ruling to the Central            
          Bank                                                                        
               On or about December 28, 1982, the head of FIRCE submitted a           
          "consulta" or ruling request by the Central Bank to the Brazilian           
          IRS.  The December 28, 1982, consulta stated, in pertinent part:            
               Subject:  Withholding tax levied on interest on                        
               *  *  *  [proposed phase I DFA and phase I CGA].                       
               Mr. Secretary,                                                         
               In the next few days, the Central Bank of Brazil will                  
               enter into, with the international financial community,                
               *  *  *  [the proposed phase I DFA and phase I CGA].                   
          *       *       *       *       *       *       *                           
               2.   In contracting these  *  *  *  [agreements], the                  
               Central Bank  *  *  *  will act in the capacity of Agent               
               of the Federal Government in implementing the foreign                  
               exchange policy determined by the National Monetary                    
               Council.                                                               
               3.   Therefore, all the financing charges resulting from               
               the above agreements will be for the account of the                    
               National Treasury, which will be responsible for the                   
               respective services related to payments and remittances.               
               4.   During the negotiations for such Agreements, the                  
               Brazilian Authorities assumed the commitment to provide                
               the creditors with withholding receipts (DARF's) for the               
               withholding tax paid on the interest payable by the                    
               Central Bank on the funds of  *  *  *  [the phase I DFA                
               and phase I CGA], during the period in which such funds                
               remain deposited at the Central Bank and available for                 
               relending to borrowers in Brazil.                                      
               5.   In view of the special characteristics of these                   
               transactions, we hereby request your opinion on the                    
               matter, pointing out that the following has already been               
               negotiated with the creditor bankers:                                  
                    (a) issuance of the DARF's in the names of                        
                    the agent bank of  *  *   *  [the proposed                        
                    phase I DFA and phase I CGA], considering that                    
Page:  Previous   29   30   31   32   33   34   35   36   37   38   39   40   41   42   43   44   45   46   47   48   NextLast modified: May 25, 2011