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the Central Bank/Final borrowers of the relent funds, I
believe that, as regards the funds that must be released
to those as yet unidentified borrowers in Brazil, * *
* [the Central Bank] must as a substitute for such
borrowers pay the income tax incident on the interest
from January 1, 1984 to the end of the period of
availability for such funds to be relent.
(10) On account of the foregoing, there are the following
consequences to the transactions in question:
(a) payment of withholding tax is due and the
calculation base should be adjusted * * * [i.e.,
grossed-up];
(b) as there are innumerable lenders and income is
received through an agent bank which will then distribute
it, the DARF may be issued in the name of the agent to
simplify the payment;
(c) if there is a Convention to avoid double income
taxation signed with countries in which beneficiaries are
domiciled, the rates established in the conventions shall
be applied to that portion of the income corresponding to
each;
(d) once the tax has been made, the pecuniary benefit
* * * is applicable * * * ;
(e) in completing the DARF, the code to be used is code
0393 and, as no certificate of registration is issued in
these transactions, "Brazilian Financing Plan" may be
indicated in the appropriate space, as the reference to
the certificate is merely a control requirement.
(11) As regards the delay in paying the tax not withheld,
if the taxable event occurs while the inquiry is pending,
the tax must be paid with monetary correction and without
penalties * * * .
(12) As the term for payment of the tax is suspended, as
far as the taxable events occurring while the inquiry is
pending are concerned, as a consequence, the pecuniary
benefit will be applicable in relation to the tax paid by
the thirtieth day from the date of knowledge of the
decision.
(13) As far as the extension of the tax payment period is
concerned, this matter falls under the authority of the
Minister of Finance * * * .
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