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tax rate remained at 25 percent throughout the years relevant to
this case.
F. Mechanics and Amount of the Subsidy/Pecuniary Benefit
On the same day that the 25-percent tax on interest was
reinstated (i.e., August 5, 1975), the Central Bank issued
Resolution 335, which provided that borrowers taking out foreign
loans duly registered with the Central Bank would receive a
pecuniary benefit equal to 85 percent of the tax paid on interest,
commissions, and expenses due on such loans.
Also on August 5, 1975, the Central Bank issued Circular 266,
which provided in part:
a. a DARF would be issued for the payment of the 25-percent
income tax on interest resulting from foreign currency loans;
b. on the date of payment, the banking establishment
receiving the payment would, by means of a credit to the borrower’s
account, pay the borrower the equivalent of 85 percent of the income
tax; and
c. the banking establishment receiving the tax payment would
debit its own account entitled “Pecuniary Benefit-D.L. 1,411,” and
would charge the total value of the pecuniary benefit against the
Central Bank.
On July 26, 1979, the pecuniary benefit was reduced to 50
percent of the tax; on December 7, 1979, the pecuniary benefit was
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