- 18 -
On its books, Banco do Brazil made entries reflecting: (1)
Transfers of Central Bank tax payments to Banco do Brazil’s Banking
Reserves Account at the Central Bank, (2) collections of Federal
Government tax receipts, and (3) deposits of Federal Government tax
revenues payable upon demand to the National Treasury.
From the record presented, we cannot determine whether or what
entries were made on the respective books of the Central Bank and
the National Treasury to reflect the Central Bank’s payment of
withholding tax on the restructuring debt remittances.
Consequently, we are unable to determine: (1) Whether the Central
Bank was reimbursed by the National Treasury for the withholding tax
payments; or (2) whether the Central Bank received the pecuniary
benefit based on the withholding tax payments. These two matters
were raised in the Central Bank’s ruling request and were discussed
in the March 1984 Brazilian IRS ruling to the Central Bank.
Beginning in 1984, the Central Bank issued DARF’s to the agent
banks of the foreign lenders to whom it transmitted loan payments
under the DFA’s and CGA’s, reflecting its withholding tax payments
on restructuring debt interest remittances during the relending
periods of the DFA’s and CGA’s. From 1984 through 1988, the Central
Bank issued a total of 324 DARF’s to these agent banks. As
explained more fully infra, these 324 DARF’s were group DARF’s.
In connection with remitting a particular DFA or CGA interest
payment to an individual foreign lender, the Central Bank did not
Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 NextLast modified: May 25, 2011