Riggs National Corporation & Subsidiaries - Page 31




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              Resolution 1033.  Yet, the Central Bank continued to                    
              issue its letters and schedules (printouts) to the agent                
              banks reporting its receipt of the pecuniary benefit                    
              (subsidy) through at least March 5, 1987, over a year and               
              eight months after the pecuniary benefit (subsidy) was                  
              reduced to zero. * * * Exhibit 692-ZN(23) [the Nov. 19,                 
              1985, letter from Mr. Oliveira to Morgan Bank discussed                 
              in our findings] clearly shows the Central Bank issuing                 
              an erroneous printout to the agent bank on November 19,                 
              1985, reporting the “receipt” of a pecuniary benefit that               
              should never have been paid.  * * *  Petitioner continued               
              to report its Brazilian tax receipts net of a 40% subsidy               
              through at least January, 1987, relying upon erroneous                  
              letters and underlying Central Bank printouts. * * * By                 
              continuing to generate DARFs that reported pecuniary                    
              benefit over a year and one half after its elimination,                 
              the Central Bank has provided evidence showing that its                 
              representations were, at best, inaccurate.                              
         Respondent notes that in addition to Mr. Oliveira’s letter of                
         November 19, 1985, there were two Morgan Bank letters, respectively          
         dated January 21, 1986, and August 1986, each of which was discussed         
         supra.                                                                       
              In its reply brief on remand, petitioner denies that a                  
         substantial inconsistency exists in the evidence it offered to               
         substantiate the Central Bank’s actual payment of the withholding            
         tax in issue.  Specifically, petitioner denies that the Central Bank         
         reported to the foreign lenders that it had continued to “receive”           
         a “pecuniary benefit” in connection with its post-June 28, 1985,             
         restructuring debt remittances and asserts:                                  
                   Respondent identifies several letters which he                     
              claims reflect receipt of the pecuniary benefit by the                  
              Central Bank after June 28, 1985, when the pecuniary                    
              benefit was reduced to zero. * * * An examination of the                
              documents * * * shows the claimed inaccuracies do not                   
              exist. * * *                                                            






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