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purported payment of withholding tax on petitioner’s behalf. As
determined in our findings, the Central Bank reported that it was
continuing to “receive” a “pecuniary benefit” in connection with its
purported withholding tax payments on the foreign lenders’ behalf
on its post-June 28, 1985, restructuring debt interest remittances
to them, notwithstanding that the Brazilian Government had reduced
the pecuniary benefit to zero on June 28, 1985. In arguing to the
contrary, petitioner misinterprets the evidence of record. Further,
petitioner erroneously asserts that Mr. Oliveira’s letter of
November 19, 1985 (Joint Exhibit 692-ZN(23)), covers an earlier
January 1985 phase II CGA interest payment. Petitioner’s erroneous
assertion regarding that letter rests solely upon an incorrect entry
and likely typographical error in the parties’ summary exhibit,
Joint Exhibit 697-ZS.
Curiously, petitioner overlooks the seven September 1985 phase
II CGA interest payments that were remitted after the Brazilian
Government had reduced the pecuniary benefit to zero on June 28,
1985. Joint Exhibit 697-ZS correctly lists Joint Exhibit 692-ZN(23)
(Mr. Oliveira’s letter of November 19, 1985, and its attachments)
as covering those seven September 1985 interest payments. Moreover,
the Central Bank schedule pages in Exhibit 692-ZN(23)16 show that,
16 These include Central Bank schedule pages covering the
phase II CGA, tranche I, tranche II, tranche IV, tranche V,
tranche VI, and tranche VII interest payments made to petitioner
and other foreign lenders on Sept. 27, 1985.
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