Commentary

D9.1007 Creditor repos and creditor quasi-repos

Corporate tax
Corporate tax | Commentary

D9.1007 Creditor repos and creditor quasi-repos

Corporate tax | Commentary

D9.1007 Creditor repos and creditor quasi-repos

A lender company (or firm of which the lender is a member) has a 'creditor repo' if all five conditions below are met1:

  1.  

    •     Under an arrangement another person (the borrower) receives from the lender (or firm) any money or other asset ('the advance') (Condition A).

  2.  

    •     The accounts of the lender (or firm) for the period in which the advance is made record a financial asset in respect of the advance in accordance with GAAP (Condition B).

  3.  

    •     Under the arrangement, the borrower sells any securities to the lender (or firm) at any time (Condition

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