In the second of two articles on simplifying treasury tax compliance Roger Muray tax partner Ernst & Young LLP outlines a second election designed to simplify tax compliance for hedging transactions
In the first of these articles I explained how electing that Disregard Regulation 9A should apply could reduce the tax compliance burden for treasury operations using interest rate currency swaps. In this article I will deal with the second election which is particularly relevant to hedging exchange risk on anticipated trading transactions.
Which Companies Are Affected?
Forward sales and purchases of currencies are frequently used as hedges of exchange risk on anticipated future trading transactions. A growing minority of companies that use such hedges...
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In the second of two articles on simplifying treasury tax compliance Roger Muray tax partner Ernst & Young LLP outlines a second election designed to simplify tax compliance for hedging transactions
In the first of these articles I explained how electing that Disregard Regulation 9A should apply could reduce the tax compliance burden for treasury operations using interest rate currency swaps. In this article I will deal with the second election which is particularly relevant to hedging exchange risk on anticipated trading transactions.
Which Companies Are Affected?
Forward sales and purchases of currencies are frequently used as hedges of exchange risk on anticipated future trading transactions. A growing minority of companies that use such hedges...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
