Regulatory Developments: ISDA Publication of ISDA 2012 FATCA Protocol

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ISDA published on August 15, 2012, the ISDA 2012 Protocol (the Protocol) that enables market participants to amend the tax provisions of their existing or future ISDA Master Agreements. The Protocol places the FATCA withholding tax burden on the recipient of payment, based on the rationale that the recipient is the sole party that has the ability to avoid the withholding tax by complying with the FATCA rules.

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