TAX ISSUES IN SECURITIZATION

abhishreshthaa

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TAX ISSUES IN SECURITIZATION


The basic objective of an ideal tax regime for securitization should be based on the nature of the securitization vehicle.

If the vehicle is merely a passive conduit between the investors and the originator, the conduit should be taxed neutral or tax transparent.


If the conduit amounts to an active framework for re-configuration of the cash flows transferred by the originator, such that the conduit amounts to a virtual satellite company, the conduit should be taxed on entity taxation principles
 
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