On September 26,2014, TEI President Mark C, Silbiger submitted a letter to the Canadian Department of Finance setting forth the Institute's recommended revisions to August 29, 2014, draft legislation that will restrict back-to-back loans
made through intermediaries.
The OCC found these loans were similar to back-to-back loans
But if the Department knew Anglo was dressing up back-to-back loans
from other banks as deposits to mislead markets that is very different.
Identify S corporations with basis limitation issues as soon as possible to emphasize to shareholders the importance of structuring S corporation loans as coming directly from shareholders and to minimize last-minute recharacterization of advances from related entities as back-to-back loans
A financing arrangement would include back-to-back loans
S corporation shareholders have attempted to minimize this constraint and increase their loss limitations by creative characterizations of debt structures that often include variations of shareholder-level guarantees, indirect shareholder loans, or back-to-back loans
As a result, many lenders prefer back-to-back loans
On behalf of Tax Executives Institute (TEI), I am writing to express our comments and concerns about the Government's proposals relating to treaty shopping and certain back-to-back loans
Nevertheless, the IRS has successfully attacked back-to-back loans
in certain circumstances.
He said: "We've already heard about the extent to which this bank gave loans to its own directors, how it gave loans to other people to buy shares in the same bank and arranged back-to-back loans
with another financial institution to make its financial position look healthy at a time when it was anything but.
The Ruckriegels argued that the payments were in substance back-to-back loans
through them that had created a debtor-creditor relationship.
Excluding the non-recurring reorganization charges and the interest expense associated with the back-to-back loans
the company had received for operations in Venezuela, the company had an EBITDA-to-interest expense ratio of 3.