DAC TAX ELECTION STATEMENT Clause Samples
DAC TAX ELECTION STATEMENT. 1. The Ceding Company and Continental hereby agree to the following pursuant to Section 1.848-2(g)(8) of the Income Tax Regulation issued December 1992, under Section 848 of the Internal Revenue Code of 1986, as amended. This election will be effective June 1, 1999 and all subsequent taxable years for which this agreement remains in effect.
2. The term "party" will refer to either the Ceding Company or Continental as appropriate.
3. The terms used in this article are defined by reference to Regulation 1.848-2 in effect December 1992.
4. The party with net positive consideration for this agreement for each taxable year will capitalize specified IRS contract acquisition expenses with respect to this agreement without regard to the general deductions limitation of Section 848(c)(1).
5. Both parties agree to exchange information pertaining to the amount of net consideration under this agreement each year to ensure consistency or as otherwise required by the Internal Revenue Service.
6. Continental will submit a schedule to the Ceding Company by February 1 of each year of its calculation of the net consideration for the preceding calendar year. This schedule will be accompanied by a statement stating that Continental will report such net consideration in its tax return for the preceding calendar year.
7. The Ceding Company may contest such calculation by providing an alternative calculation to Continental within 30 days of the Ceding Company's receipt of Continental's calculation. If the Ceding Company does not so notify Continental, Continental will report the net consideration as determined by Continental in Continental's tax return for the previous calendar year.
8. If the Ceding Company contests Continental's calculation of the net consideration, the parties will act in good faith to reach an agreement as to the correct amount within 30 days of the date the Ceding Company submits its alternative calculation. If the Ceding Company and Continental reach agreement on an amount of the net consideration, each party will report such amount in their respective tax returns for the previous calendar year.
DAC TAX ELECTION STATEMENT. 1. The Ceding Company and Reinsurer hereby agree to the following pursuant to Section 1.848-2(g)(8) of the Income Tax Regulation issued December 1992, under Section 848 of the Internal Revenue Code of 1986, as amended. This election will be effective for 1992 and all subsequent taxable years for which this agreement remains in effect.
2. The term "party" will refer to either the Ceding Company or Reinsurer as appropriate.
3. The terms used in this article are defined by reference to Regulation 1.848-2 in effect December 1992.
4. The party with net positive consideration for this agreement for each taxable year will capitalize specified IRS policy acquisition expenses with respect to this agreement without regard to the general deductions limitation of Section 848(c)(1).
5. Both parties agree to exchange information pertaining to the amount of net consideration under this agreement each year to ensure consistency or as otherwise required by the Internal Revenue Service.
6. Reinsurer will submit a schedule to the Ceding Company by [Month day] of each year of its calculation of the net consideration for the preceding calendar year. This schedule will be accompanied by a statement stating that Reinsurer will report such net consideration in its tax return for the preceding calendar year.
7. The Ceding Company may contest such calculation by providing an alternative calculation to Reinsurer within [number (#)] days of the Ceding Company's receipt of Reinsurer's calculation. If the Ceding Company does not so notify Reinsurer, Reinsurer will report the net consideration as determined by Reinsurer in Reinsurer's tax return for the previous calendar year.
8. If the Ceding Company contests Reinsurer's calculation of the net consideration, the parties will act in good faith to reach an agreement as to the correct amount within [number (#)] days of the date the Ceding Company submits its alternative calculation. If the Ceding Company and Reinsurer reach agreement on an amount of the net consideration, each party will report such amount in their respective tax returns for the previous calendar year.
DAC TAX ELECTION STATEMENT. The Ceding Company and ___________ hereby agree to the following pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations issued December 29,1992, under Section 848 of the Internal Revenue Code of 1986, as amended. This election shall be effective for 1991 taxable year for all amounts of consideration arising after November 14, 1991 and for all subsequent taxable years for which this agreement remains in effect.
1) The term "party" will refer to either the Ceding Company or ___________ as appropriate.
DAC TAX ELECTION STATEMENT. 4) The Ceding Company and ___________ agree to exchange information pertaining to the amount of net consideration under this Agreement each year to ensure consistency. The Ceding Company and ___________ also agree to exchange information which may be otherwise required by the IRS.
5) The Ceding Company will submit a schedule to ___________ by June 1 of each year of its calculation of the net consideration for the preceding calendar year. This schedule of calculations will be accompanied by a statement signed by an officer of the Ceding Company stating that the Ceding Company will report such net consideration in its tax return for the preceding calendar year.
6) may contest such calculation by providing an alternative calculation to the Ceding Company in writing within 30 days of ___________'s receipt of the Ceding Company's calculation. If ___________ does not so notify the Ceding Company, ___________ will report the net consideration as determined by the Ceding Company in ___________'s tax return for the previous calendar year.
7) If ___________ contests the Ceding Company's Calculation of the net consideration, the parties will act in good faith to reach an agreement as to the correct amount within thirty (30) days of the date ___________ submits its alternative calculation. If the Ceding Company and ___________ reach agreement on an amount of the net consideration, each party shall report such amount in their respective tax returns for the previous calendar year.