INCOME TAX LAWS. 10.1 The Company and all Participants will comply with all applicable income tax laws and other tax laws (e.g. any withholding tax or similar obligations).
INCOME TAX LAWS. The Company and all optionees shall comply with all applicable income tax laws and other tax laws (eg. any withholding tax or similar obligations).
INCOME TAX LAWS. In particular, with respect to the requirement under Section 6050J of the Code to the effect that the Servicer or Subservicer shall make reports of foreclosures and abandonments of any mortgaged property for each year beginning in 2002, the Servicer or Subservicer shall file reports relating to each instance occurring during the previous calendar year in which the Servicer (a) on behalf of the Issuer, acquired an interest in any Mortgaged Property through foreclosure or other comparable conversion in full or partial satisfaction of a Mortgage Loan, or (b) knew or had reason to know that any Mortgaged Property had been abandoned. The reports from the Servicer or Subservicer shall be in form and substance sufficient to meet the reporting requirements imposed by Section 6050J and Section 6050H (reports relating to mortgage interest received) of the Code.
INCOME TAX LAWS. If Sirius Group is considered a passive foreign investment company (“PFIC”) for U.S. federal income tax purposes prior to the merger, a U.S. shareholder may be subject to adverse tax consequences as a result of the merger, including subjecting the U.S. shareholder to a greater tax liability than might otherwise apply and subjecting the U.S. shareholder to tax on amounts in advance of when tax would otherwise be imposed. A U.S. shareholder may avoid some of the adverse tax consequences of owning an equity interest in a PFIC by making a qualified electing fund election. If Sirius Group is a PFIC, an electing U.S. shareholder is likely to recognize income in a taxable year in amounts significantly greater than the distributions received from Sirius Group, if any, in such taxable year. Based on Sirius Group’s assets, income and activities, including those of its subsidiaries engaged in the active conduct of an insurance business, Sirius Group does not expect that it will be treated as a PFIC in 2020 and at the effective time of the merger; however, this conclusion is not free from doubt and the IRS could take the position that Sirius Group is a PFIC. While Sirius Group expects its insurance subsidiaries will qualify for the active insurance income exception for qualified insurance corporations in light of pending regulations and in the absence of other detailed guidance relating to the interpretations of the 2017 Tax Cuts and Jobs Act, there can be no assurance that Sirius Group’s insurance subsidiaries will meet the requirements for this exception. Moreover, PFIC classification is a factual determination made annually, and even if Sirius Group is not a PFIC in 2020, it could become a PFIC in later years. Accordingly, Sirius Group cannot assure you that it will not be treated as a PFIC for 2020, at the effective time of the merger or for any future year. Additionally, there can be no assurance that Third Point Re/SiriusPoint will not be treated as a PFIC following the merger. See “Risks Relating to Taxation — United States persons who own our shares may be subject to United States federal income taxation on our undistributed earnings and may recognize ordinary income upon disposition of shares — PFIC” in Third Point Re’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and “Material U.S. Federal Income Tax Consequences of the Merger — Tax Consequences of Holding and Disposition of Third Point Re Common not Held as Part of a Straddle — Pas...
