Archive for February 10th, 2011

Case study: Thin cap – matters equivalent to a guarantee

February 10, 2011  |  Thin Capitalisation  |  No Comments

A sculpture from the Sapporo snow festival. Hokkaido, Japan's northernmost island of which Sapporo is the capital, remains home to a high concentration of wild bears.

The following case study considers whether or not a transaction that does not have the legal form of a guarantee may still be treated as, in substance, being a guarantee from a Foreign Controlling Shareholder for the purposes of the Japanese thin capitalisation regulations.

This section should be read in conjunction with the articles on the Japanese thin capitalisation regulations which can be found here.

Capitalised terms below are as defined in the thin capitalisation section.

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