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Enron Mail |
Dave
I have had the following responses on the issues we discussed earlier: I spoke with David Minns re the 'Eligible Persons' criteria, and he noted that while he had discussed the capital/asset holding criteria with Tana, he had not provided to anyone the other criteria, and that while these may be covered by the US criteria, there will need to be a review of all criteria before we can assess that all are covered. I spoke with Chris Catt at Price Waterhouse Coopers and he confirmed that provided there is no interest component in the cross border settlements made, there will be no with-holding tax issues re the payments/receipts. I am going to meet with Chris on Monday to discuss both the taxation implications and to review the GTC. On the settlement issue, in the short term the best way to do the settlements for non-NEMMCO members would be via wires from Houston (this is how we settled our one previous cross border transaction) as this gives a third party review of the payments prior to release. Regards Heidi David Forster@ECT 17/03/2000 11:10 To: Debbie R Brackett/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, David Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Heidi Mason/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mark Taylor/HOU/ECT@ECT, Paul Smith/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Mark Dilworth/LON/ECT@ECT, Arfan Aziz/LON/ECT@ECT Subject: Australian Status As I understand it, the current situation with regard to international companies being able to transact on Australian power is this: The only remaining potential issue is witholding tax. This may or may not be an issue and is being researched by Heidi Mason. If it is an issue, it is possible that we can borrow some language from the U.S. financial GTC. Heidi will coordinate with David Minns and suggest a solution (if required) for incorporation into the Australian GTC. An issue was raised with regard to "Eligible Persons", and the requirement that an "Eligible Person" hold more than $AUS 10 million. However, Tana Jones has been in discussion with David Minns on this issue and determined that the U.S. requirements are in fact more stringent than the Australian ones, hence the application of U.S. criteria for Financial trades should be more than sufficient to meet the Australian "Eligible Persons" requirements. Furthermore, a perusal of the approvals by credit indicate that no companies with an E-rating of less than 4 have been approved by credit. An issue was also raised with regard to settlements and the use of Austra-Clear. However, as we are unlikely to have large numbers of foreign companies transacting on Australian power in the near term, this should be a problem which can be resolved in the back office if it arises and should not impact the GTC, the planned Monday launch or the customer profiles. At this point, I am anticipating (possibly) having a witholding tax revision to the GTC, which will be uploaded to the system on Friday (Houston time). If anyone has any questions or concerns, please contact me on 713 853 1861 (office) or 713 562 8678 (cell). Thanks, Dave
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