CFM17528a gives an example of a debtor repo where no income
arises during the term of the repo.
CFM17528b gives an example of a debtor
repo where income arises during the term of the repo and a
manufactured payment is received (a “gross-paying”
transaction).
CFM17528c gives an example of a debtor
repo where income arises during the term of the repo and no
manufactured payment is received (a “net-paying”
transaction).
CFM17528d gives examples of debtor
quasi-repos.
In each example, the repo finance charge rate is 6% per
annum. As none of the examples lasts for more than 12 months,
neither the question of deduction of tax nor of any potential
interest long stop (
CFM17524, last paragraph) arises.
