Page 112 - Compendium of Law & Regulations

CVD Rules, 1995

be added. If however, the grant is allocated over a longer period than the
investigation period, the interest may be added as described in section C
(a)(ii).Any lump sum of revenue transferred or foregone (e.g. income tax
or duty exemption, rebates, money saved from preferential provision of
goods and services or gained from excessive prices for the purchase of
goods) should be considered as being equivalent to a grant.

(i) Direct transfer of funds

The amount of subsidy should be the amount received by the company
concerned (a subsidy to cover operating losses would fall into this
category).

(ii) Tax exemptions

The amount of subsidy should be the amount of tax that would have
been payable by the recipient company at the standard applicable tax rate
during the investigation period.

(iii) Tax reductions

The amount of subsidy should be the difference between the amount of
tax actually paid by the recipient company during the investigation period
and the amount that would have been paid at the normal rate of tax. (The

same method should be applied to all other exemptions and reduction of
obligation, e.g. import duties, social security contributions, redundancy
payments)

(iv) Accelerated depreciation

Accelerated depreciation of assets under a government agreed programme

should be considered as a tax reduction. The amount of subsidy should
be the difference between the amount of tax that would have been paid
during the investigation period under the normal depreciation schedule

102