Terms and conditions of exemption
4.  Where the payment made under an interest rate or currency swap transaction by a financial institution is to a related party, the exemption under paragraph 3 shall apply only if the transaction is carried out at arm’s length and the following documents are furnished with the return of income made by the financial institution under section 62 of the Act:
(a)in relation to any such swap transaction entered into during the basis period relating to the year of assessment for which the return is made, a certificate issued by an external auditor certifying that the swap transaction between the financial institution and the related party is carried out at arm’s length; and
(b)in respect of each related party to whom interest rate and currency swap payments were made during the basis period relating to the year of assessment for which the return is made, a statement stating —
(i)the name, place of incorporation and country of residence for tax purpose of the related party;
(ii)the total amount of swap payments made to the related party during that basis period; and
(iii)the total amount of swap payments received from the related party during that basis period.