Fitch believes that many of the Safe Harbor Rule
requirements align the interests of the sponsor and originator with those of the certificateholders and are credit positive for the transaction as outlined below.
But add to that the disparate frameworks in the commission's statement regarding the status of index annuities that fall outside the rule--i.e., the status "continues to be determined by reference to the investment risk and marketing tests articulated in existing case law under Section 3(a)(8) and, to the extent applicable, the Commission's safe harbor rule
Similarly, for partnerships taxed under foreign law at the entity level, the safe harbor rule
allows a partner to take into account the share of the partnership's foreign tax expenditures proportionate to the partner's share of the income to which those taxes relate when computing U.S.
Conversely, a "constitutional safe harbor rule
" is a judicially created procedure that, if properly followed by the government actor, insulates the government from the argument that the constitutional clause at issue was violated.
In Field Assistance Bulletin (FAB) 2015-02, the Department of Labor (DOL) responds to a recurring comment about the safe harbor rule
regulation it issued in 2008 regarding the selection of annuity providers under defined contribution (DC) plans and the scope of fiduciary obligations with respect to annuity selection under these plans.
The safe harbor rule
is based on Section 3(a)(8) of the federal Securities Act, which provides exemption from regulation under the federal Securities Act "any insurance or endowment policy or annuity Contract or optional contract issued by a corporation subject to supervision of the appropriate insurance regulatory of any state."
The government agreed and modified the safe harbor rule
to provide that the holding period for purposes of the land safe harbor generally begins on the date the taxpayer acquires title to the land, unless the purchase price under the option agreement does not approximate the fair market value of the land.
Federal agencies have created a safe harbor rule
employers can use to decide whether they can just check the box or must provide more documentation.
Indeed, to make it fact, the SEC proposes issuing a new Safe Harbor Rule
151A (since the existing Safe Harbor Rule
151, widely interpreted as permitting index annuities to be regulated as insurance products, is contrary to the proposal's goal).
1.221-1(e)(3)(ii) provides that a reasonable period is determined on the basis of doe relevant facts and circumstances; a safe harbor rule
provides two ways in which expenses can be deemed paid within a reasonable time.
Though possible, changing position would require overturning multiple legal decisions and ignoring Safe Harbor Rule
Moreover, a special safe harbor rule
for valuing flights on the corporate aircraft for security concerns permits the employer to value any personal flights at a rate that is generally more favorable than the rate provided under the rules used by companies to value flights on noncommercial aircraft.