TEFRA

Definition:

US Tax Equity and Fiscal Responsibility Act of 1982. TEFRA was broadly intended to limit tax avoidance by US Persons, including curtailing the issuance of Bearer Bonds to US persons. TEFRA impose penalties on US investors in Bearer Bonds. In addition, the rules may result in the imposition of a US excise tax on issuers (including non-US issuers) of Bearer Bonds, unless the issuances comply with the TEFRA rules.

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