Section 995.—Taxation — Internal Revenue Bulletin 2003-45

2003 base period T-bill rate. The “base period T-bill rate” for the period ending September 30, 2003, is published as required by section 995(f) of the Code.

Rev. Rul. 2003–111

Section 995(f)(1) of the Internal Revenue Code provides that a shareholder of a DISC shall pay interest each taxable year in an amount equal to the product of the shareholder’s DISC-related deferred tax liability for the year and the “base period T-bill rate.” Under section 995(f)(4), the base period T-bill rate is the annual rate of interest determined by the Secretary to be equivalent to the average of the 1-year constant maturity Treasury yields, as published by the Board of Governors of the Federal Reserve System, for the 1-year period ending on September 30 of the calendar year ending with (or of the most recent calendar year ending before) the close of the taxable year of the shareholder. The base period T-bill rate for the period ending September 30, 2003, is 1.30 percent.

Pursuant to section 6222 of the Code, interest must be compounded daily. The table below provides factors for compounding the base period T-bill rate daily for any number of days in the shareholder’s taxable year (including a 52–53 week accounting period) for the 2003 base period T-bill rate. To compute the amount of the interest charge for the shareholder’s taxable year, multiply the amount of the shareholder’s DISC-related deferred tax liability (as defined in section 995(f)(2)) for that year by the base period T-bill rate factor corresponding to the number of days in the shareholder’s taxable year for which the interest charge is being computed. Generally, one would use the factor for 365 days. One would use a different factor only if the shareholder’s taxable year for which the interest charge being determined is a short taxable year, if the shareholder uses the 52–53 week taxable year, or if the shareholder’s taxable year is a leap year.

For the base period T-bill rates for the periods ending in prior years, see Rev. Rul. 2002–68, 2002–2 C.B. 808, Rev. Rul. 2001–56, 2001–2 C.B. 500, and Rev. Rul. 2000–52, 2000–2 C.B. 516.

2003-45 I.R.B. 1009 November 10, 2003

DRAFTING INFORMATION

The principal author of this revenue ruling is David Bergkuist of the Office of the Associate Chief Counsel (International). For further information about this revenue ruling, contact Mr. Bergkuist at (202) 622–3850 (not a toll-free call).

2003 ANNUAL RATE, COMPOUNDED DAILY

41 .001461315 42 .001496983 43 .001532653 44 .001568324 45 .001603996

46 .001639670 47 .001675345 48 .001711021 49 .001746698 50 .001782377

51 .001818057 52 .001853738 53 .001889420 54 .001925104 55 .001960789

56 .001996475 57 .002032163 58 .002067852 59 .002103542 60 .002139233

61 .002174926 62 .002210620 63 .002246315 64 .002282011 65 .002317709

66 .002353408 67 .002389108 68 .002424810 69 .002460513 70 .002496217

71 .002531922 72 .002567629 73 .002603337 74 .002639046 75 .002674756

76 .002710468 77 .002746181 78 .002781895 79 .002817611 80 .002853327

81 .002889045 82 .002924765 83 .002960485 84 .002996207 85 .003031930

2003 ANNUAL RATE, COMPOUNDED DAILY

1.30 PERCENT FACTOR

DAYS

1.30 PERCENT FACTOR

DAYS

86 .003067655 87 .003103381 88 .003139107 89 .003174836 90 .003210565

91 .003246296 92 .003282028 93 .003317761 94 .003353496 95 .003389232

96 .003424969 97 .003460707 98 .003496447 99 .003532188 100 .003567930

101 .003603674 102 .003639419 103 .003675165 104 .003710912 105 .003746661

106 .003782411 107 .003818162 108 .003853914 109 .003889668 110 .003925423

111 .003961179 112 .003996937 113 .004032695 114 .004068455 115 .004104217

116 .004139979 117 .004175743 118 .004211508 119 .004247275 120 .004283043

121 .004318812 122 .004354582 123 .004390353 124 .004426126 125 .004461900

126 .004497676 127 .004533452 128 .004569230 129 .004605009 130 .004640790

DAYS

1.30 PERCENT FACTOR

1 .000035616 2 .000071234 3 .000106853 4 .000142473 5 .000178095

6 .000213718 7 .000249342 8 .000284967 9 .000320594 10 .000356221

11 .000391851 12 .000427481 13 .000463113 14 .000498746 15 .000534380

16 .000570015 17 .000605652 18 .000641290 19 .000676929 20 .000712570

21 .000748212 22 .000783855 23 .000819499 24 .000855145 25 .000890792

26 .000926440 27 .000962089 28 .000997740 29 .001033392 30 .001069045

31 .001104700 32 .001140355 33 .001176012 34 .001211671 35 .001247330

36 .001282991 37 .001318653 38 .001354317 39 .001389981 40 .001425647

November 10, 2003 1010 2003-45 I.R.B.

2003 ANNUAL RATE, COMPOUNDED DAILY

DAYS

1.30 PERCENT FACTOR

131 .004676572 132 .004712355 133 .004748139 134 .004783924 135 .004819711

136 .004855499 137 .004891289 138 .004927079 139 .004962871 140 .004998664

141 .005034459 142 .005070255 143 .005106052 144 .005141850 145 .005177650

146 .005213450 147 .005249253 148 .005285056 149 .005320861 150 .005356667

151 .005392474 152 .005428282 153 .005464092 154 .005499903 155 .005535715

156 .005571529 157 .005607344 158 .005643160 159 .005678977 160 .005714796

161 .005750616 162 .005786437 163 .005822260 164 .005858084 165 .005893909

166 .005929735 167 .005965563 168 .006001392 169 .006037222 170 .006073053

171 .006108886 172 .006144720 173 .006180555 174 .006216392 175 .006252230

176 .006288069 177 .006323909 178 .006359751 179 .006395594 180 .006431438

181 .006467284 182 .006503130 183 .006538979 184 .006574828 185 .006610678

186 .006646530 187 .006682384 188 .006718238 189 .006754094 190 .006789951

191 .006825809 192 .006861668 193 .006897529 194 .006933391 195 .006969255

196 .007005119 197 .007040985 198 .007076853 199 .007112721 200 .007148591

201 .007184462 202 .007220334 203 .007256208 204 .007292083 205 .007327959

206 .007363836 207 .007399715 208 .007435595 209 .007471476 210 .007507359

211 .007543243 212 .007579128 213 .007615014 214 .007650902 215 .007686791

216 .007722681 217 .007758572 218 .007794465 219 .007830359 220 .007866255

221 .007902151 222 .007938049 223 .007973948 224 .008009849 225 .008045750

226 .008081653 227 .008117558 228 .008153463 229 .008189370 230 .008225278

231 .008261188 232 .008297098 233 .008333010 234 .008368923 235 .008404838

236 .008440754 237 .008476671 238 .008512589 239 .008548509 240 .008584430

241 .008620352 242 .008656275 243 .008692200 244 .008728126 245 .008764053

246 .008799982 247 .008835912 248 .008871843 249 .008907775 250 .008943709

251 .008979644 252 .009015580 253 .009051518 254 .009087457 255 .009123397

256 .009159338 257 .009195281 258 .009231225 259 .009267170 260 .009303117

261 .009339064 262 .009375013 263 .009410964 264 .009446915 265 .009482868

2003-45 I.R.B. 1011 November 10, 2003

2003 ANNUAL RATE, COMPOUNDED DAILY

DAYS

1.30 PERCENT FACTOR

266 .009518822 267 .009554778 268 .009590735 269 .009626693 270 .009662652

271 .009698613 272 .009734574 273 .009770538 274 .009806502 275 .009842468

276 .009878435 277 .009914403 278 .009950373 279 .009986343 280 .010022315

281 .010058289 282 .010094264 283 .010130240 284 .010166217 285 .010202195

286 .010238175 287 .010274156 288 .010310139 289 .010346122 290 .010382107

291 .010418093 292 .010454081 293 .010490070 294 .010526060 295 .010562051

296 .010598044 297 .010634038 298 .010670033 299 .010706029 300 .010742027

301 .010778026 302 .010814026 303 .010850028 304 .010886031 305 .010922035

306 .010958040 307 .010994047 308 .011030055 309 .011066064 310 .011102075

311 .011138087 312 .011174100 313 .011210114 314 .011246130 315 .011282147

316 .011318165 317 .011354185 318 .011390206 319 .011426228 320 .011462251

321 .011498276 322 .011534302 323 .011570329 324 .011606358 325 .011642387

326 .011678419 327 .011714451 328 .011750485 329 .011786520 330 .011822556

331 .011858593 332 .011894632 333 .011930672 334 .011966714 335 .012002756

336 .012038800 337 .012074845 338 .012110892 339 .012146940 340 .012182989

341 .012219039 342 .012255091 343 .012291144 344 .012327198 345 .012363253

346 .012399310 347 .012435368 348 .012471427 349 .012507488 350 .012543550

351 .012579613 352 .012615678 353 .012651743 354 .012687811 355 .012723879

356 .012759948 357 .012796019 358 .012832092 359 .012868165 360 .012904240

361 .012940316 362 .012976393 363 .013012472 364 .013048552 365 .013084633

366 .013120715 367 .013156799 368 .013192884 369 .013228970 370 .013265058

371 .013301147