Tax Treatment of Stocklending/Sale and Repurchase (repo) Transactions

Stocklending and repo transactions are a common feature of well developed financial centres. These transactions involve the temporary transfer of stock or securities from one party to another with a simultaneous commitment to reverse the transaction at some point in the future. The difference between a stock loan and a repo transaction is that in a repo contract there is an agreed return date whereas in a stock loan contract there is no pre-agreed return date.(...)