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Tax Indemnification Agreement
"I need a Tax Indemnification Agreement to cover the sale of my manufacturing business to an overseas buyer, with specific protection against any historical tax liabilities arising from the past 5 years of operations in Queensland and New South Wales."
1. Parties: Identifies and defines the indemnitor (party providing tax indemnification) and indemnitee (party being indemnified)
2. Background: Explains the context and purpose of the tax indemnification, including relevant transaction details or corporate relationships
3. Definitions: Defines key terms including 'Tax', 'Tax Liability', 'Tax Authority', 'Indemnified Taxes', and other relevant terms
4. Scope of Indemnification: Clearly defines which tax liabilities are covered by the indemnification and for what time periods
5. Indemnification Obligations: Details the specific obligations of the indemnitor, including payment terms and timing
6. Claims Procedure: Outlines the process for making indemnification claims, including notice requirements and supporting documentation
7. Tax Authority Proceedings: Procedures for handling tax audits, assessments, and disputes with tax authorities
8. Payment Terms: Specifies timing, method, and currency of indemnification payments
9. Dispute Resolution: Procedures for resolving disputes between parties regarding the indemnification obligations
10. Governing Law and Jurisdiction: Specifies that Australian law governs and designates jurisdiction for disputes
1. Tax Gross-Up: Provisions ensuring that indemnification payments themselves don't create additional tax liabilities
2. Third Party Claims: Procedures for handling tax claims involving third parties
3. Security Provisions: Requirements for security or collateral to guarantee indemnification obligations
4. Insurance Requirements: Provisions requiring tax liability insurance coverage
5. Survival Period: Specific timeframes for how long the indemnification obligations survive
6. Tax Returns and Records: Obligations regarding the preparation and maintenance of tax-related documentation
7. Assignment: Rules regarding the transfer or assignment of indemnification rights and obligations
8. Foreign Tax Provisions: Special provisions for cross-border tax implications
1. Schedule A - Covered Tax Matters: Detailed list of specific tax liabilities, assessments, or periods covered by the indemnification
2. Schedule B - Calculation Methodology: Detailed methodology for calculating indemnification amounts, including any adjustments or exclusions
3. Schedule C - Claims Documentation: Templates and requirements for supporting documentation when making indemnification claims
4. Schedule D - Prior Tax Matters: List of known existing tax issues, audits, or assessments as of the agreement date
5. Appendix 1 - Notice Requirements: Detailed procedures and templates for providing notices under the agreement
6. Appendix 2 - Key Contacts: List of key personnel and their roles regarding tax matters and indemnification claims
Authors
Financial Services
Mining and Resources
Real Estate
Manufacturing
Technology
Healthcare
Retail
Energy
Infrastructure
Professional Services
Telecommunications
Transport and Logistics
Legal
Finance
Tax
Treasury
Compliance
Risk Management
Corporate Development
Mergers & Acquisitions
Company Secretariat
Internal Audit
Chief Financial Officer
Tax Director
Finance Manager
Corporate Lawyer
Tax Manager
Financial Controller
Legal Counsel
Compliance Officer
Treasury Manager
Risk Manager
M&A Director
Corporate Development Manager
Tax Accountant
General Counsel
Company Secretary
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