Corporate deals in today’s market contain some very different features from those which would have been expected a few years ago. One development is sellers receiving only nominal consideration, or even being required to pay a buyer, in order to dispose of a subsidiary company. This can create problems for the unwary buyer in the shape of corporation tax and VAT liabilities, which can be exacerbated if the sale documentation does not include a well-drafted gross-up provision
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Corporate deals in today’s market contain some very different features from those which would have been expected a few years ago. One development is sellers receiving only nominal consideration, or even being required to pay a buyer, in order to dispose of a subsidiary company. This can create problems for the unwary buyer in the shape of corporation tax and VAT liabilities, which can be exacerbated if the sale documentation does not include a well-drafted gross-up provision
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes: