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What happens when a provision in a tax deed depends on the outcome of a case?

Question

 
We are buying a target that potentially has a big tax liability in it. Whether or not the liability comes home to roost depends on the outcome of an ongoing case. Are standard tax deed provisions sufficient to deal with this or do I need to add in something extra?
 

Answer

 
It depends on what the state of the case is and what the credit status of the seller is.
 
The tax deed is generally there to cater for unexpected liabilities. If there is a known liability that would normally be factored into the price especially in a completion accounts deal. However where the liability is truly contingent the seller may be unwilling to accept that approach as it could lose out.
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