| Commentary

128 Form of the indemnity

| Commentary

3: THE TAX DEED

128 Form of the indemnity

The tax deed is designed to provide the buyer with a remedy if the target company has a tax liability which was not provided for in the completion accounts or in the consideration price1. Traditionally, this protection takes the form of covenants provided by the sellers as covenantors to the buyer and backed up by an indemnity if those covenants are broken.

The modern form of indemnity usually covers all tax payable by the target company in respect of profits or gains made or accrued up until completion of the sale, but excluding

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial