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Tax only ‘payable’ under SPA indemnity when court determines appeal against assessment (Minera Las Bambas v Glencore)

Tax only ‘payable’ under SPA indemnity when court determines appeal against assessment (Minera Las Bambas v Glencore)
Published on: 04 July 2018
Published by: LexisPSL
  • Tax only ‘payable’ under SPA indemnity when court determines appeal against assessment (Minera Las Bambas v Glencore)
  • What are the practical implications of this case?
  • What was the background?
  • What did the Court decide?
  • When is tax ‘payable’?
  • Indemnity due as part of conduct provisions
  • VAT credits and unrefunded VAT
  • Case details

Article summary

Tax analysis: The High Court was required to determine whether Peruvian VAT was ‘payable’ in the context of a tax indemnity contained in a share purchase agreement. It held that the VAT assessed by the Peruvian tax authorities was not ‘payable’ within the tax indemnity’s meaning and would only be ‘payable’ if and to the extent the Peruvian tax court determined that VAT was payable and such debt became ‘coercively’ enforceable in accordance with Peruvian tax law. or take a trial to read the full analysis.

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