Tax
Oct. 3, 2016
Tax Indemnity Clauses in Settlement Agreements
Making another party provide indemnity sounds like a great idea, but it can get complicated.
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
A tax indemnity provision in a legal document generally states that one party will cover certain taxes, or will be responsible to protect the other party should tax problems arise. Such provisions are common: they appear in many variations, and show up across a wide variety of contracts and agreements.
The Settlement Context
One recurring context where we see tax indemnity clauses is in settlement agreements that resolve legal disputes. The scenario is si...
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