Eloise Walker of the Tax Department of Pinsent Masons LLP takes a look at some common pitfalls in the provisions governing group payment arrangements for private company acquisitions
In most private company disposals located somewhere at the back of the tax deed will be a clause labelled 'Group Payment Arrangement(s)' (GPA). But just because it looks like boilerplate does not mean it is not important. Get it wrong and you'll be wishing you'd negotiated it as hotly as the scope of the main indemnity and its exclusions. This article will look at why you need a GPA clause some of the problems that can arise with the drafting and how to make sure your clause really does do the job.
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Eloise Walker of the Tax Department of Pinsent Masons LLP takes a look at some common pitfalls in the provisions governing group payment arrangements for private company acquisitions
In most private company disposals located somewhere at the back of the tax deed will be a clause labelled 'Group Payment Arrangement(s)' (GPA). But just because it looks like boilerplate does not mean it is not important. Get it wrong and you'll be wishing you'd negotiated it as hotly as the scope of the main indemnity and its exclusions. This article will look at why you need a GPA clause some of the problems that can arise with the drafting and how to make sure your clause really does do the job.
What...
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:
