Tax impacts of warranty clauses | KPMG | GLOBAL

Tax impacts of warranty clauses in cross-border share deals - Comparative survey 2017

Tax impacts of warranty clauses

This study compares the different tax treatments that may be applied to the amounts paid/received under warranty clauses.

Compare tax treatments that may be applied to the amounts paid/received under warranty....

During the acquisition of a private or public company, it is standard practice in many other jurisdictions, for the purchaser to seek comprehensive warranties and indemnities from the vendor.

In acquiring the shares of the target company, the purchaser will also acquire its liabilities and commitments, known or unknown, actual or contingent. 

The warranties are thus a kind of insurance provided by the vendor covering the liabilities of the target company. 

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Objective of our analysis

This study compares tax treatments applied to amounts paid/received under warranty clauses

 
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Scope and methodology

For the purpose of this study, we contacted the M&A teams of 20 KPMG member firms

 
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Country perspectives

For the purpose of this study, we contacted 20 KPMG M&A Tax teams.

 
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Contacts

A list of the M&A Tax teams that contributed to the study.

 
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