Tax Withholding Liability
Definition
Tax Withholding Liability. Obligation in respect of liability for tax. This defines whether or not the party which is required to deduct some tax payment and does not do so, is then entitled to receive the funds from the other party in the event that a liability for this tax is later assessed against the first party.
Example
Example text: Liability. If:- (1) X is required by any applicable law, as modified by the practice of any relevant governmental revenue authority, to make any deduction or withholding in respect of which X would not be required to pay an additional amount to Y under Section 2(d)(i)(4); (2) X does not so deduct or withhold; and (3) a liability resulting from such Tax is assessed directly against X, then, except to the extent Y has satisfied or then satisfies the liability resulting from such Tax, Y will promptly pay to X the amount of such liability (including any related liability for interest, but including any related liability for penalties only if Y has failed to comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d)).
Disclaimer
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