Ceinwen Rees and Serene Ho (Kirkland & Ellis) explain why boilerplate clauses exist and why it’s important to check that they are included in the contract.
In almost every contract there will be (or should be) a clause that says something like ‘payments shall be made free of withholding tax except as required by law.’ The need for this clause might not be immediately obvious: after all if withholding is required by law then of course the payer is going to withhold. However there is more to it than that: the clause is not just about giving permission to withhold it is about economic risk allocation. In a scenario where...
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Ceinwen Rees and Serene Ho (Kirkland & Ellis) explain why boilerplate clauses exist and why it’s important to check that they are included in the contract.
In almost every contract there will be (or should be) a clause that says something like ‘payments shall be made free of withholding tax except as required by law.’ The need for this clause might not be immediately obvious: after all if withholding is required by law then of course the payer is going to withhold. However there is more to it than that: the clause is not just about giving permission to withhold it is about economic risk allocation. In a scenario where...
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:
