Tax Indemnification Agreement Template for Denmark

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Tax Indemnification Agreement

Document background
The Tax Indemnification Agreement is a crucial document used in corporate transactions and restructurings under Danish law, particularly in situations where parties need to allocate and manage tax risks. This agreement is commonly implemented in mergers and acquisitions, corporate reorganizations, or investment transactions where one party needs protection against potential tax liabilities arising from pre-closing periods or specific tax events. The document addresses various aspects including historical tax exposures, ongoing tax obligations, and future tax risks, while ensuring compliance with Danish tax regulations and legal requirements. It provides detailed mechanisms for claiming indemnification, handling tax authority inquiries, and resolving tax-related disputes, making it an essential tool for risk management in corporate transactions.
Suggested Sections

1. Parties: Identification of the indemnifier and indemnitee, including full legal names and registration details

2. Background: Context of the agreement, including the underlying transaction or relationship giving rise to the tax indemnification obligation

3. Definitions: Definitions of key terms including 'Tax', 'Tax Authority', 'Tax Liability', 'Indemnified Taxes', and other relevant terms

4. Scope of Indemnification: Detailed description of the tax liabilities covered by the indemnification

5. Indemnification Obligations: Core provisions detailing the indemnifier's obligations, including timing and method of payment

6. Tax Assessment and Notices: Procedures for handling tax assessments and notices from tax authorities

7. Payment Mechanics: Specific procedures for making indemnification payments, including currency and timing

8. Claims Procedure: Process for making and responding to indemnification claims

9. Dispute Resolution: Procedures for resolving disputes related to tax indemnification claims

10. Term and Survival: Duration of the agreement and which provisions survive termination

11. Governing Law and Jurisdiction: Confirmation of Danish law as governing law and jurisdiction for disputes

Optional Sections

1. Cross-Border Provisions: Additional provisions for handling international tax implications and multiple jurisdictions

2. Tax Gross-Up: Provisions ensuring that indemnification payments are made on an after-tax basis

3. Tax Returns and Documentation: Specific requirements for handling and sharing tax returns and supporting documentation

4. Third Party Claims: Procedures for handling tax claims involving third parties

5. Security Provisions: Requirements for security or collateral to secure indemnification obligations

6. Tax Insurance: Provisions relating to tax liability insurance if applicable

7. Change in Law: Provisions addressing changes in tax laws or regulations affecting the indemnification obligations

Suggested Schedules

1. Schedule 1 - Specific Indemnified Taxes: Detailed list of specific tax liabilities covered by the indemnification

2. Schedule 2 - Calculation Methodology: Methodology for calculating indemnification amounts, including any adjustments or special considerations

3. Schedule 3 - Claims Process Flowchart: Visual representation of the claims procedure and timeline

4. Schedule 4 - Contact Details: List of key contacts and their roles for tax notices and claims

5. Appendix A - Form of Tax Claim Notice: Standard template for making tax indemnification claims

6. Appendix B - Supporting Documentation Requirements: List of required documentation for various types of tax claims

Authors

Relevant legal definitions
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Relevant Industries
Relevant Teams
Relevant Roles
Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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