Common use of Corporation’s rights, if treated as representative assessee by Government Authorities Clause in Contracts

Corporation’s rights, if treated as representative assessee by Government Authorities. In certain situations, a Government Authority may treat the Corporation as the representative assessee of the Contractor and/or its subcontractors and recover the Taxes due to the Government Authority by the Contractor or its subcontractors from the Corporation. In such situations, the Corporation shall have the following rights: (a) The Corporation shall be entitled to recover from the Contractor, the Taxes paid on behalf of the Contractor or its subcontractors (together with any costs and expenses incurred by the Corporation in connection therewith) or to retain the same out of any amounts to be paid to the Contractor or its subcontractors that may be in its possession (whether due under this Contract or otherwise) and shall pay only the balance, if any, to the Contractor; and (b) If the Corporation is required to furnish any details or documents in such capacity, the Corporation shall request the details or documents to be furnished to it by the Contractor and the Contractor shall immediately furnish the same to the Corporation. If the Contractor fails to comply with the foregoing, any penalty/interest levied on the Corporation for non-filing or late filing of details or documents in this regard shall be recoverable from the Contractor.