Tax effect of Claims Sample Clauses

Tax effect of Claims. If a party (payor) is liable to pay an amount to another party (recipient) in respect of a Claim and that payment is treated as income under the Tax Law such that the payment increases the income tax payable by the recipient, or the Head Company of any Consolidated Group of which the recipient is a member, (collectively the recipient Group) under the Tax Law, then the payment must be grossed-up by such amount as is necessary to ensure that the net amount retained by the recipient Group after deduction of Tax or payment of the increased income tax equals the amount the recipient Group would have retained had the Tax or increased income tax not been payable, after taking into account any benefits or relief relating to Tax of the kind referred to in clause 9.11 obtained or to be obtained by the Buyer Group in relation to such Claim or payment.

Tax effect of Claims. If a Party (Payor) is liable to pay an amount to another Party (Recipient) in respect of a Claim and that payment is treated as income under the Tax Law such that the payment increases the income tax payable by the Recipient, or the Head Company of any consolidated group of which the Recipient is a member (collectively the Recipient Group) under the Tax Law, then the payment must be grossed-up by such amount as is necessary to ensure that the net amount retained by the Recipient Group after deduction of Tax or payment of the increased income tax equals the amount the Recipient Group would have retained had the Tax or increased income tax not been payable.

Tax effect of Claims. If a party (payor) is liable to pay an amount to another party (recipient) in respect of a Claim and that payment is treated as income under the Tax Law such that the payment is subject to income tax payable by the recipient, or the Head Company of any Consolidated Group of which the recipient is a member, (collectively the recipient Group) under the Tax Law, then the payment must be grossed-up by such amount as is necessary to ensure that the net amount retained by the recipient Group after deduction of Tax or payment of the increased income tax equals the amount the recipient Group would have retained had such income tax not been payable, after taking into account any benefits or relief relating to Tax obtained or to be obtained by the recipient Group in relation to such Claim or payment. For the avoidance of doubt, this clause 7.4 does not apply insofar as the receipt of the Purchase Price under clause 3 by the Sellers is liable to Tax.

Tax effect of Claims. If a party (payor) is liable to pay an amount to another party (recipient) in respect of a Claim and that payment increases the income tax payable by the recipient under the Tax Law, then the payment shall be grossed-up by such amount as is necessary to ensure that the net amount retained by the recipient after deduction of Tax or payment of the increased income tax equals the amount the recipient would have retained had the Tax or increased income tax not been payable, except that: (a) the gross up will not operate in relation to Tax under the Tax Law to the extent that payment by the Seller is in respect of a breach of Warranty in relation to non-receipt of an amount that would, if received, have been assessable income in the hands of the recipient, or is in respect of an amount referable to the recipient’s liability to a Third Party for which the recipient may otherwise claim a deduction under the Tax Law; and (b) to the extent a Claim in relation to Tax only relates to a timing difference (for example, an amount being deductible in a preceding year rather than in the following year) then the Claim shall be limited to any interest or charge levied as a result of the late payment of Tax.

Tax effect of Claims. If a party (Payor) is liable to pay an amount to another party (Payee) in respect of a Claim and that payment increases the income tax payable by the recipient as required by law, then the payment must be grossed-up by the amount necessary to ensure that the net amount retained by the Payee after deduction or payment of the increased tax equals the amount the recipient would have retained had it not been payable, except that: (a) the gross up will not operate to the extent that payment by the Seller for breach of a Warranty in relation to non-receipt of an amount that would, if received, have been assessable income in the hands of the Payee, or is in respect of an amount referable to the Payee’s liability to a third party for which the Payee may otherwise claim a tax deduction by law; and (b) to the extent a claim in relation to Tax only relates to a timing difference, then the claim must be limited to any interest or charge levied as a result of any late payment of Tax.

Tax effect of Claims. If a Party (Payer) is liable to pay an amount to another Party (Payment Recipient) in respect of a Claim and that payment is treated as income under Tax Law such that the payment increases the income Tax payable by the Payment Recipient under Tax Law, then the payment must be grossed- up by such amount as is necessary to ensure that the net amount retained by the Payment Recipient after deduction of Tax or payment of the increased income Tax equals the amount the Payment Recipient would have retained had the Tax or increased income Tax not been payable.