What does Tax arrangements mean? Arrangements are “tax arrangements” if, having regard to all the circumstances, it would be reasonable to conclude that the obtaining of a tax advantage was the main purpose, or one of the main purposes, of the arrangements.
Tax Sharing and Allocation Agreements are contracts that describe and coordinate the allocation of tax responsibility and benefits among the named parties for a particular transaction or for a specific taxable period.
Tax Sharing and Allocation Agreements are often used to allocate the burden of federal and state taxation among members of a consolidated group who, under applicable tax rules, are liable on a joint and several basis for tax obligations of the corporate group during tax years in which they are members.
Fairness: A profit sharing agreement, when drafted effectively, ensures that each party gets a fair profit share based on what they're bringing to the venture. This reflects the risks each party takes when taking on the project. Clarity: Your contract provides a clear framework for what's expected of each party.