12:04
my mom is coming up to ithaca to bring me thanksgiving food :)
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LSDefine
Simple English definitions for legal terms
tax costs
Read a random definition: subordinate
A quick definition of tax costs:
Term: Tax Costs
Definition: Tax costs refer to the extra money a company has to pay in taxes after a business deal or transaction. It can also refer to a losing party in a lawsuit trying to avoid paying the legal fees of the winning party. This is done by making a "motion to strike" or a "motion to tax costs" based on laws or contracts. This is because legal fees can be very expensive and the losing party may not want to pay them.
A more thorough explanation:
Tax costs refer to the increased tax liabilities resulting from a corporate transaction or a losing party's challenge to pay certain costs of the winning party in litigation.
A company merges with another company, resulting in increased tax liabilities due to the transaction.
In a lawsuit, the winning party incurs litigation costs and requests that the losing party pay for them. The losing party can challenge their responsibility for the litigation costs by making a "motion to strike" or a "motion to tax costs" based on applicable laws or contracts controlling the situation.
These examples illustrate how tax costs can arise from corporate transactions and litigation, and how a losing party can challenge their responsibility for paying certain costs.