Compensation for Losses and Representations and Warranties in the Context of Tax Law: Theoretical and Practical Issues

Taxation issues that practicing lawyers face in their work can be grouped into two main areas. The first is tax legislation and the practice of its application. This area typically dominates questions related to tax audit procedures and the application of tax law norms concerning expenses, deductions, and other similar categories. The second  area is civil legislation and contractual practice. Virtually any transaction includes tax-related provisions. These can be divided into direct and indirect. Direct provisions include, for example, clauses on VAT in contracts. Indirect provisions are specific clauses in contracts concerning warranties and indemnities. Until 2015, these provisions lacked normative support but were used in practice. This article, drawing on the experience of concluding and executing various transactions, representing organizations during tax audits, and based on academic and normative materials, examines the categories of warranty and indemnity, as well as the practice of including tax provisions in contracts. 

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