Archive - July 2014
Is a Failure to File an FBAR Covered under the Tax Indemnity in a Stock Purchase Agreement? July 11, 2014
My job as a lawyer is to worry about the client’s finances and think of various scenarios that could cost my clients. One worry that has occupied my mind in the past has to do with FBARs and Stock Purchase Agreements. Imagine you are a private equity fund and you purchase a later stage private company. Among the myriad of documents that you will probably sign is a Stock Purchase Agreement, Unit Purchase Agreement (or some other similarly designated purchase and sale agreement if the company is a pass-through entity). Typically you would hire accountants to do due-diligence. They will...