When facing a potential dispute, there are many aspects and
questions to consider. One item you should always include on your
to-do list is tax. Different disputes and different ways of
resolving the disputes lead to a variety of tax considerations. The
key is to be aware of the tax consequences beforehand and to avoid
any unpleasant surprises afterwards.
Understand the tax consequences as early as possible
As with all preparations for future disputes, when it comes to
tax treatment, the best preparation is often done well before any
dispute arises - when negotiating contracts or planning the
business model.
At the latest when you anticipate, or know, that you will face a
dispute, you should analyse what the claim that you are making, or
that the counterparty is making, means from a tax perspective. In
addition to understanding the tax consequences for your own
business, it is beneficial to understand, at least to some extent,
the tax consequences for the
