Short Taxable Year Clause Samples
The Short Taxable Year clause defines how tax obligations are handled when a taxpayer's accounting period is less than the standard twelve months, often due to events like the start or end of a business, mergers, or changes in accounting methods. This clause specifies the procedures for calculating income, deductions, and tax liabilities for the shortened period, ensuring that all financial activities within that timeframe are properly reported. Its core function is to provide clear guidance for tax compliance in non-standard fiscal years, preventing confusion and ensuring accurate tax reporting.
Short Taxable Year. The Trustee shall prorate the Annuity Amount on a daily basis for a short first taxable year and for the short taxable year during which the payment of the Annuity Amount terminates. In the case of a taxable year which is for a period of less than twelve (12) full months, other than the last taxable year of the trust, the Annuity Amount shall be the amount otherwise determined multiplied by a fraction, the numerator of which is the number of days in the taxable year of the trust, and the denominator of which is 365 (or 366 if a leap year). If the last taxable year of the trust is less than twelve (12) full months, the Annuity Amount shall be the amount otherwise determined multiplied by a fraction, the numerator of which is the number of days in the period beginning on the first day of such taxable year and ending on the day the trust terminates, and the denominator of which is 365 (or 366 if a leap year).
Short Taxable Year. For purposes of Sections 5.4(a) and (b), whenever it is necessary to determine the liability for Taxes of the Subject Company for a portion of a taxable year or period that begins before and ends after the Closing Date, the determination of the Taxes of the Subject Company for the portion of the year or period ending on, and the portion of the year or period beginning after, the Closing Date shall be determined by assuming that the Subject Company had a taxable year or period which ended at the close of business on the Closing Date, except that real, personal and intangible property Taxes and exemptions, allowances or deductions that are calculated on an annual basis, such as the deduction for depreciation, shall be apportioned on a time basis.
Short Taxable Year. For purposes of Sections 4.2(a) and (b), ------------------ whenever it is necessary to determine the liability for Taxes of the Subject Company for a portion of a taxable year or period that begins before and ends after the Closing Date, the determination of the Taxes of the Subject Company for the portion of the year or period ending on, and the portion of the year or period beginning after, the Closing Date shall be determined by assuming that the Subject Company had a taxable year or period which ended at the close of business on the Closing Date, except that (i) real, personal and intangible property Taxes and exemptions, allowances or deductions that are calculated on an annual basis, such as the deduction for depreciation, shall be apportioned on a daily basis and (ii) gaming taxes shall be calculated on an annual basis and apportioned between the portion of the year ending on the Closing Date and the portion of the year beginning after the Closing Date in proportion to the adjusted gross proceeds determined for the gaming tax in each portion of the year using the weighted average gaming tax rate for the calendar year ending on December 31, 2004.
Short Taxable Year. For purposes of Sections 5.3(a) and (b), whenever it is necessary to determine the liability for Taxes of the Company for a portion of a taxable year or period that begins before and ends after the Closing Date, the amount of liabilities for Taxes of the Company for the portion of such taxable year or period ending on, and the portion of such taxable year or period beginning after, the Closing Date shall be determined, to the extent possible, on the basis of an interim closing of the books as of the close of business on the Closing Date; PROVIDED, HOWEVER, that in the case of any Taxes calculated on an annual basis, and only to the extent not practicable to apply the interim closing of the books method, the amount of such liabilities for such Taxes for the applicable portion of such taxable year or period shall be equal to the amount of all such Taxes for such taxable year or period multiplied by a fraction, the numerator of which shall be the number of days from the beginning of such taxable year or period through the Closing Date, and the denominator of which shall be the number of days in such taxable year or period. For purposes of the foregoing sentence, if a taxable year or period is undefined with respect to any real or personal property Tax that is billed annually, then such Tax shall be deemed due and payable for the calendar year in which the Tax is due and payable.