Common use of Tax Consequence Clause in Contracts

Tax Consequence. This Trust Agreement is entered into and Employer contributions are made with the intent, condition and understanding that contributions made by an Employer to the Trust or to the account thereof are legally deductible by the Employer for federal income tax purposes, are not subject to federal, Social Security or withholding tax, do not constitute a portion of the “Regular Rate” under the Fair Labor Standards Act and are not taxable to any Employee as compensation. In the event that it is finally determined by an appropriate agency or judicial tribunal of competent jurisdiction (whether or not an Employer or Employee is a party to the proceeding involved in the determination) or in the event that any applicable tax law, regulation, ruling or policy provides that contributions are not so deductible and are not tax exempt, then all parties hereto individually and collectively agree to take any and all reasonable action that may be necessary or desirable to obtain and maintain tax deductibility and exemptions.

Tax Consequence. This Trust Agreement is entered into and Employer contributions are made with the intent, condition and understanding that contributions made by an Employer to the Trust Fund or to the account thereof are legally deductible by the Employer for federal income tax purposes, are not subject to federal, Social Security or withholding tax, do not constitute a portion of the “Regular Rate” under the Fair Labor Standards Act and are not taxable to any Employee as compensation. In the event that it is finally determined by an appropriate agency or judicial tribunal of competent jurisdiction (whether or not an Employer or Employee is a party to the proceeding involved in the determination) or in the event that any applicable tax law, regulation, ruling or policy provides that contributions are not so deductible and are not tax exempt, then all parties hereto individually and collectively agree to take any and all reasonable action that may be necessary or desirable to obtain and maintain tax deductibility and exemptions.