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Tax Sharing Agreement

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This is an agreement whereby the parent company in a consolidated group is responsible, on behalf of the group, for the payment of income tax related liabilities. If the parent company fails to fully discharge its obligation to pay the group’s tax liability, subsidiary members that were part of the group become jointly and severally liable. This agreement can be used by small businesses or other entities that have subsidiary group members and want to ensure the prompt and timely tax payments on behalf of the entire group.

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