Analyzing the Constraints of the OECD Corporate Mediation Process
Tax Notes Talk
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Under Water Lease
The original tenant may need to pay the new tenant to assume the unfavorable terms of lease. The primary issue for the new tenant who agrees to assume an under water lease is whether the payment they receive from the original tenant is taxable income. There's a longstanding line of case law holding such payments are in fact not taxable to the asset need.
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