Taxation and Currency Issues in Damages Awards
How to Ensure Tax and Currency Issues Are Appropriately Reflected in Damages Awards
January 18, 2023DownloadsDownload Article
This article from Global Arbitration Review was first published December, 2022. The entire article is available at https://globalarbitrationreview.com/guide/the-guide-damages-in-international-arbitration/5th-edition/form
Of the many issues facing tribunals and judges in quantifying awards of damages involving issues of valuation of lost profits or shareholder value, the treatment of taxation and of currency issues are often the subject of limited discussion by experts and legal counsel.
However, both issues can have a significant effect on the final amount awarded. For a decision-maker charged with restoring the claimant to the financial position it would have occupied but for the complained-of act, it is important to be aware of the circumstances in which such issues arise and the appropriate – and proportionate – ways of ensuring that they are dealt with appropriately.
This article discusses these points, with numerical examples and specific coverage of taxation and damages in the UK, USA, and France.
Reproduced with permission from Law Business Research Ltd