Why are there clauses in Compromise Agreements, which state the employee must take the risk of paying tax?
All Compromise Agreements provide that where an employee gets an ex-gratia tax-free payment it is the employee who takes the risk of the taxman claiming back tax. This is called the ‘indemnity clause’ and because of this clause we will always want to see the terms of your employment contract and any related documentation so that we can advise you properly.
