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that petitioner shall be responsible for all corporate income
taxes due with respect to the businesses carried on by petitioner
and its subsidiaries and, subject to paragraph 6(c), be entitled
to all refunds attributable thereto.
Paragraph 6 of the agreement, entitled “Refunds of Federal
Corporate Income Tax Resulting from Carrybacks of Net Operating
Losses and Other Items”, provides under subparagraph (a) that if
for any period ending after the effective date, petitioner
realizes a net operating loss or credits that may be carried back
to taxable years ending before December 31, 1986, Interlake, to
the extent it receives any refund from the Internal Revenue
Service (IRS), shall within 10 days of receiving the refund pay
petitioner the amount of the refund, plus interest. All matters
relating to the filing of a claim for refund shall be determined
and handled solely by petitioner, provided that petitioner
furnishes Interlake a copy of any claim for refund within 14 days
of filing the claim.
Subparagraph 6(b) provides that if the IRS (A) disallows any
portion of the net operating loss or excess credits carried back
to a taxable year ending prior to December 31, 1986, or (B)
proposes to adjust the Federal corporate income tax liability of
petitioner, or of any member of the affiliated group of which
petitioner previously was the common parent, and seeks to recover
from Interlake all or any portion of the Federal corporate income
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Last modified: May 25, 2011