Tax Equalization and Severance Agreement

[Sandraisa]

Jurisdiction

Texas

I was on an expatriate assignment from 2013-June 2015 and had an agreement with a Canadian company to be tax equalized. The agreement was that I would claim the foreign tax credit when filing taxes in the US and submit a portion of my tax refund to the company. When I was transferred back to the US in June, I was laid off in December 2015 with a severance agreement. The severance agreement did not mention the tax equalization for 2015 and it stated that this agreement would supersede all prior contracts. The agreement was under the US affiliate of the Canadian parent company. However, in the section of Employee Release, it does mention all subsidiaries including the parent company. Almost 21 months later, the company is threatening lawsuit if I don't pay back the refund. They are claiming I signed the Severance agreement under the US affiliate and I had an agreement with the Canadian company. There was no mention of the tax reconciliation in the transfer agreement back to the US affiliate or the severance agreement.

Am I in breach of contract if the implication of the severance agreement was that all other contracts were terminated including the parent company and all it's subsidiaries?

 

[army judge]

Am I in breach of contract if the implication of the severance agreement was that all other contracts were terminated including the parent company and all it's subsidiaries?

You should consult a tax lawyer or a CPA for starters.

What you learn in initially will determine your next steps.

You should act with rapidity, because the longer you delay could cause you to accrue unnecessary liabilities that could be easier to mitigate today.

 

[Sandraisa]

You should consult a tax lawyer or a CPA for starters.

What you learn in initially will determine your next steps.

You should act with rapidity, because the longer you delay could cause you to accrue unnecessary liabilities that could be easier to mitigate today.

Would I consult with a tax lawyer or would an employment law lawyer better?

 

[hrforme]

I suspect he meant CPA

 

[army judge]

Would I consult with a tax lawyer or would an employment law lawyer better?

Right, a CPA or a tax lawyer.

An employment lawyer might come later, depnds upon what contract, if any applies.

Regardless of any employment contract, I suspect there is unexpected tax liability.

You might start by contacting HR at the former employer and seek guidance.

It could simply be an oversight, and maybe the company will help you remedy it.

 

[Sandraisa]

Right, a CPA or a tax lawyer.

An employment lawyer might come later, depnds upon what contract, if any applies.

Regardless of any employment contract, I suspect there is unexpected tax liability.

You might start by contacting HR at the former employer and seek guidance.

It could simply be an oversight, and maybe the company will help you remedy it.

I'm not sure I explained myself right. There was no issue with my taxes submitted in 2015. So I don't think this would have anything to do with tax liability.

HR from the former company are the ones who called me to ask for tax refund. They would not be able to assist. Additionally, the company lawyer mailed me letter stating that they are willing to set up a payment plan.

The problem is the company wants me to honor the agreement we had established in 2013 for my expatriate assigned regarding my taxes. I contest that when they laid me off and I signed the separation agreement, I am no longer subject to the expatriate agreement terms. What type of lawyer should I seek?

 

[army judge]

The problem is the company wants me to honor the agreement we had established in 2013 for my expatriate assigned regarding my taxes. I contest that when they laid me off and I signed the separation agreement, I am no longer subject to the expatriate agreement terms. What type of lawyer should I seek?

Make it easy, talk to a general practice lawyer or two near you.

The initial consultation is normally offered at no charge.

Bring the documents you believe to be relevant, discuss your issues, ask a couple questions.

You'll know after those two meetings if follow up is necessary.

You may have waived your rights by taking the severance, but you'll know more in a couple of days after you've met with lawyers in your area.