Wednesday, March 8, 2023
Manoj Viswanathan (UC-San Francisco; Google Scholar) presents Tax and Expectation Damages at Toronto today as part of its James Hausman Tax Law and Policy Workshop Series hosted by Benjamin Alarie:
The tax consequences of expectation damages can leave non-breaching parties worse off than had the contract been performed. This normatively troubling lack of restoration could be remedied by (1) modifying how contract damage awards are taxed or (2) adjusting (in dollar terms) the expectation damages paid by the non-breaching party.
By examining existing rules, interrogating the normative foundations of both tax and contract law, and applying an original framework to an existing Circuit Court split, this Article addresses how to effectively do both.