Group Reorganization Planning Form

Back dating document

The event did not happen during

This is a fraud on the tax authorities, a criminal offence and is likely to get the lawyer who prepared the document disciplined by his regulator and possibly also charged as a co-conspirator. These are questions he will probably be asked by the judge or regulator if things go wrong and to which he will need convincing answers. Business sales are not required to be in writing to be effective. This trend is not only a national one - these types of lawsuits are being threatened in Wisconsin as well. In a Second Circuit court case, the court thought about backdating tax shelter documents as part of a conspiracy to violate the United State federal conspiracy statute.

If you need help with backdating documents, you can post your legal need on UpCounsel's marketplace. These two general areas mean that some legal due diligence should be carried out to identify and address areas for corrective action.

You will also need to consider two other things from a legal perspective. If allowed, up to six-month backdating would apply as long as the buyer pays for that time period. There have been cases where documents have purposely been backdated with a criminal intent or for a purpose of perpetuating a fraud or committing a crime. There can be adverse consequences that the parties will want to be aware of.

However, he only realizes this in January and so wishes to backdate the document to December. This is because documents take time to draft, negotiate and execute. Ascertain if the backdating would violate a law or adversely affect the rights of third parties including government and regulatory bodies. Even if tax code provisions aren't violated, backdating documents can cause criminal liability, according to conspiracy statutes. Where backdating is done for financial gain, it may also constitute the more dull-sounding criminal offence of obtaining a pecuniary advantage by deception.

Such relation back or forward contravenes no principle of law and is determined by the intent of the parties as deduced from the instrument itself. If the transaction has a retroactive effect between the two parties, it's not likely this will apply if nonparties become involved. In this situation, it may be possible to create a document after the event which recites what actually happened, and which records the key terms of the transaction. Rather, it is the use of the backdated documents by the parties or their counsel that may violate the law.

Such a misrepresentation would be

The event did not happen during the time period required for the benefit so an attempt is being made to pretend that it did. Such a misrepresentation would be uncovered and undone by an examination of when the parties instructed their solicitors and other means, such as computer records of when the documents were created.

Commercially it is useful to have matters set out in writing so that there is certainty as to the existence of an arrangement and as to what the terms are. In certain cases a criminal act may negate insurance.

This is the truth of the matter. The most common transaction that must be in writing is contracts and declarations of trust that convey an interest in land. The insurance company may or may not allow backdating depending on the state where the person lives. Secondly, the transfer may trigger liabilities, such as where the relevant group companies participated in a defined benefit pension scheme.

Sometimes it's possible to describe a situation in the contract's body without needing to backdate it, which is preferred. However in practice, for both good reasons and bad, backdating of documents does occur. There are some ways in which the lawyer can give himself some protection in agreeing to such a request but they are not foolproof. It's important to consider if backdating will contribute to or create the look of a conspiracy.

These partial documentation formalities do not change the ability of parties to enter into the agreement verbally. This is true when there's a complex deal that has multiple documents and the retroactive date is a few months behind. The first and most important thing to note about the consequences of backdating a document is that it is potentially a criminal offence. In such cases it would be perfectly proper for the parties to re-execute an identical document to replace the missing one. So any attempt to rely on the reduction before registration would be ineffective.