safe harbor


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Safe harbor

Often used in risk arbitrage as a form of shark repellent. A target company acquires a business so onerously regulated that it makes the target less attractive, giving it, in effect, a safe harbor.

Safe Harbor

1. An anti-takeover measure in which a potential target company buys a subsidiary in an industry that is so strictly regulated that it makes acquiring the target company difficult and/or expensive.

2. Legal protection from a lawsuit. Regulators often apply safe harbor to some corporate actions as long as those actions are taken in good faith.

safe harbor

1. A regulation that protects individuals or corporations from the legal consequences of certain actions they undertake. For example, firms filing forecasts with the SEC have a safe harbor from individuals or businesses that use the forecasts and are subsequently damaged (that is, they lose money), as long as the forecasts were prepared in good faith.
2. A tactic in which the target of an unfriendly takeover makes itself less attractive by taking a specific action.

safe harbor

A system of rules that, if followed exactly, will provide protection from the effects of other laws. For example, in a 1031 like-kind exchange, the use of a qualified intermediary and compliance with strict IRS deadlines will result in the ability to avoid paying taxes at the time of a sale.This is the safe harbor from normal tax liability rules.There are other ways to complete a like-kind exchange without paying taxes,but the seller embarks upon those uncharted waters at its own peril. A very slight miscalculation could result in the imposition of large taxes, penalties, and interest at a later date.

References in periodicals archive ?
2015-56 provides a nonexclusive list of 18 types of costs incurred as part of a remodel/refresh project that are eligible for the safe harbor.
The ECJ considered two questions: (1) whether an EU member state Data Protection Authority (DPA) that receives a compliant about a data transfer is bound by the European Commission ruling that the Safe Harbor provides an adequate level of protection; and (2) whether the DPA must conduct its own investigation into practices since the Commission ruling.
A key component of the program is to assist Safe Harbor patients as they either return to active duty or seek employment upon completion of treatment.
This new Safe Harbor testing will now provide access to seafood and fish certified to contain significantly less mercury than considered by the U.
The safe harbor 401(k) contribution must be 100% vested immediately.
The commission report does not call for ending Safe Harbor but does recommend that U.
The Elective Employer Safe Harbor matching contribution is dollar for dollar on the first 3 percent deferred by each non-HCE and 50 percent on the dollar for the next 2 percent deferred, for a total of 4 percent or 5 percent of employee deferrals.
As discussed in our December 23, 2003, comments on the proposed regulations and at the January 14, 2004, public hearing, we are concerned about the proposed elimination of the cost safe harbor and its replacement with the simplified cost-based method (SCBM).
firms that the Germans view the model contract as the preferred course in lieu of waiting for the safe harbor outcome.
These safe harbor regulations describe certain financial arrangements that OIG has determined fall outside the reach of the antikickback statute.
Under the 90% safe harbor, Joe pays at least 90% of the tax for the current year.
PharmaVigilant, a provider of integrated clinical trial software solutions, announced today that it received Safe Harbor Certification effective April 5, 2011.