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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
It is not clear what impact a revamp of the EU and US data privacy legal frameworks would have on Safe Harbour. According to the Commerce Department official, "we have been assured by the European Commission that Safe Harbour will not be affected by changes in the Data Protection Directive".
This could effectively render Safe Harbour obsolete.
Companies that sign up to Safe Harbour agree to adhere to these principles:
Useful Safe Harbours. There are several substantive safe harbour rules in use in various countries that TEI commends to the OECD for its consideration.
Most large multinational companies are familiar with and beneficially employ the safe harbour rules promulgated by the United States for the Services Cost Method (SCM) and Associated Shared Services Arrangement (SSA) for SCM transactions.
Establish a safe harbour range for tangible products based on a pricing differential between arm's length and non-arm's length parties.
However, this case occurred before the enactment of the safe harbour provisions.
If the taxpayer prepared the same return with the same error themselves, without engaging a tax agent, there would be no question of a safe harbour since there is no agent engaged.
As the safe harbour provisions say nothing about the culpability of the taxpayer, it is possible that a taxpayer may escape liability under the legislation despite displaying recklessness or intentional disregard of a taxation law.
In addition to providing service, Safe Harbour believes that it is crucial to advertise.