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 ?
Applying the safe harbor: T begins a new activity in year 1 and incurs losses from that activity in years 1,3, and 6.
Cochran and Ganze are suing Seefried, Skinner, Partner Colorado CU, Safe Harbor Services and others under two claims.
I would like to ask legislators, regulators, and academics to look at the dialogue on costs and benefits, and consideration of the collateral effects of safe harbors that preceded their enactment in jurisdictions throughout the world.
Either way, the safe harbor contributions can be limited to employees earning less than $120,000 in 2017.
Underwood will succeed Marshall Funk, Safe Harbor's CEO and co-founder who has been named chief
The safe harbor is one way for plan sponsors to help participants maintain their accounts securely in a tax-sheltered retirement fund-and eliminate the burden on themselves.
that registered on the Department of Commerce's Safe Harbor list were also permissible.
The taxpayer can't use actual expenses in a year in which the simplified safe harbor method is chosen.
Forbes contributor Emma Woollacott pointed out that the European Parliament voted some time ago to suspend the Safe Harbor but the European Commission has not done so, "preferring instead to hold the threat of suspension over the United States' head."
In response, TEI (and others) recommended that the IRS and Treasury Department establish a 15-year safe harbor amortization period for acquisitive transaction costs under the authority of Treas.
No depreciation is allowed for the years in which the safe harbor is elected, but it is permitted in years in which the actual-expense method is used.
The safe harbor method can be used whether you own or rent your home.