Is Sales tax a separate liability at close or a part of NWC calculation?

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June 06, 2022

by a searcher from University of Virginia-Darden - Darden School of Business in Toronto, ON, Canada

Hi all,

I'm trying to understand the normal practice of treating Sales tax when structuring a deal.

Is it normally treated as a separate liability that has to be adjusted for in the purchase price at Close, or is it calculated as part of NWC?

Appreciate any advice.

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