Black Cat Corp. wishes to conduct an asset purchase of Shylo Inc. so that it does not incur the unpaid taxes debt that Black Cat acquired prior to the asset purchase. Will the asset purchase achieve this goal?

Question

Quizplus · Accepted Answer

In an asset purchase, generally, the buyer is not responsible for the seller's debts and liabilities. However, tax liabilities can be an exception where the buyer might still be held liable for unpaid taxes related to the assets purchased.