New Tax on Third-Party Litigation Funding Income
This act introduces a new tax on profits earned by companies and third parties that finance lawsuits. The goal is to tax entities benefiting from litigation funding, which may affect the availability and cost of such services. Citizens might indirectly feel the impact on how some legal cases are financed.
Key points
Introduction of a new tax on profits from litigation funding by third-party entities, such as investment firms or funds.
The tax will be applied to income derived from litigation financing agreements, with certain exceptions for small amounts and traditional loans.
Entities disbursing funds from settlements or judgments will be responsible for withholding a portion of the tax at the source.
Status:
Introduced
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