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In summary, if your reasons for backdating are legitimate rather than fraudulent or deceitful, and the document is transparent about the backdating then it will likely be lawful.To identify whether the backdating is lawful or not it can be helpful to ask some of the following questions: Above all, it is best to seek professional legal advice if you wish to backdate a contract.Alternatively, agreements allow you to conduct business activities with certainty by assuring parties of their obligations.In some instances, you may wish to backdate a contractual agreement to fulfil a specific objective.That said, there are many circumstances where it may be common or appropriate to backdate a contract.
In the case mentioned above, the taxpayers had such a retroactive effective date.
The case was instructive of several principles that apply to retroactive effective dates.
These include:-impermissible "backdating" generally involves an effort to make it appear that the document in question was executed on a date prior to its actual execution date; there is an effort to mislead the reader.
There are many reasons that you might want to enter into an agreement.
You might wish to buy or sell a business, an asset or property.
This is because the legality of backdating varies between circumstances.