Safe harbor

A safe harbor is a legal provision to reduce or eliminate legal or regulatory liability in certain situations as long as certain conditions are met. The term also refers to a “shark repellent” tactic used by companies who want to avert a hostile takeover and purposefully acquire a heavily regulated company to make themselves look less attractive to the entity considering taking them over.

Safe harbor can also refer to an accounting method that avoids legal or tax regulations, or one that allows for a simpler method of determining a tax consequence than the methods described by the precise language of the tax code—Read more at Investopedia. Hayes, Adam. “Safe Habor.”13 June 2019