Operational and Financial Resilience: Managing Tax Risk on Emerging from COVID-19
March 01, 2021DownloadsDownload Article
In this article, our experts examine the tax challenges businesses will face following COVID-19. The full scale of the impending financial crisis following the pandemic is not yet known but many corporates will need to be resilient to mitigate the unexpected risks.
This is an extract from Tax Journal, first published December 11, 2020. The whole publication is available at: https://www.taxjournal.com/docs/article-files/ad-9-read-only.pdf?sfvrsn=988de737_2
“Given unsustainable corporate debt in the UK alone is estimated to exceed £100bn as a result of COVID-19, many corporates will need to be resilient to survive. This may be achieved through operational or financial restructuring.
Financial restructuring may involve debt releases, equity injections and changes to terms of borrowing. These can have unexpected tax consequences for the unwary. Tax payment deferrals, such as VAT, may aid tighter cash flow management."
Originally published in Tax Journal, 11 December 2020.