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US: New '2020 recovery rebates' may create inequalities for mobile employees

The Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), signed into law by the President on 27 March, 2020, delivers relief in the form of an immediate payment from the IRS for certain individuals, including many mobile employees. Mobility programs should evaluate the impact of these potential payments and the related tax credit on their mobile populations, programs, and policies.

Australia announces international tax measures, restrictions on foreign investment and stimulus

Australia has announced a range of measures in response to the COVID-19 crisis that broadly are consistent with the global response, including economic stimulus and cash flow support measures. Measures specifically related to international tax and transactions include: 1) administrative guidance around residency and permanent establishment (PE) issues arising due to travel restrictions; 2) changes in the Foreign Investment Review Board (FIRB) framework for assessing transactions; and 3) stimulus measures that could affect cross-border transactions, including accelerated depreciation and instant asset write-offs.

US Senate passes ‘Phase Three’ COVID-19 economic stabilization legislation

The Senate late on March 25 voted 96 to 0 to pass a $2 trillion “Phase Three” COVID-19 economic stabilization package, H.R. 748, the ‘Coronavirus Aid, Relief, and Economic Security Act’ (the CARES Act), that features significant tax provisions and other measures to assist individuals and businesses impacted by the economic effects of the COVID-19 pandemic. The House passed the CARES Act without change and President Trump signed the legislation into law on March 27, 2020.

IRS updates operations status, introduces People First Initiative

Taxpayers and practitioners have had many questions about the status of IRS operations during the current pandemic. The IRS press release issued on March 24 answers some of those questions. The IRS People First Initiative unveiled on March 25 provides more clarity. At the same time, unresolved issues remain around the rapidly evolving situation. We will continue to request additional clarifications from the IRS and will provide updates on this fluid and challenging situation.

Innovation & Capital Incentives - Improving your cash position

Cash preservation and generation is the number one priority for many businesses. R&D claims are cash generating regardless of a company’s tax position and are therefore a way in which companies can accelerate cash into the business. Companies should also be considering other ways to maximise cash tax deductions, particularly in terms of capital expenditure and other incentives.

Chancellor announces measures for employees affected by Coronavirus

The Chancellor announced that the Government is going to cover up to 80% of the current wage level of an employee who is designated as a “furloughed” worker, due to the Coronavirus pandemic, provided they are kept on the employer’s payroll. There will be a ceiling of £2,500 a month on salaries to which this applies. Employers can still top up salaries above this level if they choose to.

IR35 reforms to be delayed for 12 months - update

Yesterday we reported that, against the backdrop of the challenges posed by the Coronavirus (COVID-19), the Government has announced that implementation of the new IR35 off payroll working rules, which are to apply to large and medium sized businesses in the private sector, are to be delayed from 6 April 2020 until 6 April 2021. The Government has been clear that this is a deferral and not a cancellation.

IR35 reforms to be delayed for 12 months

Against the backdrop of the challenges posed by the Coronavirus (COVID-19), the Government announced last night that implementation of the new IR35 off payroll working rules, which are to apply to large and medium sized businesses in the private sector, are to be delayed from 6 April 2020 until 6 April 2021.

Latest news - Coronavirus

Due to the Coronavirus which has now been declared a global health emergency, many employers are rightly concerned for their employees who are currently in China. So what, as an employer, should HEIs be doing?

US: House passes COVID-19 relief bill; talks continue on additional tax measures

President Trump on March 13 declared a national emergency to address COVID-19. The President’s declaration instructs the Treasury and the IRS to provide relief from tax filing deadlines to individuals and businesses, as appropriate. Specific details on disaster tax relief, including new filing deadlines and eligibility requirements, are expected to be announced by the Treasury Department and the IRS.

Australia announces tax breaks and cash flow support to help cushion the economic blow of COVID-19

On 12 March 2020, the Federal Government announced its comprehensive package (AUD17.6 billion) of measures to respond to the current economic challenges confronting the Australian economy as a result of the continued spread of the coronavirus (COVID-19). The focus of the package is on “backing business and keeping Australians in jobs” and from a tax perspective, includes significant concessions for capital investment from today in the form of enhanced tax write-offs for depreciable assets, as well as cash flow assistance to small and medium-sized businesses.