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US Federal COVID relief to states restricts use for ‘net tax’ reductions

The American Rescue Plan Act enacted on March 11 provides over $195 billion in direct aid to states but includes a provision prohibiting the use of those funds to “either directly or indirectly offset a reduction in the net tax revenue” of a receiving state. Businesses should monitor tax measures potentially impacted by this provision and the status of Treasury guidance on the issue.

New Zealand Tax Tips: March 2021

This edition of Tax Tips provides a recap of the New Zealand Government's COVID-19 support measures and also discusses the NZ Inland Revenue's new exposure draft on the administration of the imported hybrid mismatch rule, which sets out the steps Inland Revenue expects taxpayers to have undertaken before claiming deductions for cross-border related party payments.

India: Government issues circular for individuals stranded in India due to COVID-19 travel restrictions

The Indian government has issued the much-awaited circular for individuals who were on a visit to India and then stranded due to COVID-19 travel restrictions. After referring to the applicability of treaty provisions, OECD commentary and some of the positions taken by other countries in dealing with a similar situation, the Indian government concluded that in the majority of cases these individuals will not trigger double taxation or get the relief from double taxation under the relevant treaty.

US Senate to begin action on House-passed COVID relief legislation

The US Senate this week is expected to begin consideration of the $1.9 trillion ‘American Rescue Plan Act’ that was approved by a House vote of 219 to 212 in the early hours of February 27. The House-passed legislation includes tax relief and tax increase provisions that are estimated by the Joint Committee on Taxation (JCT) staff to reduce overall federal revenues by $590.7 billion over 10 years.

US House Ways and Means Committee advances COVID relief bill

The House Ways and Means Committee recently advanced legislation to implement budget reconciliation instructions regarding COVID-19 relief. The budget resolution passed by Congress included reconciliation instructions for 12 House committees to draft legislation to implement President Joe Biden’s proposed $1.9 trillion COVID-19 relief plan.

US - House and Senate pass budget resolutions with reconciliation instructions for COVID relief

The House and Senate have passed budget resolutions that are the first step in advancing COVID-19 relief under the reconciliation process that requires only a simple majority vote for passage. The budget resolutions include reconciliation instructions for committees to draft legislation to implement President Joe Biden’s proposed $1.9 trillion COVID-19 relief plan for individuals, businesses, and communities that would build on the $900 billion COVID relief package enacted in December.

HMRC’s audit compliance checks on the “Eat Out to Help Out” scheme

Over the past few weeks we have seen a marked increase in HMRC audit activity regarding the 'Eat Out to Help Out' (EOTHO) scheme. HMRC had initially anticipated that the scheme would cost approximately £500m, but the eventual claim figure was £840m. HMRC has now started an information gathering and review process and has initially contacted 4,000 claimants, with selected businesses being required to attend a virtual meeting and/or telephone interview as a first step.

UK: New HMRC and OECD guidance – time to review displaced workers

A year has passed since the first COVID-19 lockdown in the United Kingdom (UK) and lockdowns are still in force in many parts of the world. Since then, employers have been dealing with displaced workers globally – some of which may still now be stranded in an unexpected location. Both the UK tax authorities (HMRC) and the OECD have recently published additional guidance on the taxation of temporary displaced employees in response to concerns on the tax impact of COVID-19.

Los Angeles City Business Tax annual filing due March 1

Taxpayers conducting business in the City of Los Angeles, as well as in neighboring cities, may be subject to the annual Los Angeles City Business Tax (LACBT) with a filing deadline of March 1. As a result of the COVID-19 pandemic, with many employees working remotely, taxpayers unexpectedly may find themselves triggering a filing obligation or increasing/decreasing their level of business activity in Los Angeles. For companies subject to the tax but not yet registered, a voluntary disclosure program is available.

California's proposed budget would expand the California Competes Tax Credit

California Governor Gavin Newsom (D) advanced his fiscal year 2021-22 proposed budget to the legislature on January 8. The budget provides for expansion of existing business incentive and tax relief programs and introduces new initiatives to support and expedite California’s economic recovery in the wake of the economic dislocation brought about by COVID-19. Governor Newsom’s proposed budget includes increased funding for the California Competes Tax Credit (CCTC) in both fiscal years 2020-21 and 2021-22. The proposed budget also establishes a grant component of the California Competes program to expand the pool of businesses that can benefit from the program.

Biden proposes pandemic relief as first step in economic recovery plan

President-elect Joe Biden has proposed a $1.9 trillion emergency legislative package (the American Rescue Plan) to fund COVID-19 vaccinations, provide increased direct relief to individuals, and support communities. Biden said the proposal is the first step in a two-part plan that is needed immediately and will be followed by an economic recovery plan -- the Build Back Better Recovery Plan -- that he will outline in February.

Hong Kong: Exceptional arrangement for visa extension applications due to COVID-19

To mitigate some of the challenges presented by ongoing travel restrictions, the Hong Kong Immigration Department (‘ImmD’) has announced that it will start accepting visa extension applications for certain non-permanent residents from outside of Hong Kong, who as a result of COVID-19 have not been able to return to Hong Kong to submit their applications in a timely manner.

US: Year-end government funding bill includes COVID-19 economic relief and tax extenders

The US Congress recently approved a $2.4 trillion legislative package to fund the federal government through the end of the fiscal year, provide further COVID-19 economic relief, and extend certain expiring tax provisions. Additional measures include provisions to eliminate ‘surprise’ medical billing. The House passed the legislation by a vote of 359 to 53 and the Senate voted 92 to 6 to clear the legislation for President Trump’s expected signature.

US - Final regulations clarify qualified transportation fringe rules

The 2017 tax reform act generally eliminated the deduction for business expenses for providing employees with qualified transportation fringe benefits and for providing or paying for employee commuting. The IRS and Treasury have finalized regulations proposed in June 2020 on these disallowances. The final regulations provide helpful clarifications, especially as regards the application of the exceptions for QTFs to the disallowance and how the rules apply during the COVID-19 pandemic.

Corporate interest restriction - reasonable excuse for late filing

Where a business has a filing deadline which it is unable to meet due to the impact of COVID-19, we recommend it proactively contacts HMRC to discuss their circumstances, as it may be possible to agree a deferral of the issue of late filing penalties. HMRC has recently set out its policy for agreeing such a deferral of late filing penalties for a corporate interest restriction (CIR) returns.

What impact has COVID-19 had on corporate tax filing?

Many businesses will be aware that, due to the impact of the coronavirus (COVID-19) pandemic, Companies House provided companies with a 3-month filing extension by virtue of the "Corporate Insolvency and Governance Act 2020" and "Companies etc. (Filing Requirements) (Temporary Modifications) Regulations 2020". Despite this extension, there is currently no formal process for obtaining an extension from HMRC to the statutory filing deadline for corporation tax returns.

The Gathering Storm? The Other Side of the COVID Portal

In this recently published Bloomberg article, Will Morris, PwC’s Deputy Global Tax Policy Leader discusses tax trends in the wake of COVID (including international efforts to review the taxation of digital businesses) and considers what governments, international organisations and businesses should keep in mind to achieve beneficial solutions for everyone in the post-COVID world.

Further extension of Coronavirus Job Retention Scheme announced

On 5 November the Chancellor announced that the extension to the Coronavirus Job Retention Scheme (CJRS) will run until 31 March 2021. Under the extension, employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month. The Government also confirmed there will be a review of the policy in January, to decide whether economic circumstances are improving enough to ask employers to contribute more. In the meantime the Job Support Scheme has been postponed.

South Africa: Additional proposed relief for foreign remuneration exemption due to COVID-19

In June this year, the Disaster Management Tax Relief Bill, 2020, and the Disaster Management Tax Relief Administration Bill, 2020 (‘the COVID-19 tax relief Bills’), were introduced in Parliament in order to give effect to tax proposals and aimed at addressing the fiscal and economic effects of COVID-19 in South Africa. On 13 October 2020, the National Treasury and the South African Revenue Service presented a Draft Response Document on the 2020 Draft Taxation Laws Amendment Bill.

Government announces extension of the Coronavirus Job Retention Scheme

Over the weekend, we saw a significant amount of change in relation to the Government's Coronavirus support package for employers and employees. Initially, the Job Support Scheme (JSS) was due to be launched on Sunday 1 November, but has now been postponed due to the forthcoming lockdown in England (from 5 November until at least 2 December). As a result, the Prime Minister announced an extension of the Coronavirus Job Retention Scheme (CJRS), for the “month of November” but with some important changes to the original CJRS scheme. The availability of support under this extended scheme is welcome news for affected employers.

New Jersey budget expands Millionaire’s Tax extends CBT surcharge

The COVID-19 pandemic has strained and depleted the finances of state and local economies around the country. New Jersey is no exception. Citing deep revenue shortfalls, largely attributable to the pandemic, Governor Phil Murphy signed the Fiscal Year 2021 state budget into law September 29. The budget legislation adopts several changes to the personal and corporate income tax laws designed to help raise revenue.

Analyzing PE exposure resulting from current travel disruptions and remote work

In April, the IRS provided a maximum 60-day period to generally exempt foreign persons from being treated as engaged in a US trade or business (USTB) and/or from having a US permanent establishment (PE) to the extent such foreign person’s presence in the United States was deemed to be caused by the COVID-19 pandemic. While many employees continue to work remotely in different jurisdictions, whether by choice or due to the pandemic, the US Treasury Department and the IRS have not extended the relief period. As a result, companies may be risking USTB or PE exposure and inadvertently establishing a taxable presence in the United States.

NIC easement due to COVID-19 for employees not covered by a social security agreement

n April 2020, Her Majesty's Revenue and Customs (HMRC) issued guidance to employers about social security withholding obligations in the event employees temporarily returned to work in the UK from the EU, EEA or Switzerland. They now have followed this up with guidance on cases where employees returned to the UK from a country where the UK does not have a social security agreement.

US - Lenders not required to file Form 1099C for PPP loan forgiveness

The US CARES Act established the Paycheck Protection Program (PPP) which allows qualifying small businesses (eligible recipients) to obtain loans guaranteed by the Small Business Administration (SBA). The IRS has issued Announcement 2020-12, notifying lenders of covered loans made under the PPP that they should not file information returns or furnish payee statements under Section 6050P to report the amount of qualifying forgiveness with respect to those loans.

US: Remote workforce – unexpected state tax implications for employees, employers

In response to the COVID-19 pandemic, many US states have declared states of emergency and imposed temporary social-distancing measures and other restrictions. Many businesses, in turn, have implemented work-from-home requirements for their employees. However, what may be a surprise is that these changes may have significant unexpected state tax implications and could create potential tax risk for both individuals and their employers.

Senior Accounting Officer ("SAO") Deadlines - September 2020

We have confirmed with HMRC that SAO filing deadlines have been revised to align with the recent Companies House accounts filing extensions. At its simplest, a limited company with a 31 December 2019 year end for instance, would normally have to file its accounts with Companies House, and its SAO certification with HMRC, by 30 September 2020. The new rules provide for a three-month extension in this situation, moving both filing dates to 31 December 2020.

HMRC guidance on the R&D credits treatment of staffing costs for furloughed employees

HMRC has provided guidance on the R&D credits treatment of staffing costs for furloughed employees. HMRC's updated guidance provides that, as furloughed employees will have needed to cease all work for their employer, they cannot have been directly and actively involved in the R&D activity when furloughed, and therefore the costs of these employees will not qualify for R&D credits for any furlough period.

Safeguarding against Modern Slavery risk in the era of COVID

Modern slavery and its often hidden place in society is receiving notable front page media attention. Alongside this, corporate respect for human rights is becoming a priority consideration for commercial stakeholders and the public, and the reputational and financial damage for companies failing to uphold strong human rights standards have seen modern slavery compliance jump up the board room agenda. Simultaneously, the impact of COVID-19 has created unprecedented pressure on working practices and supply chain relationships, particularly with regard to workforce vulnerability. This article explores how businesses can turn this potential reputational risk into reputational opportunity.

Re A Company (Application to restrain presentation of petition) [2020] EWHC 1406 (Ch) - COVID-19: Winding up petition for company restrained by injunction

The High Court’s decision in Re A Company (Application to restrain presentation of petition) [2020] EWHC 1406 (Ch) has indicated that the Corporate Insolvency and Government Bill, despite not yet being in force at the time of the application (the Bill has since been granted Royal Assent on 25 June 2020), is to be treated as though it is active legislation in relation to winding up petitions, in anticipation of the legislation obtaining royal assent. It is apparent that the Court has used its right to take into account even the possibility of a change in the law, in order to make clear that creditors have little to gain from presenting COVID-19 related winding up petitions in advance of the Bill coming into force.

EU proposes COVID-19 Recovery Plan and [further] adjusted Work Programme

The European Commission has proposed a detailed COVID-19 Recovery Plan which includes more taxes going directly to the European Union. In the short term, the European Union will borrow to finance Member State investment in what is effectively the multi-annual financial framework (MFF) for 2021-2027. The framework will be discussed in the coming months and, if approved, put in place this year.

US - Taxpayers may elect to claim disaster losses in prior tax year

Taxpayers generally must deduct a loss under Section 165 in the tax year the loss occurs, but under Section 165(i) may elect to deduct a loss attributable to a federally declared disaster in the preceding tax year. In response to the COVID-19 pandemic, the President has issued a federal disaster declaration for all 50 states. Accordingly, taxpayers may elect to claim otherwise deductible losses sustained in 2020 and attributable to the pandemic on their 2019 tax returns. What constitutes a loss attributable to a disaster that qualifies for treatment under Section 165(i) depends on a taxpayer’s particular facts and circumstances.

COVID-19: The impact on VAT/GST systems

The COVID-19 pandemic has elicited a very different response when compared to previous financial crises. For example, governments cannot lean on policies that might increase demand, the standard fiscal stimulus for a regular economic downturn. Many governments are adjusting VAT/GST systems as a rapid response measure to assist with financial liquidity. In this Bulletin, we look at three specific areas.

Keeping up with Tax for Insurance - June 2020 edition

In this month’s edition, we present the following articles: Senior Accounting Officer: do you have a deadline on the horizon? Corporate governance response to COVID-19 and its future The benefits of real time R&D claims Operational Resilience: How to deliver on your tax needs and remain resilient Update on non-resident capital gains tax HMRC Time to Pay (TTP) Update

German government announces comprehensive €130 billion stimulus package to reverse economic damage from COVID-19 pandemic

On 3 June 2020, the committee of the German coalition government agreed a €130 billion fiscal stimulus package to mitigate the economic damage created by the coronavirus pandemic. With almost 60 cross-sector measures announced, these latest measures represent the largest economic stimulus package in the history of the Federal Republic of Germany.

Tax policy considerations in dealing with COVID-19 impacts

Alongside public health and economic measures, governments have been activating in-country tax relief measures to reduce or delay taxpayers’ tax liabilities and administrative burdens as a result of the COVID-19 pandemic. Tax authorities have been providing guidance and taxpayers have been deciding, where relief measures are not automatically applied, whether and how to avail themselves of such measures in appropriate situations.

US - IRS FAQs address NOL carrybacks to AMT tax years

The IRS recently posted to its Coronavirus Tax Relief and Economic Impact Payments website frequently asked questions (FAQs) providing guidance for C corporations planning to file Form 1120X, Amended U.S. Corporation Income Tax Return, or Form 1139, Corporation Application for Tentative Refund, on or after June 1, 2020, to carry back net operating losses (NOLs) to years in which the alternative minimum tax (AMT) applies.

US - House passes ‘Phase Four’ economic disruption relief bill

The House recently voted 208 to 199 to pass a $3 trillion ‘Phase Four’ COVID-19 relief bill that would provide additional economic assistance to individuals and businesses. While the Congressional Budget Office has not yet released an estimate of the budgetary cost of the entire legislation, the House Democratic bill includes nearly $1 trillion for state and local governments that have been impacted by the economic effects of the pandemic and over $1 trillion in tax reductions, partly offset by tax increases.

US - IRS provides travel disruption guidance on foreign branch DCL issues; Form 8858 filing

The IRS recently issued Revenue Procedure 2020-30, providing guidance with respect to certain foreign branch issues raised by the COVID-19 pandemic. Rev. Proc. 2020-30 excludes certain ‘temporary activities’ from (1) resulting in an obligation to file a Form 8858 and (2) giving rise to a foreign branch separate unit for purposes of the Section 1503(d) dual consolidated loss (DCL) rules.

European Commission reviewed work programme for 2020 - impact of COVID-19 and expectations for direct and indirect taxes

The first annual work programme of the new European Commission was published in January. The COVID-19 crisis has led to a general reassessment of the program, but the Commission is not expected to delay its most important tax-related projects. Initiatives on ‘Fighting tax evasion’ and ‘Business taxation for the 21st century’ are strategic priorities.

Financial crime in the era of COVID-19: Protection for businesses

According to PwC’s Global Economic Crime Survey 2020, over half of UK businesses reported an incident of fraud, corruption or other economic crime in the last two years. This is the highest rate recorded in the Survey and indicates an upward trend in sophisticated fraud. Should the impact of COVID-19 align with previous unprecedented events (for example the 2008 financial crisis) we can expect to see an increase in financial crime as fraudsters look to exploit areas of weakness. In this article we look at the types of financial crime that may arise during the COVID-19 pandemic and what businesses can do to minimise risk and protect itself accordingly.

New Zealand - Further economic support for businesses affected by COVID-19 - urgent legislation enacted

As businesses continue to grapple with the economic implications of the COVID-19 pandemic, the New Zealand Government has enacted urgent legislation to provide further economic support through a number of tax changes contained in the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (the Act). The Act gives effect to a number of tax changes which were previously announced by the Government on 15 April.

Personal tax residence and COVID-19

An individual’s personal residence position for UK tax purposes in a given tax year is generally determined by a combination of the number of days they spend in the UK and their links with the UK. A key tax risk area that individuals are facing due to the current global COVID-19 pandemic is that international travel has been heavily restricted and individuals could end up spending longer in the UK than they had anticipated. Visitors are therefore at risk of becoming unexpectedly UK tax resident, and hence taxable in the UK, through no fault of their own and without having made appropriate plans ahead of time.

Funding your R&D - understanding how external funding interacts with R&D tax incentives

On 20 April, HM Treasury launched a billion-pound support package for innovative firms impacted by Coronavirus. Whether companies are investing in new R&D projects or focused on just surviving in the current climate, this new package is aimed at ensuring Britain remains a global leader in innovation, now and in the future. Our Innovation & Capital Incentives team supports SMEs and large businesses claiming R&D tax incentives, helping them ensure their claims are optimised. The key thing is making sure that your business knows what funding it is eligible for and accessing it.

COVID-19 and corporate taxable presence

Often a company’s tax position will be heavily linked to where it is managed from and where its employees are located. This can drive both the tax residence of the company as well as the question of whether it has a taxable permanent establishment in a second territory. With global travel at a virtual standstill, and typical ways of working massively disrupted, the current environment has the potential to create significant risks in this area.

Japan's tax measures for businesses to mitigate the economic impact of COVID-19

A package of emergency fiscal measures to mitigate the economic impact of Covid-19 (“Emergency Measures”) was recently approved by the Japanese Cabinet. The package includes special tax measures for businesses, such as reductions to fixed asset and property taxes, the deferral of tax payments and social security premiums, and exemptions from National Pension Insurance and National Health Insurance premium payments.

United States: Delay of tax filings and payments is welcome relief for mobile workers, but states may not align

The IRS has expanded favorable guidance regarding the delay of filing US federal individual income tax and related returns, as well as certain tax payments – welcome news for mobile workers who may be present in an unexpected location due to the health crisis. To assist mobility professionals, the table presented in this Insight is intended to provide a short-hand reference tool, coupled with some practical tips to consider.

US CARES Act permits NOL carrybacks, increases interest deduction limitation

Tax relief measures for businesses in the ‘Coronavirus Aid, Relief, and Economic Security Act’ (the CARES Act) include a five-year net operating loss (NOL) carryback (including a related technical correction to the 2017 ‘Tax Cuts and Jobs Act’ (the TCJA)) and a change in Section 163(j) interest deduction limitations. These measures give businesses greater ability and flexibility to use NOLs and interest deductions to offset their taxable income, providing them with liquidity and a reduced cost of capital as they grapple with the economic effects of the pandemic.

US: Using tentative refund procedures to access cash from estimated tax overpayment, new NOL carryback

The recently enacted Coronavirus Aid, Relief, and Economic Security Act (CARES Act), includes a net operating loss (NOL) carryback provision allowing an NOL from tax years beginning in 2018, 2019, or 2020 to be carried back five years. The provision temporarily removes the current-law taxable income limitation and allows an NOL to fully offset income. The provision also makes a retroactive correction to the 2017 tax reform legislation to allow NOLs arising in a fiscal tax year beginning in 2017 and ending in 2018 to be carried back two years.

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.

United States: New ‘2020 recovery rebates’ may create inequities 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.

Singapore: CPF treatment for the reimbursement of expenses

The Central Provident Fund (CPF) Board has announced that CPF is not required on the reimbursement of expenses incurred by employees for working in different locations (i.e., not the normal place of work) due to COVID-19 and such expenses are used to defray meal, transport, lodging, or utility expenses subject to meeting certain conditions.

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.

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.

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.