Skip to main content
Perspective:
Perspective
06 Apr 2020
5 minute read

Financing and treasury: Tax and legal matters

Addressing the impact of COVID-19

Explore the actions and considerations that may be in focus for tax, treasury and legal teams, as businesses navigate financial planning and business recovery in the current environment.

Addressing the impact of COVID-19 – Financing and Treasury: Tax and Legal Matters | Placemat
1002 KB PDF

COVID-19 tax and legal department considerations for global treasury teams

 

As the global response to COVID-19 has sent shockwaves through the economy, business leaders are seeking to rapidly assess the level of disruption. In this current timeframe, it is essential to review and identify business, tax and legal priorities that can safeguard your organisation.

Given the importance of cash flow to the business, treasury teams are quickly evaluating cash management, financing and risk management to help manage corporate cash positions as a result of the disruption caused by the pandemic. While business-critical areas will rightly demand the most focus, tax considerations and legal implementation can have a significant impact on the outcomes of actions that treasury teams take. To help you act decisively in this current business climate, our team of tax, treasury and legal specialists, have outlined some key considerations and practical steps to think about in the immediate future.

To learn more download: Addressing the impact of COVID-19 – Financing and treasury: Tax and legal matters 

                                                                                                                                                           

Actionable steps you can take today

 

  • Tax and treasury should connect to understand the tax and financial accounting impact of short-term and medium-term planning for repatriation, borrowing and cash, liquidity, and risk management during this time.
  • Tax, treasury and legal, should coordinate on implementing any new financial and derivative transactions because certain tax documentation, legal documentation, elections and, claims may need to be made upon the execution of such transactions (e.g. hedging transactions).
  • Tax, treasury and legal, should coordinate to address tax implications of any modifications to existing debt instruments or similar agreements ideally prior to making such modifications and, once a decision to modify has been made, make the required amendments to the legal documents.
  • Tax and transfer pricing analysis should be performed related to existing financial instruments, even if modifications are not contemplated.
  • Overall, tax should consider reviewing expected profit and loss profiles across jurisdictions, assessing the implications in each for, e.g., loss utilisation and interest deductibility and, assessing actions that can be taken to remove inefficiencies.

Managing your COVID-19 tax and legal response with clarity, confidence and insight

 

Deloitte’s global tax and legal professionals will work with you to help you manage the disruption to the business and identify immediate business, tax and legal priorities. During this volatile time, having a framework for reviewing the current financing and treasury strategy is critical. Deloitte believes that this framework allows companies to balance long-term planning with short-term demands for survival and future growth with resilience.

For more information on the impacts of COVID-19 and important considerations for your financing and treasury department, please contact the specialists below.

                                                                                                                                                                      Back to top

Addressing the impact of COVID-19 – Financing and treasury: Tax and legal matters

Download the placement

Get in Touch

Mo Malhotra

Deloitte - United Kingdom
Mo is an international tax and transfer pricing partner. He provides advice to multinationals to ensure that their acquisitions and disposals, restructurings, domestic and cross border financing, intellectual property considerations, transfer pricing, and tax compliance happen efficiently and effectively. As part of this, Mo regularly leads a global network partners on complex projects for clients. He has an advisory and disputes focused practice, and has gained significant experience in negotiating tax clearances and transfer pricing agreements with taxation authorities, as well as working with taxpayers in the contemplation of litigation. Mo’s experiences have exposed him to a vast range of tax work, and he is known for combining his technical expertise with an understanding of a client’s commercials to deliver practical and implementable advice. Mo is a member of the Institute of Chartered Accountants in England and Wales, and the Chartered Institute of Taxation.
View Profile

Rachel Hossack

Deloitte - United Kingdom
Rachel is a Corporate lawyer and has worked in multi-disciplinary teams on cross-border reorganisations, typically along-side Tax and Accounting colleagues, for the whole of her career. Advising clients, generally, on group reorganisations, including cross-border mergers, European Companies (Societas Europaea), supply chain and other business transformation projects, intra-group share and business/asset sales, distributions and dividends, loan rationalisations/assignments, capital reductions and other technical Corporate law matters.
View Profile

Chris Hardman

Deloitte - United Kingdom
Chris is a corporate partner with extensive experience of cross-border and UK M&A, joint ventures, group reorganisations and intra-group financing arrangements. His clients include national and multinational corporates, financial sponsors, management teams and high net worth individuals. Chris has deep experience in delivering legal services in a multi-disciplinary model environment and works closely with our legal managed services and consultancy businesses in shaping and delivering technology-enabled solutions to improve our clients’ legal operations. Prior to joining Deloitte Chris worked at two international top 20 law firms and most recently played a pivotal role in the development of the legal business of another Big Four consultancy.
View Profile

Did you find this useful?

Yes
No

Thanks for your feedback

If you would like to help improve Deloitte.com further, please complete a 3-minute survey

Your feedback is important to us

To tell us what you think, please update your settings to accept analytics and performance cookies.

Need help updating cookies?

Recommendations

Global Tax Reform | Deloitte

Learn more about the three action steps you can take to help you prepare for tax reform
Perspectives