Publikation
UK: Infrastructure and greening the built environment tops government agenda
In the wake of COVID-19 there has been a slowdown in the economy.
What are the risks to the global economy and state aid?
COVID-19 presents an enormous challenge for the global economy. Governments are responding with interest rate cuts and quantitative easing programs on a scale not seen since the 2008 financial crisis. The response has also seen the introduction of measures designed to ease the burden for business, with deferrals for tax payments and emergency loan funding schemes introduced in a number of jurisdictions.
In the UK, a number of measures designed to support small business were already on the cards. These have been extended at Spring Budget in response to COVID-19 with business rates reliefs, a Coronavirus Business Interruption Loan Scheme and a £2.2bn grant scheme for small businesses. A dedicated HMRC COVID-19 helpline has been established for individuals and businesses seeking support.
The EU’s state aid framework enables Member States to take action to support individuals and businesses facing economic difficulties. Tax holidays, suspension of payments of corporate and value-added taxes or Social Security contributions or payments of wage subsidies are being introduced in a number of jurisdictions. The framework also allows support to be granted to consumers, for example, in respect of cancelled services which are not otherwise reimbursed or to help companies with urgent liquidity shortages. As the scale and severity of the situation worsens, the Commission is able to approve additional national economic support measures which would, ordinarily, have contravened state aid rules.
The travel restrictions introduced in response to COVID-19 are also raising issues for individual and corporate tax residency. Individuals will hope that local rules allow them to disregard days of presence beyond their control. Company directors may not physically be able to attend board meetings. As boards move to hold virtual meetings, companies, in particular those which are resident for tax purposes outside their jurisdiction of incorporation, will face challenges to maintain central management and control in the intended jurisdiction. There have been indications in some jurisdictions that temporary adjustments to normal operating practices introduced in response to COVID-19 may be disregarded but, with risks of exit charges and of becoming subject to a less favorable tax regime if tax residency moves, many corporates may consider delegating responsibilities or try to gain greater assurance from authorities.
Latest insights
Update
UK: Construction sites and COVID-19
COVID-19 is having far reaching impacts on the construction industry’s supply chains, cash flows and workforces.
Publikation
US: Paycheck Protection Flexibility Act
The Paycheck Protection Program Flexibility Act of 2020 has been passed and signed into law.
Publikation
UK: Government introduces series of loan schemes: Key features for borrowers
UK: Bounce Back Loan Scheme (BBLS)/Coronavirus Business Interruption Loan Scheme (CBILS)/ Coronavirus Large Business Interruption Loan Scheme (CLBILS) – A Comparative Table of Key Features for Borrowers
Publikation
UK: Future Fund: A (liquidity) problem solved?
The launch of the Future Fund marks the UK Government’s response to ongoing concerns that high growth businesses within certain sectors (for example, technology and life sciences) affected by COVID-19 may be unable to access other UK Government business support programmes because they are at pre-revenue or pre-profit stage in their development.
Publikation
US: The US updates Municipal Liquidity Facility guidance
The Federal Reserve System has updated its FAQs and the Municipal Liquidity Facility's term sheet.
Publikation
Global: The COVID-19 crisis: EU Competition Policy response
In response to the COVID-19 crisis, European Union (EU) President Ursula von der Leyen has formed a team led by eight Commissioners to coordinate the EU response.
Publikation
Global: EU relaxes antitrust restrictions in the food and agriculture sectors
On May 4, 2020, the European Union (EU) announced a package of measures to support the food and agriculture sector and mitigate the effects of the COVID-19 outbreak, including relaxing some antitrust rules on cooperation.
Publikation
Mexico: ISO prevents wind and solar projects from reaching commercial operation
The Mexican ISO, CENACE, has suspended all pre-operative tests for wind and solar power plants to preserve the safety and reliability during the COVID-19 pandemic.
Publikation
US: Federal Reserve expands/extends Municipal Liquidity Facility
The US Federal Reserve Board released a revised term sheet for its recently established Municipal Liquidity Facility and answers to FAQs.
Publikation
US: Treasury announces pre-forgiveness audit of PPP loans over $2 million, further eligibility restrictions on private companies
The Small Business Administration will audit all PPP loans over $2 million before providing any loan forgiveness to these borrowers.
Publikation
UK: Raising finance in challenging markets: Key considerations for corporates
The COVID-19 pandemic raises a range of issues for companies in all sectors, including the ability to access the finance necessary to maintain business operations during these challenging times.
Publikation
US: Senator Marco Rubio announces investigation of small business Paycheck Protection Program recipients
Rubio announced that the Senate Committee on Small Business and Entrepreneurship will conduct aggressive oversight of the PPP.
Publikation
UK: Vulnerability: Time to reassess
Both the PRA and the FCA have issued several communications to firms in recent weeks.
Publikation
US: Detecting and prosecuting tax fraud under the CARES Act
As the US continues its efforts to control the COVID-19 pandemic, the government has taken steps to provide immediate financial relief for taxpayers.
Publikation
US: Federal Reserve releases additional funding to bolster US economy
The Federal Reserve announced a series of additional programs to provide liquidity to financial institutions and loans to support the US economy.
Publikation
UK: COVID 19: FCA announces measures to assist listed companies in raising new share capital
On April 8, 2020 the Financial Conduct Authority (FCA) announced a package of measures intended to assist companies to raise new share capital in response to the coronavirus crisis, whilst retaining an appropriate degree of investor protection.
Publikation
Singapore: COVID-19 (Temporary Measures) Act 2020 introduced
The Singapore government has introduced the COVID-19 (Temporary Measures) Act 2020 (the COVID-19 Act) with the objective of:
Publikation
Mexico: COVID-19 Update: Further clarification on the scope of ‘Essential activities’
As part of the continued efforts of the Mexican government to address and mitigate the impact of the COVID-19 outbreak, and further to resolutions relevant to the subject matter that have been issued just recently (particularly the resolution issued on March 31, 2020), on April 6, the Mexican Ministry of Health issued a new resolution seeking to elaborate and provide further clarification on the scope of “essential activities” that are allowed and encouraged to continue during the ongoing pandemic.
Update
UK: European Central Bank announces Pandemic Emergency Purchase Programme
In a further response to the COVID-19 (coronavirus) crisis, the European Central Bank (ECB) has launched a €750 billion Pandemic Emergency Purchase Programme (PEPP).
Publikation
UK: Bank of England launches Covid Corporate Financing facility
HM Treasury and the Bank of England have provided further operational details and pro forma documentation in relation to the Covid Corporate Financing Facility (CCFF).
Publikation
US: The COVID-19 pandemic and the economic stimulus program for businesses
The COVID-19 pandemic has prompted US lawmakers to act by passing a historic economic stimulus program for businesses.
Publikation
US: Congress CARES about municipal securities
The CARES Act authorizes $500 billion in loans, loan guarantees, and other investments.
Publikation
Luxembourg: Implementation of the 5th AML Directive
New entities falling in scope, additional risk factors and stricter enhanced due diligence measures involving high-risk jurisdictions are some of the changes introduced by the law of March 25, 2020 partly transposing into Luxembourg law the Directive 2018/843 of May 30, 2018 (the “5th AML Directive”) and certain requirements of the Financial Action Task Force (FATF) Recommendations.
Publikation
US: Tax relief measures of the Coronavirus Aid, Relief and Economic Security Act
The CARES Act contains a number of tax provisions intended to provide relief for individuals, families, and businesses facing the COVID-19 pandemic.
Publikation
(UPDATE) US: Small business loan options under the CARES Act
To manage the economic impacts of the COVID-19 pandemic, the US government has enacted new legislation to provide emergency funding for businesses.
Publikation
US: Extended SEC filing deadline relief covers Form 20-F filers
The SEC issued an order that provides a publicly traded company 45 more days to file disclosure reports
Update
UK: Business leases: suspension of the right to forfeit for non-payment of rent
The Coronavirus Act 2020 is a piece of emergency legislation to give the government powers to contain the spread of COVID-19, including powers to issue directions in relation to events, gatherings and premises. It had its first reading on March 19, 2020 and received Royal Assent on March 25, 2020.
Update
UK: COVID-19 issues for pension scheme trustees
The COVID-19 (coronavirus) pandemic is constantly evolving, with the Government’s advice being updated daily.
Update
Italy: COVID-19: The Italian Government and ABI to support SMEs
As a consequence of the epidemiological emergency caused by COVID-19 (coronavirus), the Italian Government and the Italian Banking Association (ABI) have approved a number of measures to support micro, small- and medium-sized companies (SMEs) (as defined by the European Commission Recommendation No. 2003/361/EC of May 6, 2003 ), facing the economic impact of COVID-19.
Publikation
Making sense of US travel restrictions in light of COVID-19
In the context of the global outbreak of COVID-19 many American citizens and green card holders are wondering how and if they can travel back to the US.
Webinar
US: State of the Union: COVID-19 now
Our team will discuss latest COVID-19 news and best practices.
Update
UK: Budget 2020: How will proposals reintroducing crown preference affect businesses amid COVID-19?
Will the effect of the proposals in the Budget be to support businesses in a difficult trading period?
Subscribe and stay up to date with the latest legal news, information and events...