From a global perspective, Sidley’s tax lawyers can thoughtfully and knowledgeably help clients consider the tax implications of the changing business and legal environment resulting from the COVID-19 pandemic, including the following areas:
- Impact of changes in tax law included as part of stimulus packages
- Tax consequences associated with modifications or cancellations of contractual obligations
- Tax consequences of debt modifications and exchanges or other capital restructurings, and of debt forbearance (including on REMICs and other securitization vehicles)
- Extent to which the requirement to work from home or travel restrictions expose businesses to taxation in jurisdictions in which they have not previously been subject to tax
- Income sourcing issues arising from remote and work-from-home arrangements
- Tax consequences of providing loans to employees, shareholders, suppliers or others who are cash-strapped
We are ready to team with you, your other advisers and our Sidley colleagues to counsel and assist you on appropriate tax planning considerations associated with alternative strategic responses to the known and unknown consequences of the pandemic.