In light of the ongoing COVID-19 crisis, the government has recently announced a slew of tax and regulatory relief measures to provide a compliance breather to businesses. However, businesses still need to remain vigilant to minimise the possible impact of COVID-19 on their people and operations.
Here’s how you can HALT and proactively review your direct tax action plan:
Tax payments
- Proactively evaluate how you will make pay necessary taxes given your current cash flow situation
Direct tax disputes
- Take stock of pending disputes and decide whether or not to opt for the Vivad se Vishwas Scheme
Extended stay
- Reassess your tax liabilities in different jurisdictions due to unforeseen travel restrictions, unplanned stays and change in residential status for employees and key personnel
Overseas operations
- Stay updated on tax relief measures announced in overseas jurisdictions to assess tax liabilities
Disruption of normal business
- Tax implications due to borrowing of funds from Indian/ overseas group entities
Investments
- Valuations at which any investment/ disinvestment or hive offs are made to be carefully evaluated
Compliances
- Evaluate compliances required to be undertaken in the next 2-3 months and make necessary arrangements
Relief measures
- Track relief measures announced by the Central/ State governments as well as tax implications arising out of relief provided under other laws
