This is the first in a series of Tax News Highlights articles covering international taxes and what companies need to consider during and after the current global pandemic.
Preparing for disruption – whether the disruption is from competitors, new products, new markets, trade sanctions, or technology allowing for as yet unidentified entrants into the market – is nothing new. However, very few expected a worldwide pandemic to create the almost instant and massive disruption currently affecting the global economy. Small and large businesses shut down overnight. Supply chains have been severed. Many people are stuck in their homes as they practice social distancing. Others are stranded in foreign countries unable to return home due to travel restrictions.
While many concerns compete for attention in this time of crisis, businesses need to develop plans to stay viable, for both the short term and the long term. Short-term objectives focus on managing and preserving cash, but businesses also must focus on maintaining customer or client relationships and preserving vendor relations to support the value chain. Navigating the current crisis is only the beginning. In the longer term, businesses will need to anticipate what the new normal will be as they work to restart their supply chain as quickly as possible.