News articles written by Nancy De Beule

COVID-19 #12 Corporate simplification: transitioning into a cost-efficient, substance-based and sustainable corporate structure

30 April 2020

The current economic context highlights the need for multinational groups to realise savings, optimise cash movements within the group, rationalise management structures and/or reorganise their supply chain. Globalisation and also single sourcing of products (often only from China) made companies vulnerable for a disruption of their supply chain as has happened with many by this

COVID-19 #11 Group contribution for companies in temporary financial distress

28 April 2020

As the effects of the current crisis reverberate throughout the global economy, it is obvious that not every business or geography has been hit equally. The same holds true for companies within a group – and even for business units within a company. Absent a tax loss carry-back system in Belgian tax law (except for

COVID-19 #10 Cash tax forecasting

21 April 2020

The current pandemic not only puts great pressure on our healthcare system, it is also paralysing the economy. As businesses are suffering, cash flow management has become a top priority in many organisations. In this respect, cash tax forecasting can support groups in optimising their available cash. Item #10: Cash tax forecasting At macroeconomic level,

COVID-19 #9 Factoring in times of corona

10 April 2020

In these turbulent times, issues with unpaid invoices or late payment may not only cause valuable time to be spent on accounts receivable management, but equally cause working capital levels to skyrocket. In order to mitigate the financial impediment of no (or late) payment and to alleviate their financial departments from additional administration, taxpayers may

COVID-19 #8 Sale of non-core or distressed businesses

7 April 2020

Successfully raising cash through the divestment of non-core assets or businesses requires careful consideration, especially in a situation of financial distress. Although from a sell-side perspective a share deal is often preferred (click here), sellers may still be tempted to engage in an asset deal in their quest to realise the best possible outcome. Various

COVID-19 #7 Carve-out and sale of non-core or distressed businesses

3 April 2020

In the current climate, it is expected that companies in a wide variety of industries will be confronted with a significant drop in sales volumes, possibly causing faltering cashflow positions or even cash crunches. Although the Belgian government, in concertation with financial institutions, are trying to stem the bleeding with short term measures, such as

COVID-19 #6 Cash repatriation – capital reduction

31 March 2020

Next to dividend distributions and (early) repayment of intercompany loans, a group may also consider a capital reduction to repatriate cash to the upper tier structure. Whereas a reduction of fiscally paid-up capital is in principle tax neutral between corporates, it may still have some (unexpected) tax consequences. Item #6: A capital reduction is not

COVID-19 #5 Cash repatriation

27 March 2020

Although various listed groups have already announced to refrain from distributing dividends to their shareholders, centralising cash within the group is likely marked as a high priority item on every corporate agenda. Multinational groups may currently be revisiting their cash repatriation policy / advancing dividend distributions to get ahead trapped cash issues – e.g. arising