The spread of the ravaging coronavirus pandemic had caused severe disruption in the business circles in Nigeria and the world at large. Some of these disruptive impacts in the area of Finance, Tax and Regulatory Considerations were highlighted in an report titled, “Covid-19-A Business
Impact Series:Financial, Tax and Regulatory Considerations to Manage COVID-19 Disruptions,” published by KPMG Nigeria.
The report highlights various issues that provides a helpful starting point for thinking through a business’ situation during this challenging time.
Among the issues raised, is the impact of disruptions of business cash flows, as debtors may delay payment or become insolvent. It then becomes necessary to provide emergency funding to service business commitments. Businesses can also consider obtaining a tax deduction for debt incurred during the crisis.
Another major issue is the maintenance of strong daily oversight of compliance deadline which will be disrupted as a result of the pandemic. A pertinent question raised is, how will the business maintain company secretarial and general governance obligations in a partially or wholly remote working environment? However, businesses and companies can consider putting in place strategies to enable appropriate oversight and supervision.
The article also emphasizes the implications for employees working from home and working from a jurisdiction outside their work country. It then behoves the employer to look into and address issues relating to staff health, safety, compensation, work permits amongst others. Also, as the pandemic may limit physical contacts, businesses must start to think about virtual meeting for directors and board members who may likely be unable to attend due to travel ban or movement restrictions. However, the organisation needs to consider the possibility of using virtual meetings which needs to be in agreement with the Stock Exchange regulations.
The report also spoke to the disruption in the supply chain of various organisations, businesses can think of switching suppliers or their selling platforms. Companies can also strategize on the quantity, quality and type of products which are bought and sold, without necessarily incurring additional cost.
The report is the second in the Business Impact Series during this pandemic. Another useful document that Nigerian businesses can use to make informed decisions at this period include the KPMG’s Coronavirus (COVID-19) Tax
Developments.
