Emerging trends and developments have brought sweeping changes to the sales and use tax landscape. In recent years, economic nexus legislations, following the South Dakota vs. Wayfair decision, have continuously affected corporations from various states. Adding to the challenges are the impacts brought by COVID-19, which include cash flow and state obligation issues. In response, new rules for deferral reliefs on sales and use tax filing and payment have now been laid down.
The FINRA arbitration and enforcement landscape has been continuously reshaped with rule changes as well as complications due to Covid-19 restrictions and the resulting change to remote work. Thus, all affected professionals must keep themselves abreast of the emerging updates in this space.
Important regulatory changes continue to reshape the investment funds and Qualified Opportunity Zones (QOZ) programs. On January 19, 2021, the Internal Revenue Services (IRS) issued Notice 2021-10, which provides new extensions and deadlines for filing QOZ investments.
Emerging developments have brought sweeping changes to the regulatory landscape of Foreign Investment Risk Review Modernization Act (FIRRMA) of 2018 and Committee on Foreign Investment in the United States (CFIUS). Recently, FIRRMA extended the scope of CFIUS review on covered transactions – a move which calls for a closer watch on foreign investments, export controls, and national security. Moreover, CFIUS also released its final regulations for mandatory filing process and requirements creating additional issues and challenges for all concerned practitioners.
Tax automation is not necessarily a new topic for global manufacturers. Over the years, many businesses within this sector have adopted scalable and affordable technology solutions enabling significantly improved accuracy in determination, filing and remittance.
The COVID-19 pandemic has brought an immense economic toll on businesses across the globe. Specifically, it prompted a spike in the number of lost profit damages lawsuits as businesses seek to recover lost profits because of pandemic-related damages. However, although there are various damage calculation theories available, pandemic-related lost profit claims can be taxing and challenging. Thus, businesses and their counsel must always exercise diligence in documenting their revenues and profits. They must also be abreast of emerging regulatory developments to avoid pitfalls.
The anti-money laundering (AML) due diligence and compliance landscape continue to heighten with the passing of the Anti-Money Laundering Act of 2020 (AMLA). The AMLA, which is regarded as the most crucial AML legislation to date, was designed to modernize the anti-money laundering policy in the U.S. It also aims to strengthen the current financial system, improve government coordination, and streamline AML compliance obligations.
As COVID-19’s economic impact continues to generate shock waves among financial institutions, incorporating solutions that would ease banking activities is vital. Consequently, intelligent process automation (IPA), which enables businesses to create digital platforms and faster end-to-end processes, is currently gaining popularity. This momentum is brought by IPA’s benefits that expand from saving time and reducing costs to avoiding physical interaction between clients and employees.
The continuous disruptions brought by the COVID-19 outbreak have significantly impacted the Foreign Corrupt Practices Act (FCPA) enforcement and compliance matters. To address the risks brought by the pandemic, the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have been continuously working hand in hand in providing updated guidelines for companies to ensure compliance with FCPA.
The economic downturn brought by the COVID-19 pandemic has profoundly impacted the transfer pricing landscape. Multinational enterprises (MNEs) are dealing with serious transfer prices issues, supply chain disruptions, and restructuring expenses. In response to these growing repercussions, the Organization for Economic Co-operation and Development (OECD) recently published guidance on transfer pricing policies and clarified the application of the arm’s length principle. It also underscored the compliance challenges faced by MNEs.
The rise of e-commerce in recent years had significantly helped businesses to gain better customer engagement and, thus, improve bottom lines. However, along with the surge of business opportunities on the internet, is the influx of criminals selling fake products and standing up brand infringing sites used for stealing credentials and propagating scams.
In response to the economic challenges brought by the COVID-19 crisis to the executive compensation landscape, significant enforcement actions from the Securities and Exchange Commission (SEC) and International Shareholders Services (ISS) concerning design, implementation, and disclosure are expected to bring complexities to businesses.
With today’s major economic recession faced by businesses due to the ongoing COVID-19 crisis, the Employee Stock Ownership Plans (ESOPs) continues to be an attractive option for companies seeking to address the need for succession planning to sustain competitive advantage in the market and looking to provide their employees with an ownership interest through a retirement plan.
The global transfer pricing landscape has been in flux over the past years. Key factors driving change include intensified enforcement by tax authorities, changes to international tax rules, new case law, the impact of digitalization in the economy, and the COVID-19 crisis. With all these complexities and challenges, it is imperative for multinational enterprises (MNEs) and their counsel to be acquainted with the legal updates and governing compliance principles in this area of law to ensure sound compliance and abate potential exposure to legal risks.
In response to the uncertainties brought by the COVID-19 crisis, congress had passed several economic relief opportunities for distressed companies significantly impacted by the pandemic. However, along with these opportunities are heightened levels of scrutiny and enforcement efforts from the government to root out potential fraud under the False Claims Act (FCA) against companies taking advantage of these funds.
