Struggling small firms should be allowed to 'borrow back' 2019 tax payments, offset current losses against profits through 2024 and gain a trove of fast-track tax deductions, according to a team of PwC tax consultants. "The situation is so serious, and the threats so large," said Nicola Quinn, tax partner at PwC Cork. :: A "borrow back tax" scheme would let companies borrow up to a quarter of their 2019 tax payments. These allowances - currently available only for certain energy-efficiency purchases - would promote home working, aid SMEs' cash flow and drive sales to trading partners. While forbearance measures on tax payments were helping to preserve their cash, he said, many SMEs now need "cash injections" even more.

Source: Irish Independent July 07, 2020 01:40 UTC