Ireland has experienced unprecedented economic disruption as a result of the Covid-19 pandemic. It was expected that the pandemic would lead to an increase in the number of corporate insolvencies. However, to date, this increase has not materialised – the number of corporate insolvencies during the first six months of 2021 was actually 38% lower than the corresponding 2020 figure. The downward trend in the number of corporate insolvencies is partly due to the fact that companies’ cash-flow positions are being subsidised by the Government Covid-19 support measures and forbearance arrangements with their banks. This level of support is unsustainable. Once Government supports and lender forbearance cease, it is inevitable that some companies will face insolvency.
To continue reading...
Members, students and subscribers of the Irish Tax Institute can login using your username and password.
For information on subscribing please contact info@taxinstitute.ie