Managing unintended tax consequences

As physical board meeting is unlikely to be held during this period, the determination of corporate tax residency needs to be re-assessed.Residency is often determined by exercising management and control (determined through directors’ meetings).

THE Covid-19 situation affects everyone. Lockdown and travel restrictions implemented by many countries, including Malaysia, impact the mobility of personnel immensely. Unintended tax consequences are imminent.

Further ramifications may arise if those tax issues are not dealt with. Consider this real case – Anthony, formerly a Malaysian, holds a passport of country X, which has a tax treaty with Malaysia.