Thought Leadership

Many business owners (private sector, public sector and public listed) have traditionally owned their real estate. These typically include factory operations coupled with offices and warehouses. While, in some cases, the real estate may have become non-core, in other cases such real estate is essential for the business operations. 

Arising from the need to social distance to mitigate the spread of COVID-19, the question that arises in the minds of many will be the state of the co-working industry in a possible new epoch. 

One of the greatest uncertainties we face today surrounds the trade-off between minimizing the human cost from the coronavirus and restarting the economy.  Much of the world economy remains shut down, and consequently, economic distress arising from the coronavirus crisis has been pervasive.  And rightfully, governments around the world have announced an unprecedented program of stimulus, support, rescue and regulatory relief in response to the economic impact of the effort to combat the pandemic.
 

Business Trusts may invest in a number of Holding companies/ SPVs and it is likely that there may be surplus funds available in one Holding company/ SPV which can be productively lent to another Holding company/ SPV.  Considering provisions of Section 2(22)(e), such loans may have adverse tax implications.  Provisions of Section 2(22)(e) do not apply to a listed company or its subsidiary.  Since units of a Business Trust shall be listed and the Holding company/ SPV is its subsidiary, exemption from Section 2(22)(e) should be available to such Holding companies/ SPVs as they are available to a listed company or its subsidiary.