Acute crisis: What needs to be done?

In an acute crisis, action must be taken much more decisively and immediately than in a program aimed at increasing earnings where there is in fact no existential need.

As long as your company is not yet insolvent, you can arrange tax deferrals with the tax office through your tax advisor, which will preserve your liquidity. In many countries, for example, you can apply for a deferral of VAT if it is not yet due for payment. The managing director is personally liable for the timely payment of income or corporate tax. Failure to pay income tax is usually considered gross negligence.

Specially in an acute crisis, you must also create trust with suppliers so that they continue to supply you. However, it is very important that you do not make any binding statements to creditors about your company’s solvency in an acute crisis. If your company were to become insolvent, you would be personally liable for damages that could be traced back to your statement. Instruct your entire team in writing to refrain from making such statements.

In an acute crisis, immediate measures should be the focus of attention. In the event of insolvency, separate legal regulations apply.

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