Deep Pockets Need To Return Paycheck Protection Money
There has been an uproar about some of the companies that have taken the money and now we have new guidance from the ever growing FAQ on the Treasury website. In a few years we may be reading a lot about FAQ 31 litigation as not everyone will attend to or be intimidated by the latest guidance. Here is it in full.
“Question: Do businesses owned by large companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?
Paycheck Protection Program Gets Big Boost
There is still no clarification on whether you will be able to deduct payments that are made with loan proceeds that are forgiven. We still don’t know what happens if you have not spent all the money by June 30. And maybe it would be good if there was more of an idea about how uncertain we need to be in order to qualify. For example, should a company with a large stash of cash be allowed in before they spend their rainy day fund?
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.