Why is a ‘force majeure’ that allows tax deferrals relevant during the virus outbreak?
Ankara recently deferred tax payments for some businesses due to “force majeure" as part of its initiative to soften the blow of the coronavirus on the economy. Force majeure is a legal term that refers to an unforeseen “superior force,” in this case the coronavirus, that interrupts someone’s ability to fulfill legal or financial obligations.
Duvar English
Allowing some businesses tax deferrals due to “force majeure" was Ankara’s latest precaution to shield the economy from the blow of the worldwide coronavirus pandemic.
Force majeure, or “superior force” in plain English, is a law term that refers to extraordinary and unforeseeable circumstances (such as a war, natural disaster, or labor strike) that impair an individual or institution from fulfilling their contractual duties and undertakings, hence relieving them from legal or financial responsibility.
The term can also be used for temporary impairments, such as in the case of coronavirus, and can include many extraordinary events.
Natural disasters like earthquakes, floods and hurricanes can count as force majeure, as well as social situations like a widespread riot or strike.