Professional practices, like many businesses, have reacted to the downturn caused by the coronavirus and national lockdown by seeking financial assistance, deferring tax and implementing cost-saving measures, such as furloughing employees. Many partners have accepted both a reduction in monthly drawings and suspended partner profit distributions.
Unless the economic impact of the pandemic crisis abates, further measures such as the claw-back of awarded but unpaid discretionary bonuses and de-equitization of equity partners will be imposed.
