KPMG Turkey Partner, Tax
İ.Halil Bağdınlı joined to KPMG Izmir office in 2008 as Sworn Tax Advisor. İ.Halil Bağdınlı started his career at Ministry of Finance in 1993 as an Assistant Revenue Controller. In 1996 he qualified as a Revenue Controller and finally in 2003 qualified to head of Revenue Controllers. He has been extensively involved in tax investigations of companies.
His numeroustax articlespublishedin periodic newsletters and booklets such as Dunya, Referans, Gozlem newspaper Capital, Yaklaşım, EBSO haber, Vergi Sorunları Magazines. He also led more than 20 tax seminars to professionals in addition to numerous presentations in national symposiums and panels. He has extensive experience especially on manufacturing, software, other servicesand commercial companies.
Presentation Summary
After a 100-year hiatus, a new pandemic has caused a serious contraction in business life all over the world, which will take many years to compensate. The pandemic, which carries many unknowns for the business world, brought up the discussion of new business models. While there is already a serious acceleration in technology, the developments in technology have started to become inconceivable with the Pandemic. During the pandemic, which has occupied our agenda for more than a year, serious studies have been undertaken focusing on how the economy will adapt to this unusual situation. In a period when factories, offices, restaurants were closed, sports and art events were canceled and business life had to deal with many problems from supply chain to production, employment of blue and white collar workers and financing issues. Although the problems experienced during the pandemic process differ from country to country, the main problem is similar for all. There are different estimates for the economic recovery after this process, ranging from 3 months to 12 months and more. Recovery will differ on the basis of sectors and companies, however the organizations that enter this period prepared, make the right decisions and adapt to the “new normal" will emerge in the best way. (Ercin, Serkan, 2020)
The pandemic will not only have negative effects on companies, but also on people for many years to come. Especially the millennials and low-income groups who also experienced the 2008 crisis, feel the effects of the socioeconomic collapse more clearly because they work in the sectors that were most affected by the shutdown during the pandemic. In this process, while the lifestyles and spending habits of the masses changed, it seems likely that people with debt and low wages will experience the effects of the pandemic for a long time. While the decline in the sales of the companies, access to finance and liquidity problems continue, exports have been more negatively affected impacted by Covid-19 in comparison to domestic sales. While the high impact rate in exports was 44%, this rate in domestic sales was 42%. One out of every four people who participated in the research expects a decrease of more than 20 percent in their 2020 turnover. (Covid-19’da hasar tespit dönemi, 2020)
The ongoing increase in logistics and raw material prices is expected to continue until the end of the year. However, we hope that by 2022, the new normal will be felt more clearly and we will see normalizations in these prices. It is likely that the search for alternative manufacturers to China during the pandemic will create serious opportunities, especially for Turkey. However, in this process, access to finance in developing countries will be more difficult than ever and especially many businesses with financial problems will be negatively affected. The markets, which have been under the influence of negative news for more than a year and looking for a way out, have finally started discussing the post-pandemic period. In this exit process, it is clear that the most important factor not only for developing countries but also for developed countries will be the new working environment.
As companies exit lockdown and move into the new reality, they can choose to create exceptional workplaces — special cultures boasting a clear and shared sense of purpose and skilled people whose talents are celebrated and fully enabled. (Bolton, Robert, 2020) In this process, technological transformations in industries will continue to be one of the main items on the agenda.
References
Bolton, Robert. (2020, 9). The Road to the New Reality. Retrieved from kpmg.com: https://home.kpmg/xx/en/home/insights/2020/09/adopting-a-workforce-wide-digital-mind-set-and-culture.html
Covid-19’da hasar tespit dönemi. (2020, June 25). Retrieved from kpmg.com: https://home.kpmg/tr/tr/home/medya/press-releases/2020/06/covid19da-hasar-tespit-donemi.html
Ercin, Serkan. (2020, June 24). İş dünyası gözünden COVID-19'un etkileri anketi Vol-2. Retrieved from https://home.kpmg/tr/tr/home/gorusler/2020/06/is-dunyasi-gozunden-covid-etkileri-vol2.html
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