A debtor may be released from their obligations under a debt through the creditor electing to write-off or remit the debt or through the operation of law. This will usually trigger debt remission income under the financial arrangement rules. Alternatively, a debt write-off may trigger a dividend, or there may not be any tax consequences.

This course will consider the tax implications of writing off debt including:

• When the financial arrangement debt remissions rules don’t apply
• The requirement to undertake a base price adjustment
• The self-remission rules for LTCs and partnerships
• The economic group remission rule
• The availability of deductions for the creditor

Upon satisfactory completion of this course you will be able to:

• appreciate the detail and nuances of the Tax Act’s treatment of debt remission
• articulate Inland Revenue’s views on debt remission and “facilitation” payments
• describe potential mechanisms to plan debt remission to minimise tax.

Suited to: Tax aware intermediate level accountants and more senior accountants.

1.25 CPD hours incl. 15 min Q&A

PRESENTER

Jim Gordon, Director, Jim Gordon Tax Ltd

Jim Gordon FCA started BAS accounting in 1974.  He has been involved in a significant number of tax reforms since 1986, including being responsible for the recent intra-group debt remission legislation.  Jim brings a wide range of both theoretical and practical experience to his presentations.