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. However, there are circumstances where a debt can be written off without triggering income.
In other cases, the write off will result in a dividend rather than income under the financial arrangement rules.
This course will consider the tax implications of writing off debt including
- When the dividend rules apply rather than the financial arrangement rules
- 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
The webinar will be presented with a rural flavour, including reference to the impact of the Farm Debt Mediation Rules.
Upon satisfactory completion of this activity you will be able to:
- Identify when a dividend arises rather than debt remission income
- Complete base price adjustment calculations
- Apply the self-remission and economic group exclusions from debt remission income
- Determine whether a deduction is available to the creditor
Total CPD Hours: 1.25 (incl. 15 min Q&A)
Accountants and lawyers wanting to understand the tax implications of writing off and remitting debts.
Tony Marshall, Partner – Tax Advisory, Findex
Tony is an experienced tax advisor and presenter with over 18 years’ experience in advising businesses in
New Zealand on all aspects of taxation.
Tony has presented numerous seminar series and webinars on a variety of tax issues including primary sector tax
issues, FIF’s, LTC’s, Taxation of Land, Associated Persons, Mixed Use assets.
Tony is a member of the CAANZ Rural Advisory Committee and is a regular submitter on tax policy that affects the
- 10 September 2020
10:00 am - 11:15 am