Writing Off Loans 20 – Tax implications of debt remission (Webinar)

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

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)


Suited to:
Accountants and lawyers wanting to understand the tax implications of writing off and remitting debts.



Ryan Watt, Associate Partner – Tax Advisory, Findex/Crowe

Ryan has a wide range of clients from privately owned New Zealand companies to multinational groups,
to whom he provides a broad spectrum of tax, mergers and acquisitions, and transaction services advice.

Ryan specialises in providing advice on international tax, mergers and acquisitions/transaction services,
corporate tax matters, property tax, trans-Tasman tax and agriculture (including aquaculture).


  • 10 September 2020
    10:00 am - 11:15 am

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