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)
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