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

Suited to:

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

Stephen Richards, Technical Director, Findex

Stephen Richards is the National Technical Director of Tax Advisory for Findex, the largest accounting firm in
New Zealand specialising in the SME/HNWI space.

Stephen has been practicing in tax advisory for 20 years and is a sought-after speaker on tax topics, including
for CCH and TEO Training courses.

Stephen is renowned for making complex topics understandable.