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Courses/Accounting & Tax/Corporate Tax

Tax Consequences of Debt Remission

Explore the nuances of debt remission, including financial arrangement rules, Inland Revenue perspectives, and tax planning mechanisms.

Created byTEO Training
BeginnerUpdated Jan 19, 2025
Tax Consequences of Debt Remission

What You'll Learn

check_circleUnderstand the details and nuances of the Tax Act’s treatment of debt remission.
check_circleArticulate Inland Revenue’s views on debt remission and “facilitation” payments.
check_circleDescribe potential mechanisms to plan debt remission to minimize tax.
check_circleGain clarity on self-remission rules for LTCs and partnerships.

About This Course

A debtor may be released from their obligations under a debt through the creditor electing to write off or remit a debt or through the operation of law.

This will usually trigger the creation of 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 remission 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

 

Suitable for:Tax-aware intermediate-level accountants and more senior accountants.

Your Instructors

TEO Training
TEO Training
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star214 reviews

TEO Training provides practical learning experiences on primarily tax-related topics for accountants, lawyers and business advisors across New Zealand.

Jim Gordon
Jim Gordon

Director, Jim Gordon Tax Ltd

Jim Gordon FCA started preparing farm accounts in 1974. He has been involved with almost all of the primary sector tax reforms since 1986. Jim brings a wide range of both theoretical and practical experience to his presentations.

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