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Courses/Accounting & Tax/Corporate Tax

Tax Consequences of Debt Remission

Learn how to manage debt remission and write-offs effectively, minimizing tax implications for creditors and debtors.

Created byTEO Training
BeginnerUpdated Jan 20, 2025
Tax Consequences of Debt Remission

What You'll Learn

check_circleUnderstand the application of debt remission rules.
check_circleDetermine how the relief rules may apply in specific cases.
check_circleAssist parties involved in a debt/financial arrangement to plan debt remission effectively to minimize tax.
check_circleAssess the availability of tax deductions for creditors in debt write-off scenarios.

About This Course

In times of financial difficulty, discussions about the inability to recover debts and the available options are becoming more frequent.

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 typically triggers debt remission income under the financial arrangement rules. Alternatively, a debt write-off may trigger a dividend, or there may be no tax consequences.

This course will consider the tax implications of writing off debt, including:

  • When the financial arrangement debt remission rules apply and when they don’t
  • The self-remission rules for LTCs and partnerships
  • The economic group remission rule
  • The requirement to undertake a base price adjustment
  • The availability of deductions for the creditor

 

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

Your Instructors

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

Nola  Crafar
Nola Crafar

Senior Manager at Findex/Crowe

Nola is a Senior Manager for Findex in the Dunedin Tax Team. Nola has been with Findex for over 15 years, where she advises on a wide range of tax matters, including property transactions and property ownership structures, structuring opportunities for businesses including relationship property considerations, providing advice on the tax treatment of transactions for clients and other professional advisory firms and managing Inland Revenue Department queries, disputes and debt relief applications.

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