Income tax 2018

Restructures, turnarounds and insolvency

Source: The Tax Specialist Journal Article

Published Date: 1 Jun 2018


The basic income tax issues associated with debt restructures or compromises are well known. More complicated are the income tax issues that arise where this is occurring in the context of an external administration, ie where an administrator, a receiver or a liquidator has been appointed. This article will cover current issues in restructures, turnarounds and insolvency, including a number of recent transactions as practical examples. The issues covered will also include an overview of the main forms of external administration, receivership and liquidation, and the key concerns from a professional administrator's perspective. This article examines the key tax issues for borrowers and creditors, including debt restructures and forgiveness, the impact of administration and receivership, including deeds of company arrangement, tax obligations under external administration, priority of creditors and the ATO's ability to collect tax and common traps.

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Income tax 2018

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