Published on 27 Feb 08
by VICTORIAN DIVISION, THE TAX INSTITUTE
This paper addresses the following tax issues:
- what debts are caught by the commercial debt forgiveness rules?
- what happens if an unpaid trust entitlement is forgiven?
- what needs to happen for a debt to be "forgiven"?
- will a debt be forgiven if it is merely written off in the accounts?
- are the commercial debt forgiveness rules really a problem?
- the interaction of Division 7A and debt forgiveness
- what happens if a company forgives a loan previously caught by Division 7A?
- the dangers in forgiving debts owed to trusts and companies which have made family trust and interposed entity elections
- when is a debt forgiveness assessable as income?
- can a capital loss be claimed in respect of a forgiven loan?
- what are the dangers of assigning loan accounts?
Current at 18 January 2012
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