Miscellaneous 2008

Debt forgiveness

Source: Victoria

Published Date: 27 Feb 2008


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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?

Individual Session

Debt forgiveness

Author(s): Noel Beharis CTA
Materials from this session:


  • Published By: Noel Beharis CTA
  • Published On:27 Feb 2008
  • Took place at:Leonda by the Yarra, Hawthorn

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Miscellaneous 2008

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