Times are extraordinarily tough for businesses at the moment, with many companies looking to restructure their debts and balance sheets. Businesses are needing help when evaluating what happens to the debt, both from an issuer and holder’s point of view.

The aim of this course is to provide an insight into the tax consequences of debt write offs. It is designed to help consultants provide advice to clients. This will focus on: • Tax consequences when debts go bad The primary focus is the income tax consequences to the issuer and will cover the following sections: • Understand what is meant by “debt compromise resulting in a debt benefit” • Understand the consequences of such a debt compromise • Understand which exemptions are available • A review of the administrative requirements of s19 and para 12A. • Understand how the relationship between the holder and issuer can impact the tax consequences.

Investment managers Financial managers Auditors Bookkeepers Financial accountants Fifth year SAICA trainees Audit managers Audit partners