Debt forgiveness and debt write offs
|CPD Hours:||Attendance at this seminar will secure 2 hour/s verifiable CPD points including other professional bodies (SAICA, SAIBA, ACCA, IACSA, IRBA & etc)|
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 overview of the options that are available to all parties involved in the lending of money. It is designed to help consultants provide advice to clients. This will focus on: • A short discussion on debt vs equity • The difference in treatment between “revenue” debt and capital • Tax consequences of debt while things are going well. • Tax consequences when debts become doubtful • Tax consequences when debts go bad The primary focus is the income tax consequences of these stages of debt 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 • Understand when s11(i) can be claimed • Understand the s11(j) doubtful debts allowance • Be able to determine the CGT consequences for the holder • 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
A general understanding of Income Tax and Financial Management would be helpful.