Debt waivers – the tax knock-on effect
|CPD Hours:||Attendance at this seminar will secure 1.5 hour/s verifiable CPD points including other professional bodies (SAICA, SAIBA, ACCA, IACSA, IRBA & etc)|
The write-off of debts has become more common than what creditors would prefer, as the economy and circumstances often do not allow for any other option. Before considering whether to follow through on such an arrangement, one must first confirm the possible tax effects of this debt waiver, which might not be as beneficial as the write-off itself. This course aims to equip you with the knowledge to make an informed decision going forward.
This session will cover the following: • What constitutes a debt benefit, concession and compromise • The tax implications of a debt waiver on the creditor and debtor • Tax implications from an income tax and capital gains tax perspective • The impact that interest on and structure of financing arrangements might have on debt waivers • The impact on donations taxes • Administrative provisions for the tax return
All taxpayers, tax professionals, accountants and auditors that may encounter these transactions would benefit from this course.