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105759
Individual Podcasts

Debt Forgiveness - It Can be Cruel to be Kind

Whilst the act of forgiving a debt may relieve all obligations between the borrowing parties, it is not always the end of the story. Before moving on, the income tax implications may require a close look to determine the impact. This session looks into the issues, including: Wh

Date/Time

About the Podcast

Whilst the act of forgiving a debt may relieve all obligations between the borrowing parties, it is not always the end of the story. Before moving on, the income tax implications may require a close look to determine the impact. This session looks into the issues, including:

  • When is a debt a “commercial debt” and why it matters?
  • The interaction of the debt forgiveness rules and Division 7A
  • How the “natural love and affection” exclusion applies in various situations (TD 2022/1)
  • In what situations can the Commissioner’s discretion be exercised to not treat debt forgiveness as a dividend?
  • The future tax impact on retained earnings and franking credits after a shareholder forgives a loan owed by a company
  • Can converting a debt to equity trigger the commercial debt forgiveness rules?
  • Case study

Presented By

Mark Molesworth
Partner, BDO Brisbane, QLD

Mark is a partner with chartered accounting firm BDO’s tax division. He has more than 20 years’ experience in advising taxpayers with respect to all areas of taxation including CGT, FBT, and income tax.

Some of his areas of speciality include international tax, the small business CGT concessions, the debt/equity provisions and the trust loss provisions.

He also provides taxation advice to other smaller accounting and legal practices in respect of their clients.

Mark has Bachelor of Commerce and Bachelor of Laws degrees from the University of Queensland and is a Chartered Accountant and Chartered Tax Adviser.

CPD Information

0.3 CPD hours

Enquiries/Assistance

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