Commercial Debt Forgiveness & Debt: Equity
The commercial debt forgiveness rules and the debt: equity provisions are often overlooked, but frequently apply to many common transactions.
Mar 22Thu 1:00 PM AEDT - Thu 2:30 PM AEDT Online
- $220.00 incl. GST
- PD hours: 1.5
This webinar covers two important aspects of tax law that are often overlooked in practice:
• the commercial debt forgiveness rules; and
• the debt: equity provisions.
This session provides practical guidance on the operation of the commercial debt forgiveness rules, covering the nature of a ‘commercial debt’ for tax purposes. It also highlights the ways in which commercial debts may be ‘forgiven’, along with the calculation of ‘forgiven amounts’ by reference to worked examples.
The impact of ‘forgiven amounts’ on the tax balances of the debtor is also covered in practical examples. The exclusions from the operation of the commercial debt forgiveness provisions are also highlighted, along with practical tips on how to address commercial debt forgiveness issues.
Webinar Learning Outcomes:
This session includes guidance on the practical relevance of the debt: equity provisions and how particular arrangements give rise to either a debt interest or an equity interest. It covers how to determine, with accuracy, whether an interest is a ‘debt interest’ or an ‘equity interest’. The impact of the ‘tiebreaker’ test that applies to interests that pass both the debt and equity tests is also covered, along with:
• the impact of the ‘connected entity’ rules
• the ‘related scheme’ rules
• how non-share equity interests and non-share capital accounts are handled
• the small business turnover carve-out for at-call loans between connected entities
• the interaction with the thin capitalisation provisions
Accounting, taxation and legal professionals at all levels that require a practical understanding of the commercial debt forgiveness rules and the debt: equity provisions.
Crowe Horwath is the largest provider of practical accounting, audit, tax, business and financial advice to individuals and businesses from a network of over 80 offices throughout the country.
The firm’s team of 300 Principals (approx.) and professionals deliver a full range of accounting including, audit and taxation, business advisory, corporate finance and wealth management services from offices in the cities of Sydney, Melbourne, Brisbane, Canberra, Perth, Auckland, Wellington and major regional centers in Australia and New Zealand.
You will be provided with:
• PowerPoint presentation slide deck
• Supporting documentation
• Webinar Recording to view multiple times for up to 6 months
• An opportunity to ask the presenter questions
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