Tax Consequences of Debt Remission 2026 (live webinar)

Times are tough.  Recovering debts is getting harder. The number of companies and trusts that are not able to repay or recover debts in contemplation of wind up is on the increase.

A borrower can be released from their obligations under a debt through the lender electing to write off or remit the debt or through the operation of law. This will ordinarily give rise to taxable debt remission income under the financial arrangement rules.

Alternatively, a debt write off may either trigger a dividend or there may be no tax consequences if undertaken in the right way. 

This course will consider the tax implications of writing-off debts including:

• When the financial arrangement debt remission rules do and don’t apply
• The requirement to undertake a base price adjustment
• Relief available for remission of debt without triggering taxable income
• The availability of deductions for the lender.

Upon satisfactory completion of this course, you will be able to:

• apply the debt remission rules
• work through how the relief rules may be applied
• assist parties to a debt/ financial arrangement to plan for an inability to recover or repay debts.

This course will be suited to people who are involved in assisting clients with debt levels including intermediate level accounts and senior accountants and any lawyers providing advice in this area particularly given current financial pressures.

Duration: 1.00 CPD hours (approx. 55 mins content + 5 mins Q&A)

PRESENTER

Nola Crafar, Senior Manager Findex/Crowe
Nola is the senior manager for Findex in the Dunedin tax team. She has been with Findex for over 15 years where she advises on a wide range of tax matters including trust disclosures, trust distributions and classification, relationship property considerations, and debt remission/capitalisation implications. She also assists other advisory firms and manages Inland Revenue Department queries. Nola's contact number is 021663855