The impact of the pandemic may necessitate a financial restructuring of a company’s liabilities. Paul Pritchard (FTI Consulting) provides a practical guide to the tax issues surrounding deemed release rules.
The global pandemic has had an unprecedented impact on businesses. For some the pandemic has stressed their financial position such that a restructuring is necessary. This may involve reducing debt liabilities through releases equity injections to pay down debt and/or easing the debt burden through changes to terms of borrowings.
Other approaches may involve the rights to the debt and so this article discusses the deemed release rules.
All statutory references in this article are to CTA 2009 unless otherwise stated.
Deemed releases
The actual release of a debt liability is just one way to manage a debtor’s indebtedness in financial distress. It is not uncommon that a creditor may have legal and commercial constraints such...
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The impact of the pandemic may necessitate a financial restructuring of a company’s liabilities. Paul Pritchard (FTI Consulting) provides a practical guide to the tax issues surrounding deemed release rules.
The global pandemic has had an unprecedented impact on businesses. For some the pandemic has stressed their financial position such that a restructuring is necessary. This may involve reducing debt liabilities through releases equity injections to pay down debt and/or easing the debt burden through changes to terms of borrowings.
Other approaches may involve the rights to the debt and so this article discusses the deemed release rules.
All statutory references in this article are to CTA 2009 unless otherwise stated.
Deemed releases
The actual release of a debt liability is just one way to manage a debtor’s indebtedness in financial distress. It is not uncommon that a creditor may have legal and commercial constraints such...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
