Weekly Tax Tips
Seek Tax Advice Before Settling Debts
16 Jul 2009
If you settle a commercial obligation (basically, a debt where the interest is deductible for tax purposes) for less than its face amount, adverse tax consequences can arise for the debtor. Also, similar problems can arise where debt is transferred to a related party. Therefore, you should seek specific tax advice before a debt is settled or transferred.
This tax tip is a publication of BDO Dunwoody LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of 16 Jul 2009.
More Tax Tips Here!
Learn more about our Taxation Services
