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Tax issues when forgiving debts

Recorded live 25 Sep 2025
Tax concepts

$213.64 +GST

Audience

This training is recommended for all:

  • Accountants working in public practice
  • All practitioners working with tax
Audience

Learning outcomes

On completion, participants will be able to:

  • Explain when creditors can claim bad debt deductions and the steps that need to be taken
  • Explore the common issues for a lender when forgiving loans and claiming capital losses
  • Understanding when a forgiven debt can become assessable to the borrower
  • Navigate the complex commercial debt forgiveness rules and identify how these rules impact the borrower
  • Identify the applicable Division 7A and FBT provisions applying when shareholders and employees are involved
Learning outcomes

Relevancy

This webinar was presented live 25/09/2025.

Relevancy

CPD hours

If claiming CPD hours, this course provides 1.25 Legislated CPD hours, the breakdown is as follows:

  • Tax (financial) advice: 1.25 CPD hours
CPD hours

Navigating the tax rules for both parties when debts are forgiven 

When the lender can claim deductions or a capital loss 

Step-by-step guide to managing the tax issues for the borrower 

Navigating Division 7A, FBT and GST issues 

When economic conditions become more challenging, it is increasingly common for debts to be forgiven and practitioners will often be called upon to provide advice in this area.  This essential webinar navigates the tax rules for both the lender and the borrower when debts are waived or forgiven or are left outstanding for an extended period of time. 

Clients who have waived or forgiven debts owed by other parties normally assume that they can claim a tax deduction or capital loss, but this isn’t always the case. The Forgiving Debts webinar looks at the conditions that need to be satisfied for the creditor to access tax relief for the genuine economic loss that they have suffered. 

From the borrower’s perspective, we look at when a forgiven debt needs to be included in assessable income and the complex tax implications that can potentially arise under the commercial debt forgiveness rules. 

There are often other tax consequences that need to be considered when debts are being waived or forgiven.  We look at when GST adjustments arise, Division 7A issues on shareholder loans and FBT issues on employee loans. 

What we cover:

  • When creditors can claim bad debt deductions and the steps that need to be taken 
  • Exploring the common issues for a lender when forgiving loans and claiming capital losses 
  • Tax consequences when writing off an unpaid trust distribution 
  • Understanding when a forgiven debt can become assessable to the borrower 
  • Navigating the complex commercial debt forgiveness rules and how these rules impact the borrower 
  • Working through the Division 7A and FBT provisions when shareholders and employees are involved 
  • How to deal with the GST adjustments for both parties

 

Registration includes:

  • 1.25 hour (est.) on-demand event
  • 3 month access to Q&A embedded webinar recording
  • Reference notes
Michael Carruthers round

Presented by

Michael Carruthers
Tax Director
Knowledge Shop

This webinar is presented by our partners at Knowledge Shop.

Terms and Conditions
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