Shah Peerally Law Forum is a FREE SERVICE offered to the entire immigrant community from Shah Peerally Law Group PC. Anybody can be a member of this forum – you do not need to be a client to be a member. If you have any question feel free to call us at: 510-742-5887 or send us an email at: [email protected]

Sign Up to Post on this forum

Disclaimer: We take no responsibility for accuracy of information provided , please use at your own risk. Note: Please do not post any negative comments or remarks about any person or organization. Do not post personal information details. Courts and government agencies can require us to disclose your email, IP address. etc.


No announcement yet.

Debt remission changes get green light

  • Filter
  • Time
  • Show
Clear All
new posts

  • Debt remission changes get green light

    Credit to: Tax Avoidance News : Debt remission changes get green light

    Revenue Minister Todd McClay announced today that Cabinet has given its approval to a set of proposals intended to address the current inequitable situation where debt remission between related parties can, under certain circumstances, result in an incorrect taxation outcome.

    At present, in cases when such debt is forgiven by the creditor, and no longer has to be repaid, it becomes taxable income for the debtor. However, because the arrangement is between related parties, the creditor does not receive a tax deduction for the bad loan.

    “This will result in over-taxation in some situations and can affect mum and dad partnerships right through to corporate groups” says Mr McClay.

    The main proposal is that there should be no debt remission income for the debtor when the debtor is in the New Zealand tax base. This would include controlled foreign companies and New Zealand subsidiaries of foreign companies.
    Your thoughts guys?

Latest Post