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Tax issues when Forgiving Debts Webinar

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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

A Live Instructor Led Webinar

When economic conditions become more challenging, it's common for debts to be forgiven and practitioners will often be called upon to provide advice in this area.

This Tax issues when forgiving debts 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. We look 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.

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AU $195 members
AU $235 non-members

Register Me

Register Team*

AU $520 members
AU $595 non-members

Register Team*
Total 1.25 CPD Hours

Date & Details

Thursday, 25 September 2025

Time
12:00pm - 1:15pm AEST (NSW, VIC, QLD, ACT, TAS)
11:30am SA & NT
10:00am WA

 

*Office Registrations. Maximum 10 participants per firm (must have same email domain). The PD points for all attendees will be recognised and links will be provided to all attendees.

What we cover

This practical webinar covers:

What's included?

  • 1 x 1.25 hour (est.) webinar
  • 3 month access to webinar recording
  • Reference notes
  • 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

Our presenter

Tax Director, Knowledge Shop

Michael Carruthers

Michael CarruthersMichael is an adviser, author, in demand presenter, mentor to Knowledge Shop’s technical team, and is well known for his capacity to translate highly technical information into tangible and useable advice for the profession. He has a knack for seeing through the complexity and helping advisers work through highly technical issues with certainty and accuracy.

Michael works with advisers every day to help them negotiate and implement the constant tide of change impacting the industry.

He was a member of the advisory panel for the Board of Taxation, a member of the reference group for the Board’s review of small business concessions, and an expert panel member for the Board’s review of tax impediments facing small business.

Terms & Conditions
Each education service purchase is for your use only and accessible through your individual account. Each live online education service will be provided with a unique session ID to join which cannot be disclosed, forwarded, or distributed to any other individual without Knowledge Shop Pty Ltd's written consent. No other individual will be authorised to access your education service unless that individual has purchased the education service and a unique session ID has been provided to that individual. In the event of unauthorised access due to the actions of the intended recipient, Knowledge Shop Pty Ltd may suspend or cancel the access for the intended recipient any additional individual(s) may be held liable for additional fees associated with the unauthorised access to an education service. Knowledge Shop Pty Ltd reserves the right to charge any unauthorised individual(s) who access your education service. In the unlikely situation that a live education service is cancelled we will refund you the full cost of your purchase. If a live service is postponed, we will provide written notification to you and reschedule the education service. Your original ticket will be valid for the rescheduled date. We will also provide the recording and associated materials if you are unable to attend the education service live at the new date/time. If you are unable to attend the education service live at the new date/time, you may request a refund of the moneys paid by contacting Knowledge Shop Pty Ltd directly, with all requests to be considered on a case by case basis by Knowledge Shop Pty Ltd in its absolute discretion.

The General Terms and Conditions can be accessed here.