Debt Forgiveness. Could it be taxed as a gift?
The Revenue Commissioners have issued an e-brief providing some guidance on how it will treat debt forgiveness by financial institutions for Capital Acquisition Tax purposes.
It is a timely reminder of the broad scope of taxation and the tax consequences that need to be considered when negotiating with creditors. Tax is a key consideration that should always be considered in any transaction to ensure that all everyone is aware of the tax consequences of any arrangement that they enter into and can afford and budget for the tax that may arise.
A link to the e-brief is attached here Revenue link to e-brief No.12/13
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The material in this article is for general information purposes only and does not constitute legal or taxation advice. Specific legal and taxation advice should be sought before acting. All information and taxation rules are subject to change without notice.
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