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What are the tax implications of Debt Restructuring?

What are the tax implications of Debt Restructuring? In my previous article “Dealing with debt in your Business” I discussed 3 options for dealing with debt in your business. In this article we look at one of the tax implications that may result from restructuring debt. Changing the terms and conditions of debts may have unintended tax implications. Tax payers that find themselves in financial distress should thus be aware of the consequences debt restructuring could result in. One of these consequences is “Recoupment under Section 8(4)(a)” If you sell an asset on which you have claimed wear & tear, the [...]

What are the tax implications of Debt Restructuring?2020-09-01T17:24:21+02:00

Dealing with debt in your Business

Dealing with debt in your business As the majority of businesses return to normal operations, many will return to face a burden of accumulated debt as a result of restricted trading. The latest studies have confirmed the impact of COVID-19 resulting in a devastating debt burden for South Africans. The debt holiday offered by the banks in late March 2020 had added R20.7 billion to the debt of the estimate 1.6 million South Africans who took advantage of this. Credit bureau TransUnion reported that by August, 21% of those surveyed reported losing their jobs as a result of the pandemic; and [...]

Dealing with debt in your Business2020-08-24T14:28:55+02:00