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 [...]