This paper provides an analysis of the main tax issues affecting your clients in a distressed market including:
- tax losses of companies in administration or liquidation
- sales by lenders enforcing security interests
- commercial debt forgiveness
- interest payments after the business has ceased
- other issues for the borrowers
- capitalised interest, suspended interest and non-accrual loans
- doubtful and bad debts
- restructures and the market value substitution rules
- other issues for the lender.