Forgiveness of distressed debt in Europe

Tax treatment in the hands of the creditor

If a creditor waives an intra-group receivable, this leads to an accounting loss in the amount of the receivable. Such loss, however, is not automatically tax-deductible in the hands of the creditor.

Filed under:
Germany, Insolvency & Restructuring, Tax, Bird & Bird LLP, Share (finance), Shareholder, Debtor, Security (finance), Waiver, Accounts receivable, Taxable income, Debt, Liability (financial accounting), Tax deduction, Fair market value, Distressed securities, Bénéfice, GAAP
Authors:
Arnoud Knijnenburg , Pieter Camps
Location:
Germany
Firm:
Bird & Bird LLP
Forgiveness of distressed debt in Europe

Tax treatment in the hands of the creditor

Filed under:
Netherlands, Insolvency & Restructuring, Tax, Bird & Bird LLP, Tax exemption, Bankruptcy, Shareholder, Debtor, Dividends, Waiver, Accounts receivable, Taxable income, Debt, Tax deduction, Holding company, Distressed securities
Authors:
Arnoud Knijnenburg , Pieter Camps
Location:
Netherlands
Firm:
Bird & Bird LLP