When can shareholders also have employee status?
United Kingdom, Employment & Labor, Insolvency & Restructuring, Litigation, Bird & Bird LLP, Share (finance), Shareholder, Employment contract, National Insurance, Liquidation, Unfair dismissal, Employment Rights Act 1996 (UK), Court of Appeal of England & Wales
The UK generally distinguishes between “loan relationship” debts (e.g. loan receivables) and other debts (e.g. trading debt in respect of outstanding consideration for the sale of goods or services). It is possible to turn a trading debt into a loan relationship by issue of a debenture in respect of it.
Tax treatment in the hands of the creditor
United Kingdom, Insolvency & Restructuring, Tax, Bird & Bird LLP, Share (finance), Credit (finance), Debtor, Waiver, Accounts receivable, Interest, Accounting, Swap (finance), Consideration, Debt, Withholding tax, Liquidation, Tax deduction, Distressed securities, Debenture, HM Revenue and Customs (UK)
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.
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