Our Tax Partner Steve Youn, CPA, CA has shared some of his expertise on debt-related topics with the Chartered Professional Accountants of British Columbia (CPABC) for publication in their CPABC InFocus magazine, March/April 2021 edition. Read below an excerpt of the article:

“The recent economic downturn may bring forth unexpected tax issues. As creditors become more inclined to forgive or settle debt without full or even partial repayment, more corporations may find that they are settling
debt for less than the principal amount. While this may initially seem like a favourable result for debtor corporations, there are tax implications that must be considered. Specifically, debtor corporations need to consider
the impact of the debt forgiveness rules so they can plan accordingly.”

How We Can Help
If you are facing issues in regard to debt forgiveness rules, do not hesitate to contact your DMCL advisor and schedule a consultation. We look forward to answering all your questions and working together to find suitable solutions.