"Loan waivers", The Bulletin (October 2014)

Alexandra Hui, Tax Executive Director at Mazars, shares some technical thought on loan waivers with the readers of The Bulletin magazine.

"Loan waivers might trigger an unexpected tax burden for the borrower and loss of tax deduction relief for the lender"

In this article, Alexandra Hui addresses the following topics:

  • Common misperceptions 
  • Relevant provisions in the Ordinance:
    • Gains on loan waivers to the borrowers
    • Losses on loan waivers to the lenders
  • The IRD's view on gains on waivers to the borrowers clarified
  • Tax deductibility in the lender's perspective
  • Remarks

To read the full article pp 32-34 (available in English and Cantonese), please click here .