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ATO Taxation Determination Provides a Creditor Must be a Natural Person to Forgive a Debt for Reasons of Natural Love and Affection

|Approved Changes|Australia
Australia

The Australian Taxation Office (ATO) has issued Taxation Determination TD 2022/1 - Income tax: commercial debt forgiveness - does the exclusion for debts forgiven for reasons of natural love and affection require that the creditor be a natural person? TD 2022/1 states that a creditor must be a natural person to forgive a debt for reasons of natural love and affection. It is also noted that thi…

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