Debt Benefits

Question 1

s19(2) - This section applies where (4)

Answer 1

1. Debt owed by a person
2. used to fund deductible expenditure.
3. That debt gives rise to a debt benefit
4. as a result of concession/compromise

alternative ordering:
1. Where a debt benefit
2. in respect of a debt owed by a person
3. arises as a result of concession/compromise.
4 And the debt was used to fund deductible or specific allowable expenditure.

Question 2

Concession/compromise

Answer 2

Any arrangement:

a) debt is
- cancelled/waived or
- extinguished by way of redemption or merger
b) debt owed by a company is settled directly/indirectly by
- converting debt to shares/exchange debt for shares
- use the debt to subscribe to shares in the company

Question 3

Amount of debt benefit: cancelled/waived

Answer 3

amount cancelled/waived

Question 4

Amount of debt benefit: extinguished by redemption/merger

Answer 4

Face value of debt (before arrangement)

less [expenditure to redeem debt/ acquire claim]

Question 5

Amount of debt benefit: company acquiring shares - held no interest

Answer 5

Face value of debt (before arrangement)

less [MV of shares acquired]

Question 6

Amount of debt benefit: company acquiring shares - held an interest

Answer 6

Face value of debt (before arrangement)

less [ MV shares after - MV shares before]