If the same debt is forgiven at different times, only the first forgiveness is treated as a dividend.
In example 2, assume that Maxine does not seek to recover the debt. Time passes and Maxine's recovery of the debt becomes barred under a statute of limitations.
The debt is treated as forgiven at the time the debt parking arrangement is entered into in the 2005-06 income year. The debt is also forgiven when recovery subsequently becomes statute barred. Only the first debt forgiveness is treated as a dividend.