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  • D – Debt waiver

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    If an employee is in debt to you and you release the employee from the obligation to repay the debt, the unpaid amount is a debt waiver fringe benefit. Show the amount of this kind of benefit at item D.

    A debt owed by an employee that you write off as a genuine bad debt is not a debt waiver fringe benefit.

    Example 13: Taxable value of debt waiver fringe benefit

    You waive a $500 debt (including principal and interest) that an employee owed you from a previous year.

    You would write at item 23:

    Example 13: Taxable value of debt waiver fringe benefit

    End of example
    Last modified: 22 Mar 2017QC 51524