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  • D – Debt waiver

    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