ARTESLEX has advised the international company on certain aspects of taxation of the debt forgiveness transactions.
The situation arose because of entering by the client into the loan agreement, under which the client had received the loan from the foreign company. At the same time, the client and the creditor preliminary decided to conclude the debt forgiveness agreement, pursuant to which the client’s debt under the abovementioned loan agreement shall be written off.
Therefore, we were applied to with a request for provision of respective legal advice on the tax effects, related to the mentioned debt forgiveness transaction, as well on peculiarities of financial statements of the client.
During provision of the mentioned services, particular attention has been paid to practical application of the Ukrainian legislation governing such matters, with the aim of possible risk minimization. In addition, comprehensive analysis of court practice has been made against the possibility of potential tax dispute, as well as monitoring of the registered legislative drafts has been performed.
28.07.2022
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