Debt restructuring

Tax queries 259 views 3 replies

The company is having loan from foreign directors and also accumulated losses. Can they be set off against each other? What are the implications with respect to Companies Act, Income Tax Act?

Replies (3)
No. Can't be set off against each other. And why are you concerned in setting off these amounts?
The company has an understanding with the directors that the foreign directors shall pay for the losses. Hence, I am asking for such set off. Is there any alternative remedy for the company.
Then it's better to issue shares to directors rather than loan.


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