Revenue have published an eBrief to clarify the CAT treatment of debt restructuring, debt forgiveness or write-off arrangements.

In eBrief No. 12/13 Revenue clarify that “where for bona fide commercial reasons, a financial institution enters into a debt restructuring, forgiveness or write-off arrangement with a customer, their approach, subject to being satisfied as to the bona fides of the arrangement is that the financial institution is not intent on making a gift of any sort to the mortgagor/debtor and accordingly the mortgagor/debtor would not be subject to a CAT charge in respect of any such debt restructuring, forgiveness or write-off arrangement”

Further information is set out in eBrief No. 12/13 which is available on the Revenue website.