Donald Trump’s tax lawyers at Willkie Farr & Gallagher signaled their doubt about a tax maneuver he used in regards to canceled casino debt when they wrote a tax opinion letter in 1991, according to a published report.The lawyers warned there was no specific statute, regulation or judicial opinion that permitted Trump’s tax maneuver, and said “substantial uncertainties exist” with respect to its consequences, the New York Times reports.Tax experts interviewed by the Times also expressed doubts, saying Trump earned tax benefits for losing other people’s money, pushing the envelope of what was permitted at the time.Trump’s Atlantic City casinos were financed mostly by high-interest junk bonds, and the bondholders were forced to forgive hundreds of millions of dollars in debt after the casinos filed for bankruptcy.Canceled debt is usually considered taxable income, which would have offset the $916 million loss Trump reported on his 1995 tax returns, … [Read more...] about Trump swapped partnership equity for canceled debt in tax-law stretch, experts say
Cancellation of debt insolvency worksheet
Note: Register for this month’s CLE, “Current Developments in Tax Law,” from 1-2 p.m. ET on Wednesday, Nov. 18.Despite recent murmurs that the recession may be easing its grip on the United States, debt continues to sap the financial strength of millions of families and businesses around the country.Home foreclosure is one of debt’s most wrenching symptoms. In August, according to RealtyTrac, foreclosure filings were reported on 358,471 properties. That number amounts to one of every 357 housing units in the country.There was a smidge of good news. Filings were down 1 percent from July. Still, there were 18 percent more than in August 2008.Meanwhile, August consumer bankruptcy filings totaled 119,874, an increase of 24 percent over the number of filings in August 2008,according to the American Bankruptcy Institute, a nonpartisan organization that analyzes issues relating to insolvency. Here, too, there was a little bit of good news: The number of bankruptcy … [Read more...] about The Bad-Debt Blues
Share Tweet Plus One Pin It Email Print By: Ashok Kini August 20, 2018 9:16 pm Change Font Size ‘We repeat that the object of the Code, at least insofar as operational creditors are concerned, is to put the insolvency process against a corporate debtor only in clear cases where a real dispute between the parties as to the debt owed does not exist.’ The Supreme Court has held that an insolvency process cannot be put into operation when there is a pending proceeding challenging against an arbitral award. A bench of Justice Rohinton Fali Nariman and Justice Indu Malhotra (in K Kishan vs. Vijay Nirman Company Pvt Ltd) observed that filing of Section 34 (Arbitration) petition against an arbitral award shows a pre-existing dispute which culminates at the first stage of the proceedings in an award continues even after the award, at least till the final adjudicatory process under Sections 34 & 37 has taken place. In this case, the NCLT had admitted a … [Read more...] about Insolvency Process Can’t Be Admitted During Pendency Of Proceedings Challenging Arbitral Award: SC [Read Judgment]
Share Tweet Plus One Pin It Email Print By: P.V Dinesh December 19, 2018 3:24 pm Change Font Size Recently, on 26th November 2018, the Corporate Affairs Secretary Mr.Injeti Srinivas informed the country that out of the 9,000 cases filed before the National Company Law Tribunal (NCLT), 4,400 cases have been disposed of, leading to a recovery of approximately Rs.71,000 crores. The total bad debts assessed so far that is owed to the public sector banks in India amounts to Ten Lakh Crores of Rupees. As per the report published by the Insolvency and Bankruptcy Board of India(“IBBI”),in respect of the 32 companies which are stated to have been resolved in insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 (“IBC”), there is a recovery of Rs.49,783 crores which amounts to 56 % recovery. The balance, i.e., Rs.39,619 crores is written off, which would otherwise have been payable by these 32 companies. In the case of the 136 … [Read more...] about Insolvency Proceedings – Safe Passage for Defaulters?
Share Tweet Plus One Pin It Email Print By: ANUPAM LAL DAS March 26, 2018 10:39 am Change Font Size The Insolvency and Bankruptcy Code, 2016 (“Code”) was conceived as a path-breaking legislation to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals, in a time bound manner. The avowed objective was also to secure maximization of the value of assets of such persons, to promote entrepreneurship and balance the interest of all the stakeholders. The Legislative intent was to improve ease of doing business and to facilitate more investments, leading to a higher economic growth and development. The Supreme Court of India in a recent judgment in Innovative Industries Vs. ICICI Bank (2018) 1 SCC 407, authored by Hon’ble Justice R.F. Nariman, has exhaustively dealt with the provisions of the Code. It has eruditely delved into the Bankruptcy Reforms Act, 1978, adopted by … [Read more...] about The Insolvency And Bankruptcy Code: Some Fundamentals And Issues