On Apr. 15, TAI GVT shared reminder re reporting of bad debt losses.
TAI GVT shared TAI CA Tax guidelines for reporting bad debt losses for businesses.
Guidelines
Businesses can report bad debt losses if the debt has been overdue for more than two years and collection efforts have failed to recover principal and interest.
Must provide evidence like postal delivery certificates, return certificates due to refusal or death, or court-issued debt collection certificates in order to report bad debt losses.
If using court-issued debt collection certificate, loss is reported in the year certificate is obtained; if using registered mail delivery, report in the year document is delivered.
If the document is returned due to refusal or death, report in the year it is returned.
It is crucial to verify that the debtor’s business address has not changed, ensuring the legality of the delivery and the eligibility to recognize the bad debt loss.
