The Inland Revenue Authority of Singapore published guidance on 28 January 2021 concerning the Tax Treatment of Debts Forgiven under MinLaw's Simplified Debt Restructuring Programme. The Simplified Debt Restructuring Programme (SDRP) has been established by the Ministry of Law as part of the Simplified Insolvency Programme to assist micro and small companies to restructure their debts to rehabilitate the business, particularly given the effect of the COVID-19 pandemic. Taking into consideration the purpose of the SDRP, it is provided that debts forgiven (including trade debts and loans) under the SDRP will be regarded as capital in nature and hence not...