Dear all

We had a free interest loan to a foreign subsidiary in 2016. This loan was written off end of 2016 since we were not expecting to get it back, which then triggered deemed dividend from a foreign company and is exempt for tax. In 2017 the situation changed and foreign subsidiary had enough cash to pay the loan. The loan is now paid up.

What is the tax implication of the transaction?
Do I need to included deemed interest on the loan for the period of 2017 on my tax calc?
Do I still treat the transaction as dividend received or do I reverse the entry?

Regards
Malose