Is a surety payment on behalf of a company, tax deductible in your personal capacity?
By Marc Sevitz · Updated
It is not tax deductible as the amount in question is a capital figure - a loan essentially.
What happens if the company is liquidated and cannot repay the loan?
The bank could sue you personally for the amount as you have signed surety.
I have been sued and have paid. What if the company is liquidated and cannot pay me back? It thus becomes a bad debt and the question is, is it tax deductible?
The company and you are connected persons, so unfortunately you will not be able to claim the capital loss, otherwise in theory anyone could take advantage of such a transaction.