
In December 2024, the ATO published a draft taxation determination (TD 2024/D3) outlining their view that a deemed dividend can arise under Division 7A where a private company guarantees a bank loan made to another private company in the group, where that bank loan is then on-lent or on-paid to a related trust or individual. Refer to our article on this new ATO guidance (see here).
Pitcher Partners have made a submission in response to the draft taxation determination setting out our interpretation of the relevant provisions and advocating for sensible safe harbours for taxpayers who enter into ordinary commercial financing arrangements.
You can read our submission below.