Ref: AMK:lg
28 April 2025
Pri Wijesooriya Australian Taxation Office
By Email: Pri.Wijesooriya@ato.gov.au Dear Pri TD 2025/D2 1.
Thank you for the opportunity to provide comments on Draft Taxation Determination TD 2025/D2 (“Draft TD”) in relation to the application of section 109R 1 where notional loans are involved.
2.
Pitcher Partners specialises in advising taxpayers in what is commonly referred to as the middle market. Accordingly, we service many taxpayers that are required to manage Division 7A loans that would be impacted by the views contained in the Draft TD and the administration of them.
3.
We highlight that for the purposes of Division 30 of the Tax Agent Services Act 2009 and, in particular, the amendments to the Code of Conduct by the Tax Agent Services (Code of Professional Conduct) Determination 2024 (“Determination”), all of the comments made in this submission are directly relevant to us as a firm and our clients. While this may result in a conflict of interest for the purposes of section 20 of the Determination, we highlight that we have tried to ensure that our comments and suggestions in this submission are balanced and consistent with the policy, principles and intention of the rules as we understand them.
Correctness of view 4.
We do not agree with the view expressed in paragraph 8 of the Draft TD that section 109R can apply to disregard a loan repayment where the repaying entity is
1
All legislative references in this submission are to the Income Tax Assessment Act 1936 unless otherwise indicated.
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