From www.pitcher.com.au: Pitcher Partners submitted a response to the ATO) regarding Draft Taxation Determination TD 2025/D2, which addresses the application of section 109R in Division 7A relating to notional loans.

The firm disagrees with the ATO’s view that such loans can be disregarded for repayment purposes when obtained indirectly, advocating that section 109R should only apply when loans come from the original lender.

Pitcher Partners also seeks clearer guidelines from the ATO on assessing the amount of notional loans and suggests that under certain circumstances, the notional loan amount should be considered nil.