From www.pitcher.com.au: The ATO issued Draft Taxation Ruling TR 2024/D3, interpreting aspects of the “Third Party Debt Test” under new thin capitalisation rules, which requires borrowed funds to be used for commercial activities linked to Australia.

The updated PCG 2024/D3 provides transitional compliance approaches and outlines the possible application of anti-avoidance rules by the ATO.

A comprehensive submission was made addressing key concepts such as “Australian asset,” “commercial activities,” and “recourse” in response to the Draft Ruling and Draft PCG.