TD 2018/13 – Div 7A: ordinary commercial payments or loans, to interposed entities can still trigger the s109T anti-avoidance provision (but not necessarily trigger Div 7A)
On 18 July 2018, the ATO issued Taxation Determination TD 2018/13, which considers whether a Div 7A interposed entity rule (s109T of the ITAA36) can apply to an ordinary commercial payment, or loan from a private company to an interposed entity. The Commissioner concludes that it can apply, which is to say that a two step…