The Australian Taxation Office (ATO) has launched public consultations on two draft Taxation Determinations (TD):

• TD 2018/D4: Income tax: thin capitalisation - valuation of debt capital for the purposes of Division 820
• TD 2018/D5: Income tax: what type of costs are debt deductions within scope of subparagraph 820-40(1)(a)(iii) of the Income Tax Assessment Act 1997?

TD 2018/D4 concerns the …