diff --git a/compiler/src/dotty/tools/dotc/transform/Dependencies.scala b/compiler/src/dotty/tools/dotc/transform/Dependencies.scala
index 6f781c85a027..5e0b77dc9f45 100644
--- a/compiler/src/dotty/tools/dotc/transform/Dependencies.scala
+++ b/compiler/src/dotty/tools/dotc/transform/Dependencies.scala
@@ -179,6 +179,18 @@ abstract class Dependencies(root: ast.tpd.Tree, @constructorOnly rootContext: Co
         if enclClass.isContainedIn(thisClass) then thisClass
         else enclClass) // unknown this reference, play it safe and assume the narrowest possible owner
 
+    def setLogicOwner(local: Symbol) =
+      val encClass = local.owner.enclosingClass
+      val preferEncClass =
+        encClass.isStatic
+          // non-static classes can capture owners, so should be avoided
+        && (encClass.isProperlyContainedIn(local.topLevelClass)
+             // can be false for symbols which are defined in some weird combination of supercalls.
+            || encClass.is(ModuleClass, butNot = Package)
+                // needed to not cause deadlocks in classloader. see t5375.scala
+            )
+      logicOwner(sym) = if preferEncClass then encClass else local.enclosingPackageClass 
+
     tree match
       case tree: Ident =>
         if isLocal(sym) then
@@ -194,7 +206,7 @@ abstract class Dependencies(root: ast.tpd.Tree, @constructorOnly rootContext: Co
       case tree: This =>
         narrowTo(tree.symbol.asClass)
       case tree: MemberDef if isExpr(sym) && sym.owner.isTerm =>
-        logicOwner(sym) = sym.enclosingPackageClass
+        setLogicOwner(sym)
           // this will make methods in supercall constructors of top-level classes owned
           // by the enclosing package, which means they will be static.
           // On the other hand, all other methods will be indirectly owned by their
@@ -205,8 +217,8 @@ abstract class Dependencies(root: ast.tpd.Tree, @constructorOnly rootContext: Co
         // the class itself. This is done so that the constructor inherits
         // the free variables of the class.
         symSet(called, sym) += sym.owner
-      case tree: TypeDef =>
-        if sym.owner.isTerm then logicOwner(sym) = sym.topLevelClass.owner
+      case tree: TypeDef if sym.owner.isTerm =>
+        setLogicOwner(sym)
       case _ =>
   end process
 
diff --git a/compiler/src/dotty/tools/dotc/transform/LambdaLift.scala b/compiler/src/dotty/tools/dotc/transform/LambdaLift.scala
index 464e0d59afed..bb073666363b 100644
--- a/compiler/src/dotty/tools/dotc/transform/LambdaLift.scala
+++ b/compiler/src/dotty/tools/dotc/transform/LambdaLift.scala
@@ -94,20 +94,7 @@ object LambdaLift:
     private def liftLocals()(using Context): Unit = {
       for ((local, lOwner) <- deps.logicalOwner) {
         val (newOwner, maybeStatic) =
-          if (lOwner is Package) {
-            val encClass = local.enclosingClass
-            val topClass = local.topLevelClass
-            val preferEncClass =
-              encClass.isStatic &&
-                // non-static classes can capture owners, so should be avoided
-              (encClass.isProperlyContainedIn(topClass) ||
-                // can be false for symbols which are defined in some weird combination of supercalls.
-               encClass.is(ModuleClass, butNot = Package)
-                // needed to not cause deadlocks in classloader. see t5375.scala
-              )
-            if (preferEncClass) (encClass, EmptyFlags)
-            else (topClass, JavaStatic)
-          }
+          if lOwner is Package then (local.topLevelClass, JavaStatic)
           else (lOwner, EmptyFlags)
         // Drop Module because class is no longer a singleton in the lifted context.
         var initFlags = local.flags &~ Module | Private | Lifted | maybeStatic
diff --git a/compiler/src/dotty/tools/dotc/transform/MegaPhase.scala b/compiler/src/dotty/tools/dotc/transform/MegaPhase.scala
index e4a78616e4eb..9d241216bdaa 100644
--- a/compiler/src/dotty/tools/dotc/transform/MegaPhase.scala
+++ b/compiler/src/dotty/tools/dotc/transform/MegaPhase.scala
@@ -418,12 +418,16 @@ class MegaPhase(val miniPhases: Array[MiniPhase]) extends Phase {
         }
     }
 
-    if (tree.source != ctx.source && tree.source.exists)
-      transformTree(tree, start)(using ctx.withSource(tree.source))
-    else if (tree.isInstanceOf[NameTree])
-      transformNamed(tree, start, ctx)
-    else
-      transformUnnamed(tree, start, ctx)
+    // try
+      if (tree.source != ctx.source && tree.source.exists)
+        transformTree(tree, start)(using ctx.withSource(tree.source))
+      else if (tree.isInstanceOf[NameTree])
+        transformNamed(tree, start, ctx)
+      else
+        transformUnnamed(tree, start, ctx)
+    // catch case ex: AssertionError =>
+    //  println(i"error while transforming $tree")
+    //  throw ex
   }
 
   def transformSpecificTree[T <: Tree](tree: T, start: Int)(using Context): T =
diff --git a/tests/pos/i14707.scala b/tests/pos/i14707.scala
new file mode 100644
index 000000000000..b1da8e1a040e
--- /dev/null
+++ b/tests/pos/i14707.scala
@@ -0,0 +1,17 @@
+object M {
+  class A {{
+    def f(v: => Int): Int = 0
+    def g: Int = 0
+    new { f(g) }
+  }}
+}
+
+object M2 {
+  abstract class A {
+    def local = {
+      def f(v: () => Int): Int = 0
+      def g(): Int = 0
+      new AnyRef { def h = f(() => g()) }
+    }
+  }
+}
\ No newline at end of file