Bendel Case: UPEs Are Not Loans Under Division 7A – What This Means for Your Business

A judge's gavel on a desk with legal documents, symbolizing the Bendel case decision on Division 7A and tax law.

The Full Federal Court has ruled in Commissioner of Taxation v Bendel [2025] FCAFC 15, confirming that unpaid present entitlements (UPEs) owed to corporate beneficiaries are not loans for Division 7A purposes. This decision has significant implications for trust structures and tax planning, potentially overturning the ATO’s long-standing position. What Was the Issue? Since December … Read more