In the last edition of our newsletter, we touched upon the High Court’s Decision regarding Unpaid Trust Entitlements (UTE) aka the Bendel case. The Bendel case refers to the Full Federal Court decision in Commissioner of Taxation v Bendel [2025] FCAFC 15 (Bendel), which challenged the Australian Taxation Office’s (ATO) longstanding position on the tax treatment of unpaid present entitlements (UPEs) to corporate beneficiaries in trusts.
The Full Federal Court has dismissed the ATO’s long-standing position that an unpaid present entitlement (UPE) from a trust to a private company should be treated as a loan under the Division 7A deemed dividend rules.
You spend years working hard to accumulate your assets, but do you have the right strategies in place to protect those assets?