Episode 69: Beyond Bendel: When is a UPE not a loan?

In this episode of TaxYak, our Senior Tax Trainers Phillip London and George Housakos yak with Arthur Athanasiou, Tax Partner at Thomson Geer. They take a deep dive into the burning issues resulting from the Full Federal Court’s 3:0 decision in favour of the taxpayer in FCT v Bendel issued on 19 February 2025, where an Unpaid Present Entitlement (UPE) was found not to be a loan for the purposes of Division 7A Income Tax Assessment Act (ITAA) 1936.

For example:

  • Taxpayer strategies for UPEs for year ending 2024
  • Taxpayer strategies for UPEs for year ending 2025
  • What’s next (Special Leave application to the High Court/Extension of time to file/Test Case funding)
  • Taxpayers appeal and objection rights
  • Tax Agent Services Act and Breach Reporting Regime risks
  • Will the Commissioner now look more closely at other taxation risks:
    • Section 100A Reimbursement Agreements
    • Subdivision EA of Division 7A
    • Part IVA Tax Evasion

The Bendel decision is not a green light that Division 7A cannot be triggered for UPEs. We hope you enjoy this episode of TaxYak.

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Listen to Episode 69:

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