After 11 months of eagerly waiting, our client, Mr. Bendel, has won in Bendel v Commissioner of Taxation.

The AAT has ruled that an unpaid present entitlement (“UPE”) of a corporate beneficiary against a trust is not a loan within the meaning of s109D(3) of ITAA 36. Thus, the Commissioner’s heterodox view that a UPE can be a loan, which underpins TR 2010/3 (withdrawn) and TD 2022/11, has been seriously called into question.

Special thanks to our counsels – Mr. Andrew de Wijn and Mr. Paul Jeffreys – for their meticulous preparation and capable presentation of the case.

Should the reader wish to explore in further detail, please contact Buck Xiao from our Melbourne office.

Key Contact
Jian Buck Xiao
Buck Xiao

Director of Taxation