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 Thus, the Commissioner’s heterodox view that a UPE can be a loan, which underpins TR 2010/3 (withdrawn) and TD 2022/11, has been seriously called into question.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.