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.

Listen to Episode 69:

The post Episode 69: Beyond Bendel: When is a UPE not a loan? appeared first on TaxBanter.