Tax Alert - High Court special leave application granted to appeal Bendel Case decision

Lowe Lippmann Chartered Accountants

High Court special leave application granted to appeal Bendel Case decision

The Australian Taxation Office has been granted special leave to appeal to the High Court from the Full Federal Court decision in FCT v Bendel [2025] FCAFC 15.

During March 2025 we released a Tax Alert (see here) explaining the current view of the ATO following the Full Federal Court decision that an unpaid present entitlement (or UPE) owed by a discretionary trust to a corporate beneficiary is not a “loan” for Division 7A purposes.

The ATO also issued an Interim Decision Impact Statement (see here) in response to the Full Federal Court decision, providing information for taxpayers and advisers in relation to the details of the case and issues decided by the court.

We expect this process to take some time to work its way through the High Court process. However, we all hope this matter can be heard quickly to reach a final decision on this Division 7A issue, to create certainty moving forward.

There continues to be an element of having to “wait and see” what happens next. We will continue to keep you updated on all future developments.

Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.

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