From www.accountantsdaily.com.au: The recent Bendel decision has overturned the Australian Taxation Office’s longstanding interpretation that a UPE with a corporate beneficiary can be deemed a loan under Division 7A.

The tribunal concluded that UPEs do not qualify as loans since they do not involve an obligation to repay a principal sum.

This ruling has been upheld by the federal court, confirming that the Tax Office’s interpretation leads to absurd outcomes and emphasising that not all debtor-creditor relationships constitute loans.