From www.accountantsdaily.com.au: The Full Court of the Federal Court unanimously dismissed the appeal by the Commissioner of Taxation in the Bendel case, ruling that a UPE owed to a corporate beneficiary does not constitute a “loan” under Division 7A.
Legal experts suggest that while the Commissioner may pursue an appeal to the High Court, the strong, unanimous decision makes the chances of success low.
The ruling could compel the Commissioner to either seek legislative amendments or accept the decision, impacting the ATO’s application of Division 7A.