From www.accountantsdaily.com.au: The Commissioner of Taxation has filed a special leave application to appeal the recent decision in Commissioner of Taxation v Bendel, asserting that unpaid present entitlements to corporate beneficiaries will continue to be treated as loans under Division 7A.

The ATO stated it will maintain its current interpretation of UPEs while the appeal is pending, and taxpayers are advised to ensure their UPE arrangements comply with Division 7A terms.

Tax professionals have expressed varied opinions on the ATO’s stance and its implications for corporate beneficiaries.