From www.khq.com.au: The Full Federal Court’s decision in Bendel challenges the ATO’s long-standing position that unpaid present entitlements (UPEs) are classified as loans under Division 7A, indicating that proactive steps must be taken for a loan to exist.

Proposed legislative changes to Division 7A, which were previously introduced by the Coalition in 2018, might be revisited post-election in light of this ruling.

Taxpayers are advised to be cautious as the ATO may utilize other tax integrity provisions, such as section 100A, to address remaining compliance issues related to UPEs.