From hlb.com.au: The ATO has lost a landmark case (Bendel) regarding unpaid present entitlements to corporate beneficiaries, which were previously viewed as loans under Division 7A rules.

The Administrative Appeals Tribunal ruled that UPEs are not loans, and this decision was upheld by the Full Federal Court.

The outcome significantly affects how private groups handle UPEs and raises questions about future tax structuring in family trusts, pending further ATO guidance.