After Bendel: A Panel Discussion on Division 7A, Anti-Avoidance, and Beyond

$99.00

The Full Federal Court’s decision in Commissioner of Taxation v Bendel (February 19, 2025) has redefined the tax landscape for trusts, ruling that unpaid present entitlements (UPEs) between a corporate beneficiary and a trust do not constitute a loan under s109D(3) of Division 7A. This outcome overturns years of ATO guidance and necessitates a reassessment of trust distributions and tax compliance obligations.

Join our expert panel for a detailed examination of this development—tracing its origins from s109UB in the 1990s, through the ATO’s evolving positions as articulated in Taxation Ruling TR 2010/3 and Taxation Determination TD 2022/11, to the legislative and interpretive context that culminated in Bendel. We’ll dissect the court’s reasoning, its immediate implications for Division 7A’s application to UPEs, and the practical considerations for practitioners managing trust structures in this new environment.

The session will further address the interaction of this decision with existing anti-avoidance provisions, including Subdivisions EA and EB of Division 7A, and s100A, providing clarity on their scope and effectiveness in preventing tax avoidance post-Bendel. The discussion will also explore potential future directions, such as legislative amendments or structural adjustments, against the backdrop of the ATO’s longstanding concerns regarding the dual benefits of the CGT discount under Division 115 and corporate tax rates—issues that have informed its interpretive approach leading to this case.

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