Why Bendel decision is not the silver bullet many hoped for (opens original article in a new tab)

High Court confirmed that unpaid present entitlements in discretionary trusts are not considered loans under Division 7A tax rules, rejecting the ATO's long-standing position.

• High Court ruled that unpaid present entitlements in discretionary trusts are not loans under Division 7A tax rules
• Court rejected ATO's 2009 position on tax treatment of trust distributions
• Decision maintains previous Federal Court finding from 2022