Episode 69: Beyond Bendel: When is a UPE not a loan?

In this episode of TaxYak, our Senior Tax Trainers Phillip London and George Housakos yak with Arthur Athanasiou, Tax Partner at Thomson Geer. They take a deep dive into the burning issues resulting from the Full Federal Court's 3:0 decision in favour of the taxpayer in FCT v Bendel issued on 19 February 2025, where an Unpaid Present Entitlement (UPE) was found not to be a loan for the purposes of Division 7A Income Tax Assessment Act (ITAA) 1936. For example: Taxpayer strategies for UPEs for year ending 2024 Taxpayer strategies for UPEs for year ending 2025 What's next (Special Leave application to the High Court/Extension of time to file/Test Case funding) Taxpayers appeal and objection rights Tax Agent Services Act and Breach Reporting Regime risks Will the Commissioner now look more closely at other taxation risks: Section 100A Reimbursement Agreements Subdivision EA of Division 7A Part IVA Tax Evasion The Bendel decision is not a green light that Division 7A cannot be triggered for UPEs. We hope you enjoy this episode of TaxYak. Listen to Episode 69: