A significant decision was handed down in the Federal Court which impacts the Division 7A consequences of unpaid trust distributions to corporate beneficiaries. The Court ruled against the ATO in Commissioner of Taxation v Bendel [2025] FCAFC 15 which essentially goes against a ruling the ATO issued in 2010 dealing with the application of Division 7A on unpaid present entitlements (UPEs) owed to corporate beneficiaries.

Discover the benefits of family discretionary trusts and recent developments affecting their use in Australia. With over 928,000 trusts managing assets worth $2.2 trillion, it's important to stay ahead of the risks. Learn how to manage your trust effectively with guidance from Moore Australia's experienced tax advisors. Contact us today to discuss your trust review or any concerns about trust management and distribution strategies.