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Why the Bendel case could lead to Division 7A’s long-overdue revamp

The big question is whether the government will apply another Band-aid solution or finally decide to simplify anti-avoidance laws.

When a taxpayer triumphs over the Australian Taxation Office, speculation ensues as to how the authorities will react.

We’ve seen this again in the month since the full bench of the Federal Court unanimously confirmed that Melbourne accountant Steven Bendel had succeeded in his claim that certain distributions owed by a trust to a corporate beneficiary shouldn’t be treated as loans under Division 7A.

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Mark Molesworth is a tax partner with BDO Australia.

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    Original URL: https://www.afr.com/policy/tax-and-super/why-the-bendel-case-could-lead-to-division-7a-s-long-overdue-revamp-20250324-p5lm2z