A landmark decision challenging the Australian Taxation Office’s rulings on trusts could trigger appeals by taxpayers who have had their assessments amended to increase their tax during the past 14 years.

It comes after the Administrative Appeals Tribunal (AAT) rejected the ATO’s argument that accountant Stephen Bendel’s $1.3 million in unpaid trust entitlements was a loan under Division 7A of the Income Tax Assessment Act, which is intended to stop profits going tax-free to private company shareholders.