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Navigate the high-stakes Division 7A fallout, protect client trust structures, and master practical strategies for unpaid present entitlements.
Few tax cases have generated as much discussion among advisers to private groups as the Bendel litigation. For decades, advisers operated on the basis that unpaid present entitlements owing by trusts to corporate beneficiaries could trigger Division 7A consequences under the Commissioner’s administrative approach. The Full Federal Court’s decision in Bendel challenged that long-held position, creating significant uncertainty for private groups, advisers, and taxpayers while raising fundamental questions about the interaction between trust law and Australia's private company anti-avoidance rules.
This session examines the legal and practical implications of Bendel and the broader issues arising at the intersection of trusts and Division 7A. The course explores the relevant statutory framework, competing legal arguments, potential outcomes following further judicial consideration, and the practical considerations for advisers managing trust structures in an uncertain environment. Participants will gain insight into the risks, opportunities, and strategic decisions facing private groups while the law continues to evolve.
Key Topics Discussed:
Associate Director (Tax and Revenue) | Cowell Clarke
Joshua Pascale is a member of Cowell Clarke’s Tax & Revenue, Superannuation and Agribusiness teams. Josh takes a practical and commercial approach in advising property and business owners on a wide range of Federal and State tax law issues, as well as the pertinent superannuation and commercial law matters specific to their circumstances. Josh has developed a particular interest in group restructures and succession planning from both a private and business perspective. Josh is a co-author of Cowell Clarke’s Australian Agribusiness Advisers’ Guide, the definitive textbook for accountants and other professional advisers acting for clients in the agribusiness sector. He also co-authored Cowell Clarke's SMSF Income Stream Guide, recognised by The Tax Institute as the “definitive guide for professionals dealing with SMSF income streams”. Josh has been recognised in the Best LawyersTM Australia 2027 for Tax Law and Wealth Management/Succession Planning Practice.
Associate (Tax & Revenue) | Cowell Clarke
Carlie Frantzis works in Cowell Clarke’s Tax & Revenue team, advising on Federal and State taxation law. Carlie has assisted clients in various matters including preparation of advices, effecting private restructures, obtaining ATO private binding rulings and assisting in ATO reviews and audit matters. Carlie has a strong understanding of the key issues facing the tax industry, having completed her Honours dissertation which considered whether the ATO is overstepping its role as an administrative body.