Australia tax judgments and law updates
Judgments, legislation and official guidance, summarised in plain English with what each one means in practice. Last updated .
ATO loses Bendel appeal on unpaid trust entitlements
The High Court decided the Commissioner's appeal from the Full Federal Court in Bendel against the ATO, which described the outcome as adverse. The case concerned whether unpaid present entitlements owed by a trust to a corporate beneficiary are loans for Division 7A purposes. The ATO said it will update its interim decision impact statement.
What it means: Family groups with trust-to-company unpaid entitlements should revisit their Division 7A positions.
AUJudgmentHigh Court of AustraliaATO responds to PepsiCo ruling on embedded royalties
After the High Court held 4:3 in Commissioner of Taxation v PepsiCo [2025] HCA 30 that no royalty withholding tax or diverted profits tax applied, the ATO's decision impact statement says it still considers that royalties can be embedded in payments for goods or services and will keep scrutinising related-party arrangements.
What it means: Distribution and franchise payments by Australian entities to related IP owners remain an audit focus.
AUGuidanceATO
Summaries are prepared from published orders and reports for general information. They are not legal advice.