Commissioner of Taxation of the Commonwealth of Australia v. Bendel & Anor

Lower Court Judgment

19/02/2025 Federal Court of Australia (Logan, Hespe and Neskovcin JJ) 

[2025] FCAFC 15 

Catchwords

Taxation – Statutory construction – Income Tax Assessment Act 1936 (Cth) – s 109D(3) – Loan – Deemed dividends – Discretionary trust  – Where corporate beneficiary of a trust had a present entitlement which was unpaid – Whether present entitlement remaining unpaid was a loan for the purposes of s 109D of the Act – Whether a “loan” for the purposes of s 109D(3) of the Act is limited to circumstances where there is a transfer of an amount and an obligation to “repay” an identifiable sum – Whether it includes the situation where the trustee has resolved to distribute an amount to a beneficiary but the beneficiary consents or acquiesces to the amount being retained by the trustee and used for the purposes of the trust.