Area of law

Taxation, explained.

Every High Court of Australia Taxation judgment we've explained — together with the matters in this area listed to be heard or awaiting decision.

Taxation | 10 June 2026

Unpaid present entitlements of corporate beneficiaries are not 'loans' under Division 7A: mere forbearance does not constitute financial accommodation

The High Court has resolved a long-contested question in Division 7A of the ITAA 1936: a private company beneficiary's failure to demand payment of an unpaid present entitlement from a discretionary trust does not constitute a 'loan' to the trustee — whether as 'financial accommodation' under s 109D(3)(b) or as a transaction 'in substance' effecting a loan under s 109D(3)(d).

Commissioner of Taxation v Bendel · [2026] HCA 18

Taxation | March 2026

Commissioner of Taxation v. Merchant & Anor, Merchant & Anor v. Commissioner of Taxation

Whether the Full Court correctly applied the law on identifying tax avoidance schemes when a corporate trustee sells shares at a loss to a related superannuation entity, then that entity later makes a capital gain on resale.

Judgment reserved · Sydney · on appeal from [2025] FCAFC 56

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