ABL tax partner Paul Sokolowski is quoted in the Australian Financial Review on today’s landmark decision in the High Court in favour of his client, accountant Steven Bendel:
“The High Court’s long-awaited judgment, dismissing the Commissioner’s appeal from the decision of the Full Federal Court, is welcome; for Mr Bendel, obviously, but also for taxpayers who finally have conclusive guidance on past distributions and when deciding on trust distributions to companies before the end of the current financial year and, perhaps, the next two. That said, any elation at the Commissioner’s loss will prove to be short lived with the implementation of the Government’s budget proposal for a minimum tax of 30% on trusts from 1 July 2028, a feature of which includes no credit for tax paid by a trustee for amounts distributed to companies. Indeed, one can see this aspect of the budget as the Government’s brutal pre-emptive strike against taxpayers that might otherwise have benefited from the High Court’s decision.”