---
title: "Reconciliation of unpaid present entitlements to a private company, while the ATO reviews Division 7A"
url: "https://ailawframework.com/precedents/trusts-and-estate-planning/upe-reconciliation-while-ato-reviews"
type: "precedent"
site: "AI Law Framework"
id: "a19-upe-reconciliation-while-ato-reviews"
area_id: "A19"
kind: "checklist"
ai_level: "yellow"
version: 1
task_ids: ["A19-X20260927-4"]
law_stated_as_at: "2026-10-22"
---

# Reconciliation of unpaid present entitlements to a private company, while the ATO reviews Division 7A

> Reconciliation of amounts a trust has distributed to a private company and not paid.…

Canonical page: https://ailawframework.com/precedents/trusts-and-estate-planning/upe-reconciliation-while-ato-reviews  
Law stated as at: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

Reconciliation of amounts a trust has distributed to a private company and not paid. The ATO trust-entitlements page, last updated 2 July 2026, says the page is under review after a High Court decision and points to a decision impact statement.

## Key facts

- Kind: Checklist. Steps or checks to work through and tick off.
- Practice area: [Trusts & Estate Planning](https://ailawframework.com/precedents/trusts-and-estate-planning.md)
- Jurisdictions: Australia, Commonwealth
- AI level: Yellow. You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at: 2026-10-22
- Status: Maintained. Checked on 2026-10-22 against the authority it cites, for Australia and Commonwealth.

## When to use it

Use to list unpaid present entitlements owing to a corporate beneficiary and the documents on the file. Do not use it to decide whether Division 7A applies. Read the decision impact statement first.

## Used for these tasks

- [Reconcile unpaid present entitlements owing to a corporate beneficiary](https://ailawframework.com/practice/trusts-and-estate-planning.md#A19-X20260927-4)

## How AI may be used

AI may list entitlements, payments and loan documents from the accounts. It must not say whether Division 7A applies.

**AI may:**

- Enter the year, the amount of the entitlement and the amount still unpaid, from the ledger the lawyer names
- List any loan agreement or payment on the file, with its date
- Flag that the ATO page is marked as under review

**AI must not:**

- Must not state that an unpaid entitlement is a loan or a dividend
- Must not apply the page's description of financial accommodation as if the review had finished
- Must not draft a complying loan agreement

**The lawyer checks:**

- The decision impact statement linked from the page has been read before any advice
- Each row is an amount from the accounts, not a legal characterisation
- Section 100A is not decided in this reconciliation. The library has a separate task for it, and that part of the ATO page was not used
- TD 2022/11 is not treated as the current answer while the page says the content is under review

## Authorities

- [ATO, Division 7A: trust entitlements, last updated 2 July 2026 (page under review after the Bendel High Court decision; read the decision impact statement before relying on the page)](https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/private-company-benefits-division-7a-dividends/in-detail/division-7a-trust-entitlements)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/trusts-and-estate-planning/upe-reconciliation-while-ato-reviews and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*