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Australia Issues Draft Technical Correction to Foreign Resident CGT Regime — Orbitax Tax News & Alerts

On 26 May 2014, the Australian Treasury issued a draft technical correction to the foreign resident capital gains tax regime. The correction amends the reference to a permanent establishment (PE) when determining if an asset is taxable Australian Property.

Currently, an asset is taxable if used at any time in carrying on business through a PE in Australia. The correction will change the reference for definition of PE from 23AH of the ITAA 1936, to the definition for PE under an applicable tax treaty.

Additional details, including the exposure draft, the explanatory memorandum, and information on making a comment can be found here: www.treasury.gov.au