The Full Federal Court has made final orders in the litigation concerning Resource Capital Fund III LP’s exit from its Australian investment.
The taxpayer now has 28 days to determine whether it will lodge an application for special leave to appeal to the High Court of Australia. The decision is particularly relevant to large private equity houses with investments in the mining sector.
Pending any appeal, the Full Federal Court’s decision raises more questions than answers. The decision was in favour of the Tax
Commissioner and resulted in the denial of tax treaty benefits to United States resident investors in a Cayman Islands limited partnership with an investment in an Australian mining company.
In this edition of Corrs In Brief, we analyse the judgment and the implications for foreign private equity investors.
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