The Australian Taxation Office releases two final Tax Determinations in relation to the treatment of gains made by non-resident private equity investors

On October 26, 2011, the Australian Taxation Office issued two Tax Determinations in relation to the treatment of gains made by non-resident private equity investors. The first Determination relates to the source of income derived from the sale of shares in an Australian company by a non-resident PE fund and the second Determination relates to the ability to 'look through' certain non-resident fiscally transparent entities (such as foreign resident partnerships in tax havens) to the ultimate investors, for the purposes of considering whether treaty benefits apply to that investor.