Resource Capital Fund IV LP v Commissioner of Taxation

The Federal Court Revisits the Tax Treatment of Limited Partnerships

The recent decision in RCF IV LP v CoT challenges the legislative basis for the Commissioner to treat a Limited Partnership (LP) as a taxable entity for the purpose of raising assessments of tax.   This has significant implications for all investors in a domestic or foreign LP.  

The judgment also provides further authority as to the application of –

• the business profits and alienation of property articles in Australia's double tax treaties,
• the character and source of profits or gains made by private equity funds;
• the test for reliance on a public taxation ruling; and
• Australia's non-resident capital gains tax exemption in Subdivision 855-A ITAA 1997.

RSVP essential:  Please email rsvp@vicbar.com.au before 30 April.