16 May 2019 Appeals update: RCF case
The taxpayer has applied for special leave to appeal to the High Court from the Full Federal Court decision.
The Full Federal Court allowed the Commissioner’s appeal with the result that the Commissioner’s original decision was upheld.
The Federal Court, at first instance, had decided that the profits made by two limited partnerships, Resource Capital Fund IV LP (RCF IV) and Resource Capital Fund V LP (RCF V) (or, strictly speaking, the profits attributable to US-resident partners in RCF IV and RCF V) from the sale of their shares and interests in Talison Lithium Limited, an Australian company, were not assessable to Australian tax as capital gains, because of the operation of Div 855 of the Income Tax Assessment Act 1997.
A summary explaining the RCF case is available in TaxVine 12 (5 April 2019).