Thieving OZschwitz tax office deals a blow to private equity

The Tax Office has ruled that gains from asset sales by private equity firms will be taxed as income, dealing a blow to an industry already struggling with nervous sharemarkets and a shortage of willing buyers.

The Australian Tax Office's ruling also ensures that private-equity lobbyists will head to Canberra in the new year to call on the government to legislate to overturn the ruling, which they say will hurt Australia's investment reputation.

"The release today of the ATO's final determination clears the way for us to engage with the federal government to give foreign investors certainty on tax issues," the Australian Private Equity and Venture Capital Association said.

The ruling stems from a dispute between the tax office and private equity firm TPG last year. TPG was hit with a $US628 million tax bill on the $US1.4 billion profit it made on the sale of department store chain Myer.

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Thieving OZschwitz tax office deals a blow to private equity

Thieving OZschwitz tax office deals a blow to private equity

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