On 26 May 2014, the Australian Treasury issued a draft technical correction to the foreign resident capital gains tax regime. The correction amends the reference to a permanent establishment (PE) when determining if an asset is taxable Australian Property.
Currently, an asset is taxable if used at any time in carrying on business through a PE in Australia. The correction will change the reference for definition of PE from 23AH of the ITAA 1936, to the definition for PE under an applicable ta…