The Australian Taxation Office released Taxation Determination TD 2008/23 saying that the active assets of a partnership, in which a foreign company is a partner, are not active foreign business assets of the foreign company for the purposes of the capital gains participation exemption in Subdivision 768-G of the Income Tax Assessment Act 1997.
Subdivision 768-G exempts from Australian capital gains tax gains and losses made by a foreign company from a disposal of shares in foreig…