# No Capital Gains Tax - Foreign Property Owners



## Captain G (29 March 2010)

No CGT for foreign property owners !! Why ??  No wonder they're all buying up big. Will they pay any form of tax on their profits ?? If not it's a complete joke !! Here we go again selling out on our kids futures.


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## satanoperca (29 March 2010)

Hi,

Do you have any reference to this?

KRUDD should be stoned for treason. What did those diggers fight for in WW1 & WW11?

If foreigners can own property and not pay any CGT on profits then govnuts have lost the plot.

Cheers


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## Tatts (29 March 2010)

I found this in regards to an amendment to CGT rules in December 2006. Is your information from prior to this amendment? I think this is saying that foreign residents are liable for CGT although i may not be interpreting this correctly.

I've put a link underneath to the page i took this from with more information.



> The amendments replace the concept of “necessary connection with Australia” with the concept of “taxable Australian property.” Under the new provisions, a foreign resident will be subject to the CGT provisions if they hold “taxable Australian property” as defined by the Act and a CGT event happens concerning that property.
> 
> Broadly, taxable Australian property includes:
> 
> ...




http://www.mallesons.com/publications/2006/Dec/8723065w.htm


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## crazy-panda-eyes (4 April 2010)

^Concur with Tatts above

According to my delightful book on Australian Law - The general rule is that a foreign resident makes a capital gain or loss in regards to a CGT event that is a 'taxable Australian property" TAP

The scope of TAP includes investment property and non-portfolio shares 

Can also be seen in legislation: sec 855-15 (http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s855.15.html)
For leisurely reading


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