May 26 (Bloomberg) -- Overseas investment into Australia is at risk following delays to a ruling on how income of foreign private firms in the country will be taxed, the Taxation Institute of Australia said today.
The government needs to legislate on whether proceeds from Australian asset sales by foreign buyout firms are taxed as capital or revenue, the institute said in a statement. Currently, those profits are exempt from capital gains tax.
“This situation is causing more uncertainty and is not conducive to attracting foreign capital,” Robert Jeremenko, the institute’s senior tax counsel, said in the statement. The government risks “a snowballing negative impact.”
