Draft Foreign Resident CGT Reforms Could Trigger Tax Bills for Transactions Dating Back to 2006

Foreign resident taxpayers could face additional tax bills, penalties, and a general interest charge for transactions that settled years ago. The Australian government has proposed draft reforms to foreign resident capital gains tax rules that would apply retrospectively from 2006. This move would allow the government to re-examine historical transactions and tax them differently than they were under the legislation and guidance in place at the time. CPA Australia warns that the proposal would reopen transactions that were long-settled, creating new liabilities for business owners, advisers and investors.