*Re AP Energy Investments Limited and FCT – Commissioner is appealing the AAT decision that the sale of the mining company was not taxable [27]

The Commissioner has lodged a notice of appeal to the Federal Court against the decision in AAT Case [2013] AATA 626, Re AP Energy Investments Limited and FCT. In that case, the AAT ruled that a Chinese company which made a capital gain of some $4m in the 2007 income year, when it sold the majority of its shareholding in an Australian company that carried on a business of mining exploration in Australia, was not liable for CGT on the gain on the grounds that the “principal asset” test in Subdiv 855-A of the ITAA 1997 was not passed.

[LTN 192, 3/10/13]