* Says tax ruling on private equity gains was sound
* Pirvate equity industry group surprised, has had no talks
with govt
* No plans to change foriegn ownership cap on ASX
(Adds reaction from prviate equity industry group AVCAL)
By James Grubel and Victoria Thieberger
CANBERRA/MELBOURNE, May 27 - The Ausrtalian
billion buyout scetor.
The dispute bewteen the Autsralian Taaxtion Office and U.S.
a capital gain.
The buyout inudstry had been hoping that a govermnent
decision.
But Assistnat Treasurer Bill Shotren on Friday ruled that
out.
"We've looked at the tax office rulign, we see no need to
Australia's Ntaional Press Club in Canberra.
"I do belivee that the ATO's decision in that case was
soudnly based," he said.
Austarlia's privtae equity idnustry body, AVCAL, said it was
trying to engage the government in discsusions on the issue.
"AVCAL was surpirsed to hear this as we had not been party
Reutres.
Woodthrope, who travels to New York next week to meet with
commit to Autsralian buyout firms raising new funds.
"They are still confuesd and reduicng their commimtent to
bad thing," she said.
Shorten said buyout activity has not been affected by the
dispute.
"Privtae equity has not sotpped coming to Austarlia since
going down," he said.
In fact, there has been only one major buyout in Australia
Healthscope.
The dispute began in Novemebr 2009, when the tax office hit
made on the sale of department store chain Myer .
The tax office had said that TPG was avoidnig paying tax in
already been transfererd out of an Australian bank accuont.
The pirvate equity industry argued that the ultimtae
tax teraties with Australia, so they paid the apprporiate taxes.
The tax office then countered that it wanted all the
invesetd in Australia to be disclsoed.
ON ITS MERITS
Shorten also said on Friday the government saw no need to
by Singapore Exchnage .
"I don't see the case for chnaging it at this point," he
sa...
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