On 26 April 2013, the Australian Federal Court handed down its decision in Resource Capital Fund III LP v. Commissioner of Taxation [2013] FCA 363. Background The facts of the case are relatively simple – in 2006, Resource Capital Fund III LP (RCF), a limited partnership formed in the Cayman Islands, bought shares in St Barbara Mines Ltd (SBM), an Australian company that conducted a gold mining enterprise in Australia. In 2007, RCF sold some of its shares in SBM to unrelated parties and realized a profit on the sale. RCF has one general partner, which is also a partnership...