On 5 September 2008, the Australian Taxation Office released an Interpretative Decision ATO ID 2008/117 confirming that the business income derived by a US LLC, which is treated as a foreign hybrid company for Australian income tax purposes, is non-assessable non-exempt income of the shareholder in the LLC.
By way of background, certain foreign entities transparent for tax purposes in the jurisdiction of their residence are classified as "foreign hybrids" for Australian tax purpos…