• Investments in foreign hybrids

    A foreign hybrid is an entity that is taxed in Australia as a company but taxed overseas as a partnership. This can include a limited partnership, a limited liability partnership and a US limited liability company.

    If you have an investment in a foreign hybrid (referred to as being a member of a foreign hybrid), you're treated for Australian tax purposes as having an interest in each asset of the partnership.

    As a consequence, any capital gain or loss made in relation to the assets of a foreign hybrid is taken to be made by the member.

    Last modified: 17 Jul 2017QC 52308