TD 2017/11 – WHO IS ASSESSED ON INTEREST ON BANK ACCOUNTS

Editor: The ATO recently withdrawn IT 2486, TD 92/106, TD 92/182 AND TD 93/148. The withdrawn rulings and determinations all dealt with different matters relating to who is assessed on interest income.

The ATO has consolidated the views expressed in the withdrawn ruling and determinations in new TD 2017/11.

As a general proposition, for income tax purposes, interest income on a bank account is assessable to the account holders in proportion to their beneficial ownership of the money in the account.

The ATO will assume, unless there is evidence to the contrary, that joint account holders beneficially own the money in equal shares.

However, this is a rebuttable presumption, if there is evidence to show that joint account holders hold money in the account in trust for other persons.

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