| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1051240705185
Date of advice: 22 June 2017
Ruling
Subject: Interest income
Question:
Are you required to include the interest income in your tax returns?
Answer:
No.
Having considered your circumstances you are not required to include the interest income in your tax return as you do not have beneficial ownership of the money held in the bank account. Further information on beneficial ownership of the money held in a bank account can be found on our website ato.gov.au by searching the ATO’s legal data base for Taxation Determination TD 2017/11.
This ruling applies for the following periods:
Year ended 30 June 2015
Year ended 30 June 2016
Year ending 30 June 2017
The scheme commenced on
1 July 2014
Relevant facts
You act as an escrow agent for a client.
An agreement was entered and under the terms of the agreement you are required to hold a sum of money in a bank account for your client.
You have no beneficial interest in the funds held in the account.
Interest was earned on the funds held in the account and paid to your client.
Your client has returned the interest income in their tax returns.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 6-5(2)
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
