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Edited version of private ruling
Authorisation Number: 1011906876312
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Ruling
Subject: Timing of Income
Question 1
Is the amount which was credited to your bank account on 30 June 2011 assessable in the year ended 2011?
Answer
Yes
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You return your income on a cash basis.
An amount, made by electronic funds transfer, was credited to your bank account on 30 June 2011.
Reasons for decision
These reasons for decision accompany the Notice of private ruling.
While these reasons are not part of the private ruling, we provide them to help you to understand how we reached our decision.
Detailed reasoning
Income is assessable for income tax purposes under subsection 6-5(4) of the Income Tax Assessment Act 1997 (ITAA 1997) when it is derived.
Taxation Ruling TR 98/1 sets out the Commissioner's guidelines for the treatment of income ad provides that under the cash basis of accounting, income is derived when it is received, either actually or constructively.
In your case, the payment was credited by your bank to your account on 30 June 2011. The date that the bank has recorded the payment is the date that the payment was received by you, that is, 30 June 2011.
Your income was derived and is assessable in the year in which it was received, being the year ended 30 June 2011. There are no provisions in the tax legislation that would allow the Commissioner to assess the receipt other than in that income year.