Private ruling: Interest income
Date of advice: 22 June 2017
Published: October 2017
Ruling period: Year ended 30 June 2015 | Year ended 30 June 2016 | Year ending 30 June 2017
Date scheme commenced: 1 July 2014

Ruling: Q1: Are you required to include the interest income in your tax returns? | A1: 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.


Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 6-5(2)


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.