Private ruling: Assessable income
Date of advice: 10 February 2022
Published: May 2022
Date scheme commenced: 1 July 20XX

Ruling: Q1: Can the income generated from the investments in the Share Trading Account be assessable to Taxpayer 1 and Taxpayer 2 in proportion to their beneficial ownership of the account? | A1: Yes . Having considered your circumstances and the relevant factors, we accept the beneficial owners of the Share Trading Account are different to the legal owner. The beneficial owners, Taxpayer 1 and Taxpayer 2, have held proportionate ownership interests in the investments in the Share Trading Account since XX/XX/XXXX when Taxpayer 2 was granted Authority to Trade on the Share Trading Account. Therefore, Taxpayer 1 and Taxpayer 2 can declare the income (such as interest, dividends and net capital gain/loss) from investments in the Share Trading account in their respective income tax returns in proportion to their beneficial ownership. Further information can be found in Taxation Determination TD 2017/11 Income tax: who should be assessed to interest on bank accounts? This private ruling applies for the following periods: Income year ended 30 June 20XX Income year ended 30 June 20XX

Relevant facts and circumstances: Taxpayer 1 and Taxpayer 2 have been in a de facto relationship for many years and plan on getting married on XX/XX/XXXX. On XX/XX/XXXX, Taxpayer 1 opened a Share Trading Account. On XX/XX/XXXX, Taxpayer 2 was added as an Authority to Trade on the Share Trading Account and evidence was provided showing Taxpayer 1 and Taxpayer 2 both have authority to act on the Share Trading Account. Taxpayer 1 and Taxpayer 2 make joint decisions about the Share Trading Account such as the investment strategy and execute that strategy jointly. The resulting dividends received and/or any net capital gain/loss made on the investments in the Share Trading Account are automatically reinvested into the account. The monthly salary of Taxpayer 1 of approximately $X is deposited directly into the Share Trading Account. The salary of Taxpayer 2 of approximately $X per month, is deposited directly into a separate Transaction Account. Funds from the Transaction Account pays for all Taxpayer 1 and Taxpayer 2 joint expenses. Any surplus funds in the Transaction Account are deposited into the Share Trading Account. Taxpayer 1 also has authority over the Transaction Account. Whilst there is no written agreement in place, Taxpayer 1 and Taxpayer 2 consider the Share Trading Account and the investments in the account as assets of the relationship that are equally owned and utilised to the benefit of both.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 subsection 6-5(2) | Income Tax Assessment Act 1997 subsection 6-5(4)