Private ruling: Assessable income
Date of advice: 15 June 2023
Published: 7 August 2023
Ruling period: Year ending 30 June 2024 | Year ending 30 June 2025 | Year ending 30 June 2026
Date scheme commenced: 1 July 2023

Ruling: Q1: Do you have a beneficial ownership of the foreign bank account you jointly hold with your parent and is any interest received assessable income to you under section 6-5 of Income Tax Assessment Act 1997 ? | A1: No. Based on the information provided to the Commissioner you do not have a beneficial ownership in the foreign bank account you jointly have with your parent. The interest derived on this foreign bank account is therefore not assessable to you and not required to be declared in your Australian tax return.

Relevant facts and circumstances: You have a joint bank account with your parent. You do not use this bank account and is solely for your parent who has the beneficial ownership of the money. You are a joint account holder with your parent since your other parent passed away. You have committed to be a joint account holder to help your parent should a need arise since your older sibling lives overseas. You have sent gifts to this account to be used by your parents for their expenses over the years. You have not drawn any money for yourself from these accounts. While the bank interest is credited to the joint account, you advised that you have never used any interest received from the account. The interest is used solely by your parent. You have furnished a declaration from your parent witnessed by a solicitor to advise that the bank interest that is credited to the joint account is for the sole use of your parent.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5