EV 1052286383864currentnon-binding advice

Assessable income

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

Is the interest earned from the term deposit account included in your assessable income?

2

No. Based on the information provided to the Commissioner you are not the beneficial owner of the account and the interest is not assessable to you. The interest is included in the assessable income of Company Z being the beneficial owner of the account. This ruling applies for the following period : Year ended 30 June 2024 The scheme commenced on: 1 July 2023

3

You are the director and shareholder of Company Z. Company Z holds an amount in cash which was invested in a term deposit. You arranged for the money to be placed into a term deposit online with the bank. The bank mistakenly invested the money under your name rather than Company Z. The funds went directly from Company Z into the term deposit account and from the term deposit account back to Company Z on completion of the term, including interest earned. You were unaware of the bank's mistake. You did not use any of the funds or interest for your personal use.

4

Income Tax Assessment Act 1997 section 6-5