Taxation Determination

TD 92/106W

Income tax: who should be assessed to interest earned on a joint bank account?

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Notice of Withdrawal

Taxation Determination TD 92/106 is withdrawn with effect from today.

1. TD 92/106 explains that for income tax purposes, interest income on a joint bank account is assessed to the persons who are beneficially entitled to the income. Joint account holders are presumed to have joint beneficial ownership in equal shares unless rebutted by evidence to the contrary.

2. TD 92/106 is replaced by Taxation Determination TD 2017/11 issued on 26 April 2017 which consolidates the ATO's views on who is assessed on interest on bank accounts. Further guidance on declaring interest on joint bank accounts is also available on www.ato.gov.au.

Commissioner of Taxation
26 April 2017

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References

ATO references:
NO 1-A8PCUFB

Related Rulings/Determinations:

IT 2486

Subject References:
derivation of interest from joint bank account

Legislative References:
ITAA 25(1)

Case References:
MacFarlane v. FC of T
86 ATC 4477
(1986) 17 ATR 808

Case Z7
92 ATC 131
AAT Case 7675
(1991) 22 ATR 3591