The case concerned whether deposits made by a private company into a joint bank account of the company's directors was income derived beneficially by the taxpayers and thus assessable in their hands. The taxpayer claimed, on behalf of himself and the Estate of his wife, that the payments represented wages paid to his three children and his nephew.
The AAT held that only a small proportion of the amounts deposited represented wages of the children. However, when money was paid by the company into the bank account as a wage paid to the nephew, that money was held on trust for the nephew.
The ATO's view of Decision is that the decision was based solely on the facts and will not have any impact on subsequent cases.