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Income from a child’s investment It is a generous act for a parent or aunt or uncle to start a savings account for their kids or a new addition to the next generation. It is uncommon among the warm and generous emotions that accompany giving such a gift to the newly arrived family member, to factor in the taxation obligations that may eventually come along due to this generosity. A young child may not be able to use the ATM or see over the counter at the bank, but they can certainly have bank accounts. Naturally it is a child’s guardian who will manage their financial matters, and therefore a parent may operate a savings account on behalf of a child. For taxation however, while the account may be in the child’s name and the funds in that account are the property of that child, the underlying legal principle that prevails is that investment income (in this case, the bank account’s interest) is assessable to the person who  beneficially owns  the money (and not ...