Buy custom Taxation Law (Australia) With Calculation Of Indexation
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| Topic: |
Miscellaneous
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| Number of pages / Number of words: |
10 / 2776 |
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Taking into consideration the above, the earnings Andrew made amounting to $1,000,000 is liable for assessment without any deductions and is taxable.
Issue 3
Law& Application: s 6(1) ITAA 1936 “income for personal exertionâ€In the above situation there are 2 aspects one is with the bonus amount of $5000 & $3000 with is considered as normal income or not...
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The key is to differentiate as to whether it is a gift or not.
Gifts are considered as ordinary income if the amount is a product of employment or services rendered. In this case it is clear that the bonus of $5000 was rendered due to the services rendered or Andrew’s perceived diligence. Under no grounds is it a payment made for personal reasons therefore is considered as ordinary income and is assessable as income and is taxable...
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