Question

Fred has been unemployed for six months. He has been using the Jobs R Us Pty....

Fred has been unemployed for six months. He has been using the Jobs R Us Pty. Ltd. employment agency
for the past four months to try to find employment. In March of this year, a new case manager, Bert, was
given the task of finding a job for Fred. Within a week, Bert, had found Fred a full time job. Fred bought a
$500 gold watch and gave it to Bert to say thank you.
Advise Bert as to whether the watch is assessable income. Refer to case law and legislation in your
answer. 10 marks
2. What is your subject

Taxation law

Homework Answers

Answer #1

As per the lawsof Income Tax, if a person receives gift of an aggregate value of less than 50,000 (in cash or kind) from any person other than,

  • Spouse of an individual
  • Brother or sisters of individual
  • Brother or sister of Spouse of such individual
  • Lineal ascendent or lineal descendent of an individual
  • Lineal ascendent or descendent of spouse of individual

or the gift received on the occasion of marriage, or by will or by way of inheritence, are exempt from tax.

As per the above scenario, Gold watch(kind form) is below the aggregate value of 50,000. Therefore, exempt from tax. The watch is not an assessable income.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT