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
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,
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.
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