Question

Roberto is a manager employed by CAD Pty Limited under a seven-year contract. His employment package consists of the following:

(a) annual salary of $100,000 payable monthly;

(b) Receipt of a bottle of wine at Easter;

(c) Expenses of $4,000 for a degree course to better his ability to undertake his job

Advise roberto of the tax consequences of these payments, receipts and entitlements. Cite the relevant legislation and cases to support your answer.

Answer 1

a)

Annual salary recieved by monthly was taxable in the hands of Roberto

that is roberto was laible to pay tax on the salary income as per the rules

b)

Reciepet of bottle wine at ester by roberto was exempt from tax

and its was traeted as a gift

and not liable to pay the tax

c)

expenses incurred of 4000 $ for degree course to better his ability to undertake his job was eligble to deduction from his aggregate total income

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