Discuss the income tax implications for James

Reference no: EM132760643

Question - James Wit, a high class Western Australian State League footballer was approached by a Victorian club to play for them in the coming 2020 season. James did not accept the offer but did agreed not to play for another national club for the next two years and received $50,000 for this commitment.

In May 2020, James had several disagreements with his current Western Australian club and as a result decided to leave and play for the Victorian club that had approached him earlier in the year. The Victorian club paid $20,000 to release James from his present contract and paid him an additional $10,000 in June to cover the cost of moving interstate.

Required - Discuss the income tax implications for James ignoring any CGT issues. Refer to relevant legislation and case law to support your arguments for and against before arriving at your conclusion.

Reference no: EM132760643

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