Employment package consists

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Reference no: EM133209509

Ben is a client of the practice that you work at. He has come to see you and your supervisor and provides you with the following information at conference.

1. Jack is a manager employed by Hifi Pty Limited under a two-year contract. His employment package consists of the following:

Annual salary of $120,000 payable monthly;

2. At Easter 2022 Hifi Pty Limited provides a "Bunny" hamper to Warren. As he is a more senior employee the hamper includes 10 bottles imported Mexican wine.

3. Rent of $40,000 received on a house he rents in Newcastle.

4. The sale of an investment property sold for $600,000 which he had acquired for $400,000 a year before.

You have been asked by your supervisor to provide a Letter of Advice to Ben of the tax consequences for him of these payments, receipts and entitlements.

Cite the relevant legislation and caselaw in your answer.

Reference no: EM133209509

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