Regular payment to a former employee

Reference no: EM13138480

Part 1: Concepts of Income

a) Is it possible for an employer to provide a regular payment to a former employee, can it be on the basis to compensate for a lower salary income or is it treated as a gift? Included in your answer should be any taxation considerations to both parties
b) Explain what constitutes a business for taxation purposes so that income derived by the taxpayer must be assessed for income tax.
Part 2: Deductions
Question "General Deductions"

1) What is your view re: compulsory business expenses and their deductibility under s8-1 ITAA97 where they are incurred AFTER the business ceases to operate? How does this compare to expenses such as legal fees? (5 marks).
2) Question "Specific Deductions"

Explain the difference between capital improvements compared to Repairs and Maintenance, giving consideration to a taxpayer who owns a rental property.

Reference no: EM13138480

Questions Cloud

What is the density of block : A 4.369 g sample of metal is placed in a flask. Water is added to the flask and the total volume in the flask is read to be 126.4 ml. The mass of the water

Religion and first amendment : Discuss the place that the First Amendment plays in shaping the perspective of religion in America. Specifically address what the First Amendment is/means, and how that affects the American religious culture, and specifically in relation to previo..

Challenges of islam in the modern world : Select one of the challenges of Islam in the modern world. Research on the Internet how this challenge is being met in major Muslim societies today.

Compute the income or loss before taxes recorded : Compute the income or loss before taxes recorded by Krawczyk for the years ended December 31, 2011, and 2012,as a result of the above transaction, assuming that the installments are collected as due under the contract.

Regular payment to a former employee : Is it possible for an employer to provide a regular payment to a former employee, can it be on the basis to compensate for a lower salary income or is it treated as a gift

Determine density of solid block : A solid block of exactky 100.0 cm 3 has a mass of 153.6g. Determine its density. Will the block sink or float on water?

Traditional flood story-hebrew bible : The Hebrew Bible have parallels with other "scriptures" from the ancient world. Consider the flood story in each tradition: read the different versions of the flood story. How are they different? How are they the same? Discussing what this suggest..

Mission, vision & values : Mission, Vision & Values How does a corporation determine what direction they will take in the marketplace? The first three elements of setting this direction are Mission Vision and Value Statements.

The magnetic tape recorder uses linear analog : The magnetic tape recorder uses linear analog to digital encoding. Telephone systems use non linear analog to digital conversion. Explain the difference.

User Account

All Pages