Will julian wife be required to pay tax

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Julian and Jenna carry on a partnership business and for the income year ended 30 June, the partnership net income was $38,000, as returned by their accountant. However, included in the deductions was a salary of $12,000 paid to Julian's wife (who is not a business partner). The Commissioner disallows all but $2,000 of this amount.

Question a) Will Julian's wife be required to pay tax on $2,000, or $12,000, for the current income year. Why?

Reference no: EM132600863

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