MLC301 Principles Of Income Tax Law - Assessment Questions

QUESTION 2. 1

Bearing in mind the concept of ability to pay and equity between taxpayers, which of the following items would you see as income and therefore subject to tax (please disregard any current knowledge of taxation law):
(a) an employer pays for an employee’s child’s private school education. The payments are made directly to the school
(b) finding $10 000 buried under a railway bridge
(c) being paid for giving up your right to practice your profession
(d) goodwill on the sale of your business
(e) gain realised on the sale of property purchased with the intention to sell it at a profit
(f) gain realised on the sale of your private home
(g) gain realised on the sale of property acquired as a long-term rental investment
(h) increase in the value of property not yet sold
(i) gambling winnings
(j) prizes won from a competition involving skill (eg. musical competition)
(k) prizes won by a professional sports person
(l) gifts from a family member
(m) gifts from a business associate
(n) sale of shares in a public company.