1. In Tom’s case from my point of view that Tom is full time basis as a garbage collector. And He also receives a small payment each weekend throughtout winter for playing football. And He was voted by spectators as the most player and received from local newspaper a Toyota Yaris car worth $17,000 and cash prize of $500. In this case the amount that Tom received from His full time job as a garbage collector was an ordinary income. Factors that indicated it was income were : * It was periodic, regular and expected.
* Tom as a tax payer relied on it for living.
In the other side Tom also receives a small payment each weekend during the winter for playing football. And he was voted as the most popular player. And received a Toyota Yaris car worth $17,000 and cash prize of $500. From my point of view this is the ordinary income. Because Tom always play football regulary during the winter and get paid every single game that he played.
2. In Jane’s case which is Her redeemed the frequent flyer points for a return flight to Paris to visit her sister. There is no tax consequences from Jane’s case because since She a member of the Qantas Frequent Flyer points and Qantas provided the benefit from the contractual relationship it had with the member (through the frequently flyer program).
3. In Margaret’s case which her received a cash payment of $40,000 from television show, as well as goods worth $20,000. And as a result of her success. Margaret is invited back for a championship play-off. And won $50,000. That was not ordinary income. because the assable income includes the value to you of all allowances, gratuities, compensations, benefits, bonuses and premium provided to you in respect of, or for or in relation directly or directly to any employment or services rendered by you.
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