From the case presented, it is true to say that since Mr. Brimble is not an employee of Development Co Ltd, he could not be assessable on the receipt.
Assessment is done on workers of a company or firm that are employed and are on the business payroll. Based on the provided case, Mr. Brimble is a minister serving the government but not a worker of the Co. Ltd despite introducing the development project within the firm. Therefore, the transfer of the unit to Mr. Brimble cannot be regarded as an assessable capital receipt. However, the development Co Ltd and the unit transfer would have been assessable even if it was cash. Only workers to a specific company are assessable on the receipt
Cowan, J. J. (2017). An Analysis of Retirement Financial Planning and Financial Literacy Among Women Between the Ages of 50 and 60 Years Old (Doctoral dissertation, Northcentral University).
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Mr. Brimble is a government minister. In 1995 he introduced Development Co Ltd to another company Construction-R-Us Co Ltd. as Development Co Ltd had some vacant land on which it wanted to develop into a large holiday unit complex. As port of this development. Development Co Ltd had to obtain approval from the Foreign Investment Review Board. which Mr. Brimble helps in obtaining.
Due to assistance provided by Mr Brimble. Development Co Ltd was able to successfully proceed ahead with the holiday unit complex and made a substantial profit on the sale of the individual units. of same $10.000.000. In gratitude of Mr. Brimble s assistance Development Co Ltd gifted one of the holiday units to Mr. Brimble. as well as paying for the stomp duty of $20.000 on the transfer of the unit. Usually such a holiday unit would have sold for $450.000.
In relation to the above facts which one of the following statements is true?
- Mr Brimble will not be assessable in relation to the transfer of the holiday unit from Development Co Ltd.as itis merely a personal gift.
- The transfer of the unit to Mr Brimble would be regarded as a capitol receipt and therefore non assessable.
- Since Mr Brimble is not on employee of Development Co Ltd. he could not be assessable on the receipt.
- The transfer of the unit cannot be assessable to Mr Brimble as itis not in the form of cash.
- The transfer of the unit to Mr Brimble would be assessable to him as it appears to be remuneration for services rendered.
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