MLC301 Principles of Income Tax Law - Question/Answer

Question 4 (4 points)

Discuss the assessability for Anne of the receipt of the voucher (4 marks):

Christine is the wife of John, the manager of a large retail store. John employs Anne as a casual employee of the store. On Anne’s first day at work, she was introduced to Christine. Anne got on so well with Christine, that they have caught up every week for coffee since. This year, Christine buys Anne a gift voucher for her birthday.
The voucher (redeemable for online goods to the value of $100) has a card attached to it which states ‘thanks for being a great friend to me, and a great employee for John. Love Christine and John’. Anne decides to purchase a new radio with the voucher.