MLC301 Principles of Income Tax Law - Question/Answer

Question 7 (4 points)

Explain whether the following receipts are specifically exempt (please cite sections) from income tax (1 mark each):
i. A payment of $50,000 received by a community service society carried on for profit or gain of its individual members.
ii. A payment of $300,000 received by the NONA Art Society which is a club established for the continued encouragement of art.
iii. A single income family supplement paid to a working couple with two young children.
iV. An allowance paid to a defence force member who is deployed overseas but is not on eligible duty.