1. For each of the following,discuss whether the taxpayer should include the amount received in his/ her tax return.

NOTE: You must refer to sections in the legislation and/ or case law to support your explanations.

(a) Tim, a professional boxer, receives a $25,000 gift from one of his sponsors after a great performance.

(b) Sam, a resident Australian taxpayer, receives bank interest from her savings account in Paris, France.

(c) Ben receives a salary of $400 per week from his services to the Australian Army Reserves.

(d) Freya is employed as a sales rep for ABC Ltd. Her salary includes a car fringe benefit worth $25,000.

2. On 30 June 2022, ABM Ltd (an Australian resident company) recorded sales income of $40,000 and had allowable deductions of $36,000.

It also received a dividend of $20,000 that was franked to 80%.

Required: Calculate ABMLtd's tax payable or refundable. Show all calculations.