1.Wally is a director of ABC Ltd and receives a salary of $200,000 per annum. He also needed to expend money to keep his membership to CA of $2,000/year. The company has paid wages to him and the other employees amount $150,000 and he received a bottle of wine at Easter worth $600. The company provided him with a car for his family which is paid for the financial year. Wally also has received $30,000 for an injury at work of which $10,000 was for medical expenses. Wally has now negotiated with the CEO to leave the company and will be paid $100,000 for his departure and is not allowed to work for the compete company for 8 months. He also sold a ring given to him by his grandmother worth $6oo. Advise Wally of the tax consequences.

2.John works for ABC Pty Ltd and has the following receipts in 2017/2018 year:

a)A car provided for private use

b)A salary of $160,000

c)A payment of $300,000 for personal injury.

He also has the following expenses

a)University fee to undertake a MBA

b)Books and CPD cost.

Advise John.

3.Warren is a manager employed by Upbeat Pty Limited under a seven year contract. His employment package consists of the following:

(i)Annual salary of $100,000 payable monthly

(ii)Reimbursement of all medical expenses for himself and his family upon production of recieptsw

(iii)A loan at interest rate 7.5% below market rates to assist in the purchase of his home-the loan is provided by a bank that is a client of Upbeat Pty Limited provided the latter goes guarantor

(iv)An all expenses paid surfing holiday to Bali for himself and his family each year (if he wishes it).

At Easter 2009 Upbeat Pty Limited provides a "Bunny" hamper to Warren. As he is a more senior employee the hamper includes 7 bottles imported Mexican wine.

During the relevant year of income Warren successfully completes a postgraduate university qualification in stockbroking and is awarded a university prize of $21,000 for the best research paper submitted by a student. He has been claiming the payment of his university fees as a deductible expense

At the end of the relevant year of income, which is Warren's first year under his contract, Upbeat Pty Limited decides that reimbursing medical bill is potentially too expensive, so it pays him a lump sum of $12,000 to vary his contract and obtain a release of this obligation