Discuss the following business law questions

Question 1

Discuss what is meant by FBT? You should discuss the relevant statutory provision as well as the various categories and why the legislation was introduced.

Question 2

During the current tax year Erin received the following amounts:

• Salary and wages income of $98,000.
• $4,400 interest from a bank term deposit of $50,000.
• $500 per week for 50 weeks of the year from a rental property she owns.
• Winnings of $10,000 on the poker machines.
• $500 from selling eggs that her chickens laid to friends.
• A holiday bonus of $1,000 from her employer.
• A watch worth $400 from a happy client.

Question 3

Discuss the importance of the distinction between receipts that are capital in nature from those that are income in nature.

Question 4

Paula is employed as a Physical Education (PE) teacher at the local high school. During the year, she spent the following amounts for which she has substantiation:

• Purchase of gel comfort running shoes worn everyday (2 pairs) $460
• Purchase of sunscreen, required as her classes are mostly conducted outside $70
• Cost of a one-day seminar on new warm-up and stretching techniques $160
• Taxi fares for travel from home to work when her car was at the mechanic $50
• Cost of first aid course (total before $400 reimbursement by the school) $400