Donna is 18 years old and a full time accounting student. She is saving for an overseas holiday and works part time at a major department store. Two months before her planned trip she finds she still needs $5,000. Her father employs her for four weeks as an office assistant in his busy accounting practice. He pays her $5,000 for this work. The other office assistant receives $500 per week.

Discuss the tax implications for both Donna and her father as to the amounts received and amounts paid.

Your answer must be supported by reference to legislation, case law and tax rulings (if any).

Donna is 18 years old and a full time accounting student. She is saving for an overseas holiday and works part time at a major department store. Two months before her planned trip she finds she still needs $5,000. Her father employs her for four weeks as an office assistant in his busy accounting practice. He pays her $5,000 for this work. The other office assistant receives $500 per week.

Discuss the tax implications for both Donna and her father as to the amounts received and amounts paid.

Your answer must be supported by reference to legislation, case law and tax rulings (if any).