Explain capital gains tax, and also discuss whether the receipt of the designer watch constitutes assessable income.?

 

Where appropriate, support your answer with legislative and case authority.

Kayla works as a paid employee for a profit-making institution (funded by government grants) that helps long-term unemployed people get work. Greg has been unemployed for a number of years. Kayla as part of her work spends much time with Greg (usually 8 or so hours a week) for a number of months, where she helps him improve his CV, and also gives him help in improving his interviewing skills, as well as giving him advice on how he should dress for job interviews. They also during this time have informal discussions about their lives in general - Greg found that this has improved his confidence. Kayla was unaware that Greg had over time fallen secretly in love with her.

Greg finds a good full-time job, and is so happy, that he buys Kayla a designer watch as a present, which is worth $4000.