Indicate whether the statement below is TRUE or FALSE and include a brief explanation for your answer. Where possible, refer to a source of law

1. Although s 15-2 ITAA97 is about allowances in respect of employment or services, allowances that are in the nature of wages or salaries are not assessable under the provision, due to the operation of s 15-2(3).

2. In Harding v FCT (2019) FCAFC 29, the court considered that the taxpayer was not a resident of Australia under the resides test.

3. Briefly explain how the payments received by the taxpayer in FCT v Dixon (1952) 86 CLR 540 were considered to be assessable as ordinary income in the absence of a direct nexus with employment.

4. The Division 30 ITAA97 deduction for donations that a taxpayer makes to a deductible gift recipient (DGR) has similar requirements to a general deduction under s 8-1 ITAA97 in that both types of deduction require a nexus with the production of assessable income.

5. It is apparent from case law decisions on whether a taxpayer is carrying on a business that a profit-making intention is an important indicator of business. It follows that if the taxpayer's activity is recording losses in the early years of operation, there cannot be a business until a profit is recorded in a later tax year.