Julian and Jenna carry on a partnership business and for the income year ended 30 June, the partnership net income was $38,000, as returned by their accountant. However, included in the deductions was a salary of $12,000 paid to Julian's wife (who is not a business partner). The Commissioner disallows all but $2,000 of this amount.

a)Will Julian's wife be required to pay tax on $2,000, or $12,000, for the current income year. Why? (2.5 marks)