Mabel, aged 60, is a senior scientist who has worked for Epson Pharmaceuticals Ltd (Epson) for 25-years. Mabel is a highly valued specialist in cancer drugs. Mabel has indicated that she is considering retiring after working so hard for so many years. Recently however, Mabel has received two job offers, at a higher salary, from two of Epson's competitors. After receiving these offers, Mabel indicates that retirement for her is "some time off. Epson is worried about Mabel working for competitors, and particularly, Mabel bringing her extensive knowledge to the research effort of competitors. Accordingly, Epson enters the following arrangement with Mabel: In return for a lump sum payment of

S 180,000, Mabel agrees not to work for any of Epson's competitors in the area of cancer drug research for three and a half-years after leaving the employment of Epson. The payment is made immediately (i.e. while Mabel is still working for Epson).

From the above facts, which of the following is most correct in respect to Mabel?

O a. The S 180,000 is income because if Mabel had not worked hard for all those years for Epson, she would not have got the payment.

O b. The S 180,000 is income and included in assessable income under s 6-5 because the restriction is less than 5-years.

O c. The S 180,000 is income and included in assessable income under s 6-5 because it would be taxed as a capital gain (CGT event D1)

under the CGT regime

O d. The S 180,000 is a capital receipt (not income) because the restriction is a genuine and substantial restriction on the income-producing activity otherwise available to Mabel.