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Mahmood and Fawlty carry on a partnership. Gross income for the current income year is $40,000, of which $8,000 is made on sales outside Australia
Mahmood and Fawlty carry on a partnership. Gross income for the current income year is $40,000, of which $8,000 is made on sales outside Australia (for which no expenses are incurred). Business expenses of $25,000 include a salary paid to Mahmood of $5,000. All expenses relate to Australian source income.
Required:
Calculate the taxable income of:
1. Mahmood, assuming he is a resident; and
2. Fawlty, assuming he is a non-resident.
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