Malik has an office in Elizabeth Street in Melbourne. He has an interest in Museums and history. In 2011, he purchased 30,000 share certificates, which were from 1920's and more than 70 years old from a Garage Sale. These certificates were related to old companies that do not exist anymore. The total cost was $300. Malik thought that, he will frame it as they could be marketable as decorative feature to hang in the office. In November 2016, he mentioned the matter to Andrew, a local antique dealer and picture framer. Andrew suggested that, if it is properly framed, they could sell for $20,000 each. The cost would be $10 per certificate. Andrew agreed to sell the items on the commission basis of 10%. Each certificate was thus sold for $20,000 resulting in a huge profit to Malik.

Required:

Part A

Explain whether the old share certificates purchased by Malik are antiques or collectables? Support your answer with legal principles, case laws and legal precedents.

Part B

Is the income earned by Malik from collectibles assessable or not? What is his assessable income and his tax liability? Highlight legal principles, case laws and legal precedents.

(7.5 Marks + 7.5 Marks = 15 Marks)