Question
One of Hemis friends is studying taxation and suggests to Hemi that his vlogging activity is a business for income tax purposes. Hemi laughs at
One of Hemis friends is studying taxation and suggests to Hemi that his vlogging activity is a business for income tax purposes. Hemi laughs at this suggestion because he has no office from which he runs his vlog, he doesnt employ anyone, he doesnt even own a computer. He has never even bothered getting business cards printed either. Hemi says that his activity is just a hobby and the money he gets from MediaMega merely covers the costs of carrying on his hobby.
Explain whether Hemis activities described above would constitute a business for income tax purposes or whether it would be regarded as a hobby.
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