Question 2 Part A Issue The main issue of this case scenario is the poor health recovery evident within Alex post medical operation that resulted in Alex suing the doctor and his insurance company who provided Alex with a compensation amount of "$200,000". Thus, the issue regarding consideration of this amount as an "assessable income" or not arises in this case scenario Rules As per the principles of "Income Tax Assessment Act 1997" implemented by the Australian government any lump sum compensation amount received by an individual from a healthcare professional against personal injury caused due to the negligence of the healthcare professional is not considered as an "assessable income" (Legislation.gov.nu, 2021). Application These compensation amounts are considered tax-free due to the utility of the amount for medical benefits of the person recerving personal injury caused by medical negligence The section 23 and 25 of the Federal ad" mention the legal grounds for not deducting any tax amounts from the amount received by individuals from any other individual or entity as competisation for medical negligence as while confirming the utilitation of the amount solely for medical recovery purpose Ato pov ma 2021). The case scenario of "Ash Federal Commissioner of Tecution highlighted the motion of tax amounts over the defendunt fee masusing the compensate amounts recensed through stilizing it for purposes other than the purpose regarding which the money was distributed Ceocasion Thus, the "5200,000 amount might not be considered assable income for "Alex and Ad to be mposed with actions only under the condition of the station of them for the te purpose och 24 hour care rangement for Alex in the come years Part Question 2 Part A Issue The main issue of this case scenario is the poor health recovery evident within Alex post medical operation that resulted in Alex suing the doctor and his insurance company who provided Alex with a compensation amount of "$200,000". Thus, the issue regarding consideration of this amount as an "assessable income" or not arises in this case scenario Rules As per the principles of "Income Tax Assessment Act 1997" implemented by the Australian government any lump sum compensation amount received by an individual from a healthcare professional against personal injury caused due to the negligence of the healthcare professional is not considered as an "assessable income" (Legislation.gov.nu, 2021). Application These compensation amounts are considered tax-free due to the utility of the amount for medical benefits of the person recerving personal injury caused by medical negligence The section 23 and 25 of the Federal ad" mention the legal grounds for not deducting any tax amounts from the amount received by individuals from any other individual or entity as competisation for medical negligence as while confirming the utilitation of the amount solely for medical recovery purpose Ato pov ma 2021). The case scenario of "Ash Federal Commissioner of Tecution highlighted the motion of tax amounts over the defendunt fee masusing the compensate amounts recensed through stilizing it for purposes other than the purpose regarding which the money was distributed Ceocasion Thus, the "5200,000 amount might not be considered assable income for "Alex and Ad to be mposed with actions only under the condition of the station of them for the te purpose och 24 hour care rangement for Alex in the come years Part