Question
Required: Discuss whether Ben received any ordinary income due to the following events (4 marks). Kirsty was a Chief Financial Officer (CFO) in a mining
Required: Discuss whether Ben received any ordinary income due to the following events (4 marks). Kirsty was a Chief Financial Officer (CFO) in a mining company. She was having issues with her boss (the CEO) who was bullying her and not giving her the bonuses that she was entitled to. Kirsty engaged a high-priced lawyer from a major law firm (Sally), but felt that the lawyer did not give her case as much attention as they gave their richer corporate clients. Kirsty would often spend a few hours a week speaking to her friend Ben over the phone. Ben had been friends with Kirsty for many years, and worked for the Victorian public service in a legal role (he was a qualified lawyer). These conversations were a combination of Ben offering her emotional support, and talking about Sallys strategies in her dispute with her boss. Based on Bens feedback, Kirsty would make some suggested strategies to Sally, which Sally at times put into action. After the matter had been settled with Kirsty getting a substantial payment from the mining company, Kirsty gave Ben a new 85 inch Sony TV (valued at $4000) with a card which said thanks for all of your help and support. Using Australian law (Sections ITAA1997)
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