Which statement is INCORRECT? All individual taxpayers, regardless of whether they are residents or non-residents are liable for the 2% Medicare Levy. A police officer accepts a bribe of $500 (which is illegal) must include the bribe in their assessable income. The Income Tax Assessment Act does not impose taxation. If an amount of assessable income is caught under both ordinary and statutory income, the specific (ie. statutory) provisions will apply. Which one of the following expenses is NOT deductible under the ITAA (1997)? The cost of purchasing and maintaining a nurse's traditional uniform, being a white uniform, cardigan and nonslip shoes. A speeding fine incurred by an Uber drive whilst driving a customer to the airport. Sunglasses, sunscreen and a hat worn by a builder whilst working outdoors. Business class airfares incurred by an accounting firm in sending one of their employees to an accounting conference in Adelaide. Economy class airfares were available, however, the employee wanted to travel in style, so their employer decided to pay the business class airfares instead. Which statement is INCORRECT in relation to the tax concept of 'derivation'? In the case of consulting income, income is when the cash is received, and not on the date of the invoice. In the case of a lay-by arrangement, the retailer selling the goods is required to recognise revenue when the buyer pays each instalment. In the case of revenue received in advance, the accruals basis of accounting is considered appropriate provided the amount received upfront is credited to a liability account and there is a possibility of refunds being provided to customers. In the case of smaller professional practices, the cash basis of accounting is considered to be the appropriate method for taxation purposes. Which of the following does NOT constitute assessable income? A reimbursement of $32 to an employee who used her car for work-related purposes. The employee travelled 40 kilometres and was reimbursed 80 cents per kilometre. Eric is a keen football follower. Each weekend he puts $10 bets on the football games using Sportsbet. In May 2023 , Eric wins an amount of $1,540. This is the fifth time this income year that he has won money betting on football games. A travel allowance received by an employee from their employer in relation to work-related trip to Melbourne for two days. A professional soccer player who wins the "man of the match" award of $1,000 for his best on ground performance. This is the first time he has won such an award. with a professional orchestra in Adelaide. Michael's wife and children do not accompany him to Australia but stay at the family home in South Africa. Michael brings his clothes, personal effects and a keyboard with him to Adelaide. He redirects his mail from South Africa to Adelaide. He opens a Westpac bank account so that his earnings can be deposited into. While in Australia, Michael enters into a 12-month tenancy of an apartment in Adelaide. He spends his week days rehearsing with the orchestra and going to the gym, and weekends performing concerts and playing the organ at a local church. His wife and children visit him over Christmas and they go on a short holiday to a beachside town. At the end of the 12 months, Michael returns to his family home in South Africa as he intended. Which statement is correct in relation to Michael's Australian residency status? Michael is a non-resident of Australia for tax purposes. Michael is a resident of Australia for tax purposes under the 183-day test. Michael is a resident of Australia for tax purposes under the domicile test. Micahel is a resident of Australia for tax purposes under the resides test