Than in cash the money value of that consideration

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than in cash, the money value of that  consideration shall be deemed to have  been paid or given Non-cash business Non-cash business     benefits –  benefits –  s 21A ITAA36 s 21A ITAA36 § A non-cash business benefit that is not  convertible into cash is treated as if it  were convertible into cash § The value brought to account is: § The arm’s length value of the benefit
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§ Disregarding conditions preventing  conversion § Reduced by the contribution made by  the recipient § Value is reduced to the extent that:  § Recipient would otherwise be entitled  to deduction § It is “non-deductible entertainment  expenditure”  § Income is exempt where total non-cash  business benefits for the year does not  exceed $300 Categories of income Categories of income Rewards for services and Rewards for services and     payments incidental to payments incidental to     employment employment
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§ Rewards for services are generally  income: § Payment for granting interviews  ( Brent ) § Voluntary payments related to  professional activities may be income: § Collections received from the crowd  by a professional cricketer for  “meritorious performances”  ( Moorhouse v Dooland) § Payments made by third parties that are  “incidental” to employment may be  income: § Cash award received from a TV  station by “best and fairest” player in  a football league ( Kelly ) Substitutes for income Substitutes for income § Payments that substitute or supplement  income may constitute income:
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§ Supplementary payments from former  civilian employer to “make up”  difference between civilian and  military wage ( Dixon ) Personal gifts Personal gifts § Payments that are traced to some  personal relationship between the payer  and the recipient are generally not  income: § Receipt of shares by an accountant  from a friend who was his former  employer ( Hayes § Money received by a solicitor from a  former client as a personal gift ( Scott ) Payments for relinquishing Payments for relinquishing     rights and entering rights and entering     restrictive covenants restrictive covenants
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§ Amounts for relinquishing personal  rights are usually capital: § Payment received by a rugby player  for giving up amateur status ( Jarrold v  Boustead ) § Payments for entering into restrictive  covenants are usually capital: § Money paid to actor under an  agreement restricting his right to work  ( Higgs v Olivier ) Payments for entering Payments for entering     trade-tie arrangements trade-tie arrangements § Payments under trade-tie arrangements  that constrain the way that a taxpayer  conducts business are usually capital: §
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  • Fall '09

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