Explain for each of the following scenarios whether they are:

 

• Tax planning;
• Tax avoidance; or
• Tax evasion

and why.

Michael Brown is the sole director of Brown Pty Ltd. Brown Pty Ltd received consultant fees of $155,000 from ABC Ltd and the total fee earned for the tax year 2021/22 was $170,000. The consulting service was performed by Michael. ABC Ltd provided Michael an office and the required equipment.

(NOTE: please consider and provide a brief discussion regarding alienated personal services income.)

Answer rating: 100% (QA)

In accordance with the facts most likely Michael Brown and Brown Pty Ltd is a tax planning project briefly discussing the alienated personal services ... View the full answer