1. X is employed by a large company with offices at different locations around Fiji and other Pacific Island countries. The company occasionally requires employees to shift their place of employment. The company operates a housing scheme under which a married employee selling his family home because of relocation will be indemnified by the company for any capital loss suffered from the sale of the home. The scheme is restricted to married workers. The company’s declared objective in operating the scheme is to relieve any employee anxiety about incurring financial hardship where relocation coincides with a falling property market. X is required by the company to relocate from the Suva office to the Nuku’alofa office. X sells his family home in Suva and suffers a capital loss of $5,000. Per the housing scheme, the company pays X $5,000. Does this receipt constitute income?

2.X is a public servant. His hobby is fishing. Monday to Friday X goes to the office. Saturday he goes fishing in his small fishing launch. Last Saturday the fish were biting. X caught many fish, far too many to eat himself, even more than his sister’s family could possibly eat. After returning to shore X strung his surplus fish on a pole by the roadside. Passing motorists stopped and bought the fish. X’s sale receipts totalled $300. Do these receipts constitute income?

Answer rating: 100% (QA)

1 Yes the receipt of 5000 from the company would constitute income ... View the full answer