Advise a taxpayer, George on how he would be taxed on the prizes he received. Quantum Appliances manufactures electrical appliances which can be purchased direct from Quantum or from various large retailers. The appliances have a five$-$year warranty, but the warranty is only valid if installation, servicing and repairs are carried out by accredited Quantum sub$-$contractors.In March $2022,$ Quantum contacted all of its sub$-$contractors with news that there would be a prize given to the most valuable sub$-$contractor. This would be the individual who, by their work from July to December $2022,$ was judged to have made the greatest contribution to Quantums reputation and its business. In February $2023,$ George was judged to be the winner and his prize comprised:a cash prize of $$10,000$a family membership package for the Western Bulldogs Football Club, worth $$600.$ a $$1,000$ voucher for work tools from a hardware outlet, anda free consultation with a financial planner on $2023$ business income to maximise its tax benefits, worth $$3,000.$Advise by using Income Tax Assessment Act $1936($ITAA$36)$

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Answer Tax Implications of Georges Prizes under ITAA 1936 Heres a breakdown of how each prize compon... View the full answer