Bob was an employee truck driver for a large freighting company. His wife, Jane worked in the same company providing administrative support. Bob decided to quit his job and start his own freighting business. He and Jane register a business jointly. In the new business, Bob receives payment for his services by cheque made payable to him personally. He banks these cheques in a joint account held with Jane. Jane occasionally answers telephone calls and fills in road tax forms but makes no other contribution towards the income-producing activities.

Are Bob and Jane in a partnership for tax purposes? Explain your answer with reference to case law and the relevant provisions of the ITAA36 and/or ITAA97 together with any ATO administrative guidance.

Answer rating: 100% (QA)

Bob and jane are unlikely to be partnering in the business In this case ... View the full answer