Donna is 18 years old and a full time accounting student. She is saving for an overseas holiday and works part time at a major department store. Two months before her planned trip she finds she still needs $5,000. Her father employs her for four weeks as an office assistant in his busy accounting practice. He pays her $5,000 for this work. The other office assistant receives $500 per week.

Discuss the tax implications for both Donna and her father as to the amounts received and amounts paid.

Answer rating: 100% (QA)

Reference to the legislation case laws S7020 nonarms length transactions ... View the full answer