Explain for each of the following scenarios whether they are: Tax planning; Tax avoidance; or Tax
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Question:
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.)
Related Book For
Auditing The Art and Science of Assurance Engagements
ISBN: 978-0133098235
12th Canadian edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser
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