Fe Technology Pty Ltd is a client of your firm. The director. Finnigan O'Brien has come to you for advice regarding the following issues in relation to his business. The company recently hired a new employee from India (before international travel was banned). Because of that person's skills and expertise the company entered into a restraint of trade agreement with the employee whereby he would be paid $100,000 provided he did not leave the company for three years. What are the tax consequences for the employee? Use relevant case law and legislation in NSW, Australia to justify your answer.

Answer rating: 100% (QA)

Tax Consequences for the Employee The restraint of trade payment of 100000 would be considered to be an income payment for the employee and would be t... View the full answer