For each of the independent events listed below, state what amounts, if any, would be assessable income.
Question:
For each of the independent events listed below, state what amounts, if any, would be assessable income. Support your conclusion with brief references to case law and/or sections of the ITAA 1936 or ITAA 1997 where appropriate:
i) Julia has been awarded a scholarship of $20,000 per annum from the Twiggy Forest Philanthropy Foundation which is to help her complete PhD research in earth science. The Twiggy Forest Philanthropy Foundation imposes no conditions on the scholarship other than to help support the advancement of knowledge into earth science.
ii) Eileen is employed as a salesperson by a large national car dealership. At their annual awards night, Eileen was nominated “Top Salesperson of the Year” by the dealership and received a cash prize of $5,000.
Financial Management for Decision Makers
ISBN: 978-0138011604
2nd Canadian edition
Authors: Peter Atrill, Paul Hurley