Jeffery used to work for Beqa Island Resort 2 years ago. He had recently won $10,000 dollars in a television show called Dominoes Gold. Jeffery consults his tax agent and is advised that such receipts are tax free. After one year Jeffery decides to invest this money in money laundering scheme which gives him $50,000 in profit. He consults his tax agent again and is advised that he may be liable to pay tax on such a lump - sum gain. Consequently, Jeffery contacts his former Boss at Beqa Island Resort and conspires to organize his farewell party. He comes with a agreement whereby the $50,000 lump - sum gain will be distributed to the present 100 employees. All these employees will be invited to Jeffery’s farewell party where they will grant $500 each as a gratitude payment to Jeffery.

Question:

Evaluate Jeffery’s conspiracy with respect to taxation.

Answer rating: 100% (QA)

Solution Jeffery had recently won 10000 dollars in a television show called Dominoes Gold And ... View the full answer