VDSE are also currently licencing one of their manufacturing methods to Globo-Tech Ltd. VDSE are currently receiving a fixed fee of $10,000 per month from Globo-Tech Ltd for the right to use the manufacturing method. She is interested to know how these payments might be assessed.

Issue

Whether the $120,000 per year from Globo-Tech Ltd for the right to use the manufacturing method is assessable as statutory income under section 15-20 ITAA97

is it statutory income or ordinary income under s 6-5 please explain to me as s 15-20 is rarely used and i'm confused as to how to answer this question.

Answer rating: 100% (QA)

Question There must be clarity between the license fees agreement and the service agreement between ... View the full answer