Posted: March 6th, 2014
Alex is a tax resident of Australia. He is employed as a mechanic at Fix-A-Car Pty Ltd with a salary of
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$60,000 pa. In the course of his employment Alex received a car allowance of $5,000 and
reimbursement of $200 for parking expenses for the tax year ended 30 June 2012.
In the weekends Alex repairs automobiles in his workshop in his house’s backyard to supplement his
income. His close relative Tony usually bring his car to Alex’s home for servicing every month. Being
a close relative to Alex, he did not to charge Tony for all the work done. Tony who loves gardening in
return does Alex a favour by maintaining Alex’s garden every weekend.
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