Question: lien is a sole trader and provides marketing services to...
Lien is a sole trader and provides marketing services to pharmaceutical
firms in Sydney. In the year 2018-19, Pharma & Pharma (P&P), a
pharmaceutical firm, paid Lien an amount of $55,000 for her services. P&P
has a tradition of awarding each year the best performer who contributes
significantly to raising its turnover. In 2018-19, P&P awarded Lien with a
non-transferrable free trip to London to watch the Wimbledon final. Citing
legislation and cases, advise Lien of the income tax consequences of the
payment and reward.