a) Discuss with reference to appropriate legislation, case law and/or rulings whether X & Y are carrying on a business for taxation law purposes in either the 2015 or 2016 income years.
b) Discuss with reference to appropriate legislation, case law and/or rulings whether any amounts received in relation to the sale of the design are ordinary income in the 2016 income year
c) Briefly discuss with reference to appropriate legislation, case law and/or rulings whether the cash or accruals basis of accounting would apply to X & Y

 

 

 

 

 

 

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