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Assignment help 718

Sheri had been employed for 5 years as the manager of a radio station, prior to the sale of the radio station to new owners. Her salary had been $80,000. In addition she had been paid a 10% bonus on the gross revenue of the radio station. The new owners did not want to provide remuneration via the bonus system. They negotiated a new arrangement with Sheri – a higher salary and a one-off amount of $100,000 (to be paid in 3 instalments).  Explain the income tax consequences of the new arrangement for Sheri. Use one (1) section of relevant legislation and one (1) case to support your explanation.         


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