When George is hired as a hairdresser, one of the terms of his employment is that, if he resigns… 1 answer below »

When George is hired as a hairdresser, one of the terms of his employment is that, if he resigns or is sacked, he will not compete with the hairdressing salon for a period of five years and within a radius of five kilometers. In return for agreeing to the restriction, George is paid a lump sum of $15,000.Is George assessable on this amount? Would it make any difference if:
(a) instead of the lump sum, he was paid a weekly salary increase of $45?
(b) a lump sum amount is paid to George in consideration of his refraining from resigning from his employment?

 

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