Issue
Is the income received by a medical practitioner for providing assistance in operations, assessable pursuant to section 6 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Decision
Yes. The income received by a medical practitioner for providing assistance in operations is assessable pursuant to section 6 of the ITAA 1997?
Facts
The taxpayer is a medical practitioner who provides assistance on a limited basis at surgical operations. This assistance is provided on an irregular basis.
Reasons for Decision
Ordinary income is defined by subsection 6-1(1) of the ITAA 1997 to mean 'income according to ordinary concepts'. Assessable income consists of ordinary income and statutory income, although an amount of ordinary income or statutory income will not be assessable income if the amount is made exempt or is otherwise excluded from assessable income.
The amounts received for the assistance provided by the taxpayer, even though on a limited basis and irregularly, are nonetheless earnings from the performance of a service and therefore constitute income according to ordinary concepts. Accordingly the income so derived is assessable in the hands of the taxpayer.