Newth Talks Tax - Is this taxable income?
Is this taxable income?
John R, like many accountants, has had business dealings with an independent financial adviser, and in the past has received commissions in respect of the introduction of clients. These commissions have been treated as income and taxed accordingly.
Recently John R used the financial adviser to arrange a new pension for himself personally. The financial adviser waived the commission received on the policy, and offered two choices. One choice was for an amount equivalent to the commission to be invested in increasing John R’s pension fund.