In Which of the Following Situations Does the Taxpayer Have

question 29

Multiple Choice

In which of the following situations does the taxpayer have a claim of right to the payment received? Ellen is on the Carlyle city council. She accepts $5,000 from a contractor who is seeking I. II. rezoning of his land before the commission on the condition that Ellen supports the rezoning. The payment is illegal under state law and Ellen will have to repay the $5,000 if the arrangement with the contractor is discovered. Alan's automobile is damaged in an automobile accident. Because he uses the automobile in his job, his employer gives him $4,000 to have the car repaired. The employer will withhold $100 per paycheck until the $4,000 is repaid.

• A) Only statement I is correct.
• B) Only statement II is correct.
• C) Both statements are correct.
• D) Neither statement is correct.

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Definitions:

Suing

The act of bringing a legal action against an individual or entity to enforce a right or seek a remedy for a grievance.

Court

A governmental institution where legal disputes are resolved by a judge or a jury.

Courts in Canada

The judiciary system in Canada, which includes various levels of courts such as the Supreme Court of Canada, provincial, and federal courts.

Law of Equity

A body of law that provides remedies and justice not available or insufficient in common law, focusing on fairness and morally sound judgments.