Question 3: Income According to Common Law Principles Carl operates a small automotive repair business in Petone. His business is run from a small building which he owns near Petone Railway Station. The owners of the next door property have approached Carl seeking his agreement to allow them to erect a large multi story building on their site. His agreement is necessary under the Resource Management Act as the proposed building is bigger than permitted by the district plan. Carl has reviewed their plans and feels that the new building will shade his garage which might reduce its market value especially its potential as a redevelopment site. He indicates them that he will only grant permission if they agree to pay him $50,000 and to provide a binding undertaking that the ground floor premises will not be used as a motor repair facility which would be in competition with his business. Required: Would this $50,000 be taxable to Carl under section CA 1(2)?

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