Helen has been talking to Bob over the back fence from her place. Bob is a member of a steam restoration society that maintains a historic steam train and runs it on a short train line, charging passengers for the privilege of travelling. Generally the club has broken even. He said he did not file a tax return including this activity as it was in the nature of a hobby. Helen and Wendy want to know if their cake stall would be a hobby, and not taxable.
Required:
Prepare a short report, supported by case law, addressed to Helen and Wendy explaining what constitutes a hobby and explaining whether their cake stall is a hobby.