Income tax: installation costs of leased equipment
Please note that the PDF version is the authorised version of this ruling.This document has been Withdrawn.View the Withdrawal notice for this document.
FOI status:may be releasedFOI number: I 1100774
2. As a general proposition, expenditure incurred by a lessee in installing leased equipment is considered to be of a capital nature and, as such, would not be deductible for income tax purposes. In addition, no deduction would be allowable by way of depreciation in respect of such expenditure.
3. Where, however, the expenditure brings into existence separate items of plant or articles owned by the lessee-taxpayer then, provided the other requirements of section 54 of the Income Tax Assessment Act are met, depreciation would be allowable in respect of the plant and articles.
Commissioner of Taxation
1 April 1981