Taxation Ruling

IT 2105W - Notice of Withdrawal

Motor vehicle depreciation limit - lease finance companies - finance or actuarial method of accounting for lease income

  • Please note that the PDF version is the authorised version of this ruling.

FOI status:

may be released


Taxation Ruling IT 2105 is no longer current and is therefore withdrawn.

By virtue of Taxation Ruling IT 2594, the assessable income from all chattel leasing transactions entered into from 1 July 1990 must be calculated on the asset method. The finance or actuarial method of calculating assessable income is not acceptable for chattel leasing transactions, including transactions involving motor vehicles subject to section 57AF of the Income Tax Assessment Act 1936, entered into on or after that date.

The Full Federal Court in FC of T v Citibank Limited & Ors 93 ATC 4691; (1993) 26 ATR 423, held that the finance or actuarial method of returning chattel lease income is incorrect for income tax purposes.

Commissioner of Taxation
25 June 1997


ATO references:
NO NAT 97/1896-6

ISSN 0813 - 3662

Related Rulings/Determinations:

IT 2105
IT 2594

Legislative References:

Case References:
FC of T v Citibank Limited & Ors
93 ATC 4691
(1993) 26 ATR 423