INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 242 - Leases of luxury cars  

Subdivision 242-B - Amount to be included in lessor ' s assessable income  

Guide to Subdivision 242-B

SECTION 242-30   242-30   What this Subdivision is about  


The lessor ' s assessable income includes the interest on the notional loan.

The lease payments to the lessor are non-assessable non-exempt income.

Note:

If the consideration for a notional sale of a car exceeds the adjustable value of the car to the lessor, the excess will be included in the lessor ' s assessable income under section 40-285 .

There would be a similar result if the lessor is treated as having reacquired the car and then sells the car for more than the cost of reacquisition.


TABLE OF SECTIONS
TABLE OF SECTIONS
Operative provisions
242-35 Amount to be included in lessor ' s assessable income
242-40 Treatment of lease payments


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