Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 240-115 Another person, or no person taken to own property in certain cases 240-115(1)
This section sets out special modifications of the effect of this Division that apply in relation to a *hire purchase agreement unless:
(a) the notional buyer would have been the owner or the *quasi-owner of the property if the *arrangement had been a sale of the property; and
(b) it is reasonably likely that the right, obligation or contingent obligation to acquire the property will be exercised by, or in respect of, the notional buyer.
Note:
An example of a contingent obligation is a put option.
240-115(2)
The modifications also apply if the *notional buyer:
(a) disposes of his or her interest in the property; or
(b) enters into a lease covered by Division 242 (about luxury car leases) under which he or she leases the property to another person.
Modifications
240-115(3)
For the purpose of the *capital allowance provisions, if, apart from the operation of this Division, an entity other than the *notional seller would own the property that is the subject of an agreement covered by this section, that entity is taken to be the owner of the property.
240-115(4)
For the purpose of the *capital allowance provisions, if, apart from the operation of this Division, the *notional seller would own the property that is the subject of an agreement covered by this section, no entity is taken to be the owner of the property.
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