Income Tax Assessment Act 1997



Division 242 - Leases of luxury cars  

Subdivision 242-A - Notional sale and loan  

Guide to Subdivision 242-A

SECTION 242-5   242-5   What this Subdivision is about  

A leased luxury car is treated for income tax purposes as if it had been sold by the lessor to the lessee for the car ' s market value. The lessor is treated as having lent the lessee the money to buy the car, and the lease payments are treated as payments of the principal and interest on that notional loan.

Operative provisions
242-10 Application
242-15 Notional sale and acquisition
242-20 Consideration for notional sale, and cost, of car
242-25 Notional loan by lessor to lessee


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