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Edited version of private advice
Authorisation Number: 1051584641939
Date of advice: 26 September 2019
Ruling
Subject: Application of section 40-40 of the Income Tax Assessment Act 1997
Question
Will the Lessee 'hold' (within the meaning given by section 40-40 of the Income Tax Assessment Act 1997)the depreciating assets leased from the Lessor under Lease 1, Lease 2 and Lease 3?
Answer
Yes
Relevant facts and circumstances
The taxpayer (the Lessee) applied for a private ruling on the tax consequences, pursuant to section 40-40 of the Income Tax Assessment Act 1997, arising from an arrangement involving the divestment of a commercial operation.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 40-40