Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 240.115

Another person, or no person taken to own property in certain cases

  (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.

  (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

  (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.

  (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.

Table of Subdivisions

  Guide to Division   242

242 - A   Notional sale and loan

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

242 - C   Deductions allowable to lessee

242 - D   Adjustments if total amount assessed to lessor differs from amount of interest

242 - E   Extension, renewal and final ending of the lease


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