Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 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.

Table of sections

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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