Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 40.225

Adjustment: acquiring a car at a discount

  (1)   You must increase the first element of the cost of a * car designed mainly for carrying passengers you acquire at a discount if:

  (a)   it is reasonable to conclude that any portion (the discount portion ) of the discount is referable to you or another entity selling another asset for less than its * market value; and

  (b)   you, or another entity, has deducted or can deduct an amount for the other asset for any income year; and

  (c)   the sum of the cost of the car and the discount portion exceeds the * car limit for the * financial year in which you first use the car for any purpose.

  (2)   The first element of the cost of the * car is increased by the discount portion.

  (3)   This section does not apply to a * car that is excluded from the * car limit by subsection   40 - 230(2).


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