Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-10
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FINANCIAL TRANSACTIONS
Division 242
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Leases of luxury cars
Subdivision 242-A
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Notional sale and loan
Guide to Subdivision 242-A
SECTION 242-5 242-5 What this Subdivision is about
View history note
Hide history noteSECTION 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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