Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 242 - Leases of luxury cars  

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

Operative provisions

SECTION 242-85  

242-85   What happens if an amount is paid by the lessee to acquire the car  

If, at the end of the lease or, if it is extended or renewed, at the end of any extension or renewal (the end time ), an amount is paid to the lessor by, or on behalf of, the lessee to acquire the *car, the following provisions have effect:

(a) the amount paid is not included in the lessor ' s assessable income;

(b) the lessee cannot deduct the payment;

(c) this Act has effect as if:

(i) the lessee continued to be the owner of the car until the lessee disposes of it; and

(ii) the transfer to the lessee of legal title to the car were not a disposal of the car by the lessor.