Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 242-25 Notional loan by lessor to lessee 242-25(1)
This Act has effect as if, on the grant of the lease, the lessor had made a loan (the notional loan ) to the lessee:
(a) for a period equal to the term of the lease (not including the term of any extension or renewal); and
(b) of an amount (the notional loan principal ) equal to the consideration for the notional sale of the *car less any amount paid, or credited by the lessor as having been paid, by the lessee to the lessor, at or before the start of the term of the lease, for the first element of the *cost of the car to the lessee; and
(c) subject to payment of interest.
Note:
There is a further notional loan if the lease is extended or renewed: see section 242-80 .
242-25(2)
This Act has effect as if the notional loan principal were repaid, and the interest were paid, by the making of the *luxury car lease payments.
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