Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 242-35 Amount to be included in lessor ' s assessable income
Accrual amounts
242-35(1)
The lessor ' s assessable income for an income year includes:
(a) if a *luxury car lease payment period for the lease of a *car occurs wholly during that income year - the amount (an accrual amount ) worked out under subsection (2) for that luxury car lease payment period; and
(b) if part of a luxury car lease payment period for the lease of a car occurs during that income year - so much of the amount (also an accrual amount ) worked out under subsection (2) for that luxury car lease payment period as may appropriately be related to that income year in accordance with generally accepted accounting principles.
242-35(2)
The amount is:
| Outstanding notional loan principal
at the start of the lease payment period |
× | Implicit interest rate |
where:
implicit interest rate
is the implicit interest rate under the lease for the *luxury car lease payment period, taking into account the payments to be made by the lessee under the lease and any *termination amounts.
outstanding notional loan principal at the start of the lease payment period
is:
(a) the sum of the notional loan principal and the accrual amounts for earlier *luxury car lease payment periods; less
(b) the sum of the *luxury car lease payments that the lessee was required to make before the start of the relevant luxury car lease payment period.
Excessive periods
242-35(3)
If, apart from this subsection, a *luxury car lease payment period for the lease of a *car would exceed 6 months, this Division applies as if each of the following were a separate luxury car lease payment period:
(a) the first 6 months of the original luxury car lease payment period;
(b) if the original luxury car lease payment period was not longer than 12 months - the remaining part of the original luxury car lease payment period;
(c) if the original luxury car lease payment period was longer than 12 months - each successive 6 month period in the original luxury car lease payment period;
(d) the period (if any) after the end of the last of the periods to which paragraph (c) applies.
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