The lessor's assessable income includes the interest on the notional loan.

The lease payments to the lessor are non - assessable non - exempt income.

  Note:   If the consideration for a notional sale of a car exceeds the adjustable value of the car to the lessor, the excess will be included in the lessor's assessable income under section   40 - 285.

    There would be a similar result if the lessor is treated as having reacquired the car and then sells the car for more than the cost of reacquisition.