INCOME TAX ASSESSMENT ACT 1997 - SECT 242.35 Amount to be included in lessor's assessable income
INCOME TAX ASSESSMENT ACT 1997 - SECT 242.35
Amount to be included in lessor's assessable income(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.
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.
(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.