Private ruling: Offshore Banking Unit - hire purchase agreement
Published: September 2015
Ruling period: Years ending XX/XX/XXXX to XX/XX/XXXX
Date scheme commenced: XX/XX/XXXX

Ruling: Q1: Is the loan under Division 240 of the Income Tax Assessment Act 1997 ('ITAA 1997') as a result of entering into the Lease an "OB activity" of the company within the meaning of paragraph 121D(1)(a) of the Income Tax Assessment Act 1936 ('ITAA 1936'), by virtue of being a "lending activity" as described in subsection 121D(2) of the ITAA 1936? | A1: Yes | Q2: Will any amounts that are assessable income for the company under Division 240 of the Income Tax Assessment Act 1997 ('ITAA 1997') in respect of the Lease arrangement constitute "assessable OB income" of the company, as defined in subsection 121EE(2) of the ITAA 1936, where none of the money used by the company in respect of the Lease arrangement (including the payment of the Purchase Price) is non-OB money of the company? | A2: Yes | Q3: Will any amounts that are deductible for the company under Division 240 of the ITAA 1997 in respect of the hire purchase lease arrangement constitute "exclusive OB deductions", as defined in subsection 121EF(3) of the ITAA 1936, where none of the money used by the company in respect of the hire purchase lease arrangement (including the payment of the Purchase Price) is non-OB money of the company? | A3: Yes

Relevant facts and circumstances: The taxpayer, an OBU, applied for a ruling in relation to a hire purchase agreement in entered into as lessor. Relevant facts and documents were submitted.

Relevant legislative provisions: Income Tax Assessment Act 1936 paragraph 121D(1)(a) | Income Tax Assessment Act 1936 subsection 121D(2) | Income Tax Assessment Act 1936 section 121EDA | Income Tax Assessment Act 1936 subsection 121EE(2) | Income Tax Assessment Act 1936 subsection 121EF(3)