Deductions: sale and leaseback of land
ITA07/S681A-N and CTA10/S834-848
This legislation counters certain avoidance devices based on arrangements for the sale and leaseback of land or any interest in land.
There are two anti-avoidance rules which:
limit the deduction for payments under the lease to a commercial rent, and
deal with the situation where a lessee incurs additional rental liability for a comparatively short period in return for the payment of a lump sum.
This is the anti-avoidance legislation that used to be at ICTA88/S779.
For detailed instructions see BIM61300 onwards.