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Lease cost in Co’rp tax

This topic has 3 replies, 2 voices, and was last updated 3 years ago by Tax Tutor.

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March 1, 2022 at 6:49 am #649534
Sourav9271
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https://photos.app.goo.gl/aNUp1oJeVyTFiBud9
Sir,
Is it a rule to multiply ×15% of lease cost..
And Sir why is the lease expense on first car ignored.?
Can you pls give me reference in textbook or lectures about this topic.
I couldn’t recollect it.
March 2, 2022 at 10:24 am #649630
Tax Tutor
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I assume you are taking the exam this month as this question appears to be based on FA 2020 – if you look at the FA 2020 Study Notes – Chapter 4, Section 2.2 note (i) at the top of page 23 you will see the answer.
This issue was also discussed in the relevant lecture
March 2, 2022 at 12:27 pm #649641
Sourav9271
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Okay sir,
I just referred
So effectively we can deduct full car leasing expenses unless the Co2 emission exceed 110g/m.
Herein too we can initially deduct full expenses however simultaneously Lease×15% needs to be added to profit as a charge…
Am I correct?
March 4, 2022 at 11:00 am #649801
Tax Tutor
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In the adjustment of profit as the note informs – you simply add back 15% of the lease hire charge if the car has the higher level of CO2 emissions
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