35‑55 Hire purchase agreements35‑55 Hire purchase agreements

35‑55 Hire purchase agreements

(1) An amount of expenditure is excluded expenditure to the extent that it relates to a *hire purchase agreement. (2) However, if an amount of expenditure is excluded expenditure for a miner under subsection (1) in relation to a *hire purchase agreement: (a) the miner is taken to have incurred the amount mentioned in subsection (3) at the earliest time at which the property is *supplied to the miner under the agreement; and (b) the miner is taken to have acquired the property for that amount at the time the amount is incurred; and (c) the amount is not excluded expenditure under subsection (1) or section 35‑50. (3) For the purposes of paragraph (2)(a), the amount is: (a) if an amount is stated to be the cost or value of the property for the purposes of the agreement, and the miner and the hirer were dealing with each other at *arm’s length in connection with the agreement—the amount so stated; or (b) otherwise—the amount that could reasonably have been expected to have been paid by the miner for the purchase of the property if: (i) the hirer had actually sold the property to the miner at the start of the agreement; and (ii) the hirer and the miner were dealing with each other at arm’s length in connection with the sale.

Note: The amount may be mining expenditure under this Division.