Income Tax Act 2007 section 614AC

Rental earnings

Section 614AC defines what "rental earnings" means for the purposes of the finance leasing rules, explaining how this amount is calculated by reference to generally accepted accounting practice.

• Rental earnings represent the gross return on investment recognised under a finance lease or loan arrangement for a given period
• The definition applies to both individual persons and consolidated group accounts
• The amount must be determined in accordance with generally accepted accounting practice (GAAP)
• The meaning of "for accounting purposes" is further explained in section 614DG