Introduction Overview Overview Section 887: When restrictions on leasing partnership losses under this Chapter apply
2628.This section sets out the circumstances in which the restrictions on the use of losses in section 888 apply. It is based on sections 785ZA(1) to (4) and 785ZB(1) and (2) of ICTA.
2629.The restrictions apply where a company carries on a “business of leasing plant or machinery” in partnership and the company’s profit sharing arrangements are unusual. Subsection (1)(e) achieves this by providing that the restrictions only apply if the profit sharing arrangements are not determined “on an allowable basis” as defined in subsections (2)to (4).
2630.“Business of leasing plant or machinery” has the same meaning as it has for the purposes of Chapter 4 of Part 9 (see subsection (5)).