Awan Hammad

    Hi SP

    Yes, if the containers are leased to a related party they will be in-house assets and subject to the 5% threshold.

    Business real property is defined in section 66 of SIS as:

    “business real property”, in relation to an entity, means:

    (a) any freehold or leasehold interest of the entity in real property; or
    (b) any interest of the entity in Crown land, other than a leasehold interest, being an interest that is capable of assignment or transfer; or
    (c) if another class of interest in relation to real property is prescribed by the regulations for the purposes of this paragraph–any interest belonging to that class that is held by the entity;

    where the real property is used wholly and exclusively in one or more businesses (whether carried on by the entity or not), but does not include any interest held in the capacity of beneficiary of a trust estate.”

    A container will not be considered to be business real property.

    The Auditors Institute


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