25 April 2005 Internal T.I. 2004-0108301I7 F - Coût d'une automobile -- summary under Subsection 49(3)

The cost (for purposes of C of the standby charge formula under s. 6(2)) of an automobile acquired by the employer at the end of its lease pursuant to exercise of bargain purchase option was increased under s. 49(3) by the portion of each preceding lease payment that was to be reasonably treated as an option premium, i.e., that “could be considered as a payment in respect of the right to purchase the property in the future.”