Hire-purchase valuation for depreciation: initial payment may be included where ownership price is determined on option exercise.

In hire-purchase valuation for depreciation purposes, the Tribunal's remand direction was consistent with the Supreme Court rule that the vehicle's price should be determined on the date the hirer exercises the option and becomes owner. On that basis, the method adopted could be applied by the sales tax authorities according to the facts and circumstances of the case. The initial payment was therefore properly included in the amount on which depreciation was to be allowed.

---

---

Issues: Whether, in the facts and circumstances of the case, the Tribunal was justified in directing the initial payment to be included in the amount on which depreciation is to be allowed.

Analysis: The Tribunal's remand guideline on valuation of hire-purchase vehicles was found to be in conformity with the rule stated by the Supreme Court in determining the price of the vehicle on the date the hirer exercises the option and becomes owner. The applicable method was one which the sales tax authorities could adopt on the facts and circumstances of the case.

Conclusion: The Tribunal was justified in directing the initial payment to be included in the amount on which depreciation is to be allowed.

---