Originally Posted by
Sunfish
GB, Australia’s weird depreciation tax rules make it economical to keep refurbishing old aircraft. Buying new is a capital expenditure, buying parts just gets expensed. The ATO has no idea.
Buying an aircraft and bringing it on balance sheet also changes gearing ratios.
When "incentivised" insiders have self interest at stake, short term incentives (bonus) often can distort the decision making framework.