Deferred Tax on Finance Lease
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Deferred Tax on Finance Lease
Lam Fai Mon Dec 15, 2008 5:31 pm
Co. A (Lessor) enter into a lease agreement with Co. B (Lessee),
to lease a PPE costing $100 over 5 years in return for $25 rental per yr.
Assumes,
- it is a finance lease.
- Co. A can keep on claiming the Dep't All'
- tax rate = 20%.
- no anti-avoidance legislation on leasing in our discussion
Wt is the DT implication ?
In my opinion, it seems to be a permanent difference... and no DT implication.
While Billy's notes mention sth on it
to lease a PPE costing $100 over 5 years in return for $25 rental per yr.
Assumes,
- it is a finance lease.
- Co. A can keep on claiming the Dep't All'
- tax rate = 20%.
- no anti-avoidance legislation on leasing in our discussion
Wt is the DT implication ?
In my opinion, it seems to be a permanent difference... and no DT implication.
While Billy's notes mention sth on it
Lam Fai- Posts : 26
Join date : 2008-12-05
Age : 38
Location : Kwun Tong
QP Deloitte :: QP :: QP Q&A Section :: MA
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