Tax Treatment of Lease Agreements

Lease agreements Over the years, leasing of assets have taken on many different names and forms – hire purchase agreements, lease to buy, operating lease, finance lease, multi-lease to name a few. Most times, the variations are used in relation to motor vehicles more than other assets. Financing Options Broadly speaking, there are three financing…

Changes to Lease Inducement Payments

When a landlord makes a payment in cash to induce a tenant into signing in to a lease, the payment is usually deductible to the landlord. Under the existing rules, a lease inducement payment received by the tenant is non-taxable. This was confirmed in a ruling by the Privy Council case in CIR v Wattie (1998)…