Income Tax Act 2007 section 614C

Introduction to Chapter

Section 614C introduces the Chapter and defines which leasing arrangements fall within its scope.

• The Chapter applies to arrangements involving the lease of an asset that are treated as a finance lease or loan under generally accepted accounting practice
• Arrangements already covered by Chapter 2 are excluded from this Chapter
• It does not matter whether the parties to the arrangements are companies, individuals, or other types of entity
• The key test is the accounting treatment: if the lease is classified as a finance lease or loan under GAAP, this Chapter may apply