n SA Mercantile Law Journal = SA Tydskrif vir Handelsreg - Curbing income tax avoidance that results from cross-border leasing : a comparative overview with specific reference to South Africa
|Article Title||Curbing income tax avoidance that results from cross-border leasing : a comparative overview with specific reference to South Africa|
|© Publisher:||Juta Law Publishing|
|Journal||SA Mercantile Law Journal = SA Tydskrif vir Handelsreg|
|Affiliations||1 University of South Africa|
|Publication Date||Jan 2014|
|Pages||338 - 386|
Businesses often choose leasing instead of purchasing tangible assets or equipment such as industrial, commercial and scientific equipment. Indeed, over the last two decades the leasing of assets has become an important form of acquiring business assets or equipment internationally. Some of the commercial reasons for leasing instead of purchasing assets include the fact that in leasing arrangements, the lessee does not have to incur the burden of financing the equipment or bear the risks associated with the financing. There is thus no added liability to the balance sheet of the business, which makes it easier to increase its borrowing capacity. Leasing also makes it easier to replace assets regularly, thereby reducing the risks of obsolescence. It also enables the lessee to free working capital to finance current operations and other cash flow requirements.
Article metrics loading...