Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
| 19(1) |
File No. 5-8056 |
| |
Peter Lee |
| |
(613) 957-2745 |
July 4, 1989
Dear Sir:
Re: Lease
We are writing in reply to your letter of May 10, 1989, wherein you requested our opinion with respect to a "lease" with a "guaranteed residual value" clause.
Whether a transaction is a lease or a disposition for purposes of the Income Tax Act depends on the actual legal rights and obligations of the parties involved in the transaction, and not merely on the intention of the parties. If the conditions of an agreement are similar to those in paragraph 3(b) of IT-233R, the agreement is generally not considered to be a lease. IT-233R is under review by the Department, but it remains effective until it is revised or cancelled.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate
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© Her Majesty the Queen in Right of Canada, 1989
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© Sa Majesté la Reine du Chef du Canada, 1989
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