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30 Leasing - Coggle Diagram

- - - - PC > 150k
        
        dedn restricted to RM50k
      - PC <= 150k
        
        dedn restricted to RM100k
      - does NOT apply for rentals for commercial vehicles
- - - - contains any clause that allows purchase of the asset,
        lease will deem to be a sale from lessor to the lessee
    - - ori owner disposes the asset to lessor with a provision that lessor leases it back to disposer
      - deemed sale to lessee IF lessee claimed CA on the asset prior to the lease
    - - normally asset is disposed after lease has matured
      - this rule to discourage leased assets being sold below mkt value
        so lessor enjoy higher BA or lower BC
      - no issue if leased asset is disposed to lessee
        at or above MV
    - - SPA:
        leased asset which no other user can use without altering or dismantling a structure or land
      - ITA S36(1) SPA shall deemed to be a movable property
      - DG:
        structurally incorporated into a building and it forms integral part of the building as SPA ie. lifts, central air-con system etc
        
        contravenes the definition requires SPA to be a movable property
    - - sale and leaseback X recog for tax purposes
      - stop passing CA from lessee to lessor by structuring lease rentals to yield tax benefits
    - - IF lessee appointed as agent to find a buyer for a leased asset at the end of the lease term,
        transaction will remain as a lease for tax purpose