A mere put option by the lessor at a favorable price does not necessarily lead to the attribution of economic ownership of the assets to the lessee. In its judgment the Supreme Tax Court once more confirms that economic ownership must be determined on a case-by-case basis.
Tax & Legal
In this issue: Official ponouncements, Supreme Tax Court Cases and From Europe
The Supreme Tax Court considers a sale-and-lease-back transaction as a taxable other service rather than a lease or the tax-exempt grant of a loan if the chosen scenario is a reasonable non-tax driven choice of form used to enable the seller (lessee) to enjoy certain accounting and reporting benefits.
The finance ministry has changed its VAT Implementation Decree to the effect that a lease concluded after delivery of the asset to the customer is either a sale and lease-back transaction or the grant of a loan.