Variation in relation to the definition of “finance lease” in s YA 1 of the Income Tax Act 2007
This variation applies to lessors and lessees who may have agreed to extend lease terms (or intend to do so) due to the financial impacts of COVID-19. The time period in the definition of “finance lease” has been extended using s 6I of the Tax Administration Act 1994 to allow certain extended leases to continue to be treated as operating leases.
Tax Administration Act 1994: ss 6H and 6I
Income Tax Act 2007: s YA 1, paragraph (b) of the definition of finance lease