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COV 22/16
06 Apr 2022
14 Feb 2020
30 Sep 2022

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) because supply chain constraints resulting from COVID-19 have made it difficult to obtain new assets or replacement assets (e.g. motor vehicles) when existing leases expire. 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 Information Bulletin - May 2022

Tax Administration Act 1994: ss 6H and 6I
Income Tax Act 2007: s YA 1, paragraph (b) of the definition of finance lease