If the lessee is required to buy the asset at any time in the leasing period, including at the end of the lease, the Canada Revenue Agency (CRA) may rule the contract a conditional sales arrangement and not a lease.

Question

Quizplus · Accepted Answer

This statement is true according to the guidelines set forth by the Canada Revenue Agency (CRA) for determining whether a contract is a true lease or a conditional sales arrangement. If the lessee is required to purchase the asset at any point during the lease, including at the end of the lease, it may be considered a conditional sales arrangement and not a lease for tax purposes.

If the Lessee Is Required to Buy the Asset at Any