The reason the CRA is most concerned about lease contracts is:
A) firms that lease generally pay no taxes.
B) that leasing usually leads to bankruptcy.
C) that leases can be set up solely to avoid taxes.
D) because leasing leads to off-balance-sheet-financing.

Question

Quizplus · Accepted Answer

Leases can be structured in ways that minimize or avoid taxes, which is a concern for tax authorities like the CRA (Canada Revenue Agency). They ensure that leasing arrangements are not used primarily as tax evasion tools.

The Reason the CRA Is Most Concerned About Lease Contracts