While leasing an asset, the owner of the asset pays tax and not the lessee.
In that case why is the tax relief cash flow relevant in calculating lease payments?
Ask the Tutor ACCA FM
Leasing an Asset
The lessee pays tax on their income less their expenses. The lease payments are allowable for tax and therefore result in a tax saving.
Ohh, now I get it..thank you so much.
You are welcome :-)
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