Page 109 - ADVANCED TAXATION - Day 1 Slides

109

Special Rules – Instalment Credit Agreements

Study
definitions
Instalment credit agreements SILKE
32.23.1

Suspensive sales and finance leases

• supply for payment in future/instalments over a period

• payment incl. finance charges
• amount payable > cash value of supply (sold @ profit)

Risk of ownership Suspensive sale
passes to • date when terms of agreement has been
purchaser
complied with
Difference Finance lease
• date lease agreement has been concluded