ABSTRACT
This chapter examines the financial advantages of double-tip leasing with the application of the net present value method. It discusses double-dip leasing and its financial evaluation. The main advantages of cross-border leasing is the tax savings through structuring double-dip deals in which both the lessor and lessee are qualified in their own tax system as the owner for tax purposes given to the leased asset. A major objective of international leases is to reduce the overall cost of financing through utilisation by the lessor of tax depreciation allowances to reduce its taxable income. Each country applies different rules for determining whether the party acting as lessor under an international lease is the 'owner' of the leased asset for tax purposes and is thereby entitled to claim tax allowances. In a double-dip transaction, the disparate leasing rules in two countries let both the lessor and the lessee be treated as the owner of the leased asset for tax purposes.
