Copying and distributing are prohibited without permission of the publisher
Is this the end of the Japanese leasing?
01 December 2004
Japanese aircraft leases, the most popular cross-border tax lease available to airlines, could soon be impossible.
Read more:
JOL
Airlines
airline
Japanese operating lease
operating lease
The country's National Tax Agency has launched an attack on tax leases potentially threatens both domestic Japanese leveraged leases (JLL) and Japanese operating leases (JOL).
The move is partly in response to a court decision In October, which went against the agency's Nagoya office. The case involved a dispute with Nomura Babcock & Brown. Lawyers say the National Tax Agency had attempted to fine the arranger for selling JOL equity to individual investors. The agency claimed that only corporates could invest in JOLs. The court, however, ruled that there was nothing in the law that stated retail investors should be barred from JOL investments.
One month after losing the case, the agency shocked lease arrangers by proposing reforms for leases involving both institutional and individual investors.
"One month is very quick by the National Tax Agency 's standards," says one banker.
One...
Access to this content is denied because you are not logged in. Please login to view this content
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
