A new approach for estimating the tax advantage of leasing
Massimo Regalli
(Lecturer in Economics of Financial Intermediaries, Università degli Studi di Parma, Facoltà di Economia, Istituto di Credito, Finanza ed Assicurazioni, Via J.F. Kennedy, 6 43100 Parma, Italy)
Giulio Tagliavini
(Professor of Corporate Finance, Università degli Studi di Parma, Facoltà di Economia, Istituto di Credito, Finanza ed Assicurazioni, Via J.F. Kennedy, 6 43100 Parma, Italy)
12541
Abstract
The evaluation of the after tax cost of leasing is rather complex and financial operators often fail to emphasise the cost/benefit balance. We propose an analytical formula for the direct calculation of the true cost of leasing which does not involve the study of cash flows. Our discussion concerns the situation that we know best, the Italian case, which can easily be used more generally.
Keywords
Citation
Regalli, M. and Tagliavini, G. (2004), "A new approach for estimating the tax advantage of leasing", Management Research News, Vol. 27 No. 3, pp. 1-31. https://doi.org/10.1108/01409170410784149
Publisher
:Emerald Group Publishing Limited
Copyright © 2004, Emerald Group Publishing Limited