Having completed this module students will be able to:
1. Understand and critique national and international tax policies surrounding the aviation sector.

2. Understand the impact of tax residence/ permanent establishment /taxable presence in the context of aircraft leasing.

3. Explain the trading status of aircraft leasing companies drawing upon case law and revenue rulings.

4. Explain the taxation treatment of lessors and lessees and the link to their accounting treatment.

5. Understand income tax considerations for senior executives of aircraft leasing companies

6. Critique the potential impact of Base Erosion and Profit Shifting (BEPS) on the aircraft leasing sector.

Lecture No. Topic
1. An Introduction to Tax
2. An Introduction to Tax Policy Making
3. Tax avoidance and tax evasion
4. The charge to tax: The meaning of tax residence for individuals
5. The charge to tax: Tax residence for companies

6. The meaning of a trade and the trading status of aircraft leasing companies
• Badges of Trade, Revenue Rulings re trading status of aircraft leasing companies
• Income qualifying for 12.5% corporate tax rate

7. Tax depreciation / capital allowances and the aircraft leasing sector
• The meaning of plant and industrial building
• Qualifying conditions for tax depreciation – wear and tear allowances, balancing allowances and charges
• Tax depreciation for aircraft in Ireland, including MRO

8/ 9. Taxation of Lessors and Lessees
• The link between lease accounting and the taxation of leases
• The concept of deferred tax
• Disposal of leased assets – the tax treatment of gains and losses on disposal
• The tax treatment of foreign exchange transactions
• Aercap Annual Report

10. Guest Lecture Tom Woods KPMG: Comparative international tax policies for aircraft leasing and typical ownership structures
Finance structures and related tax considerations
• Finance vehicles used – standard companies, S.110 companies
• Debt instruments used
• Securitisations

11. Guest Lecture: Martin McCoy, SMBC Aviation Capital.
Transfer tax considerations when buying and selling an aircraft
Withholding tax considerations
Access to tax treaties
i. Residency, beneficial ownership
ii. Relevant treaty articles
iii. Treaty shopping and anti conduit provisions
• Ireland’s tax treaty network
• Tax clauses in leases

12. Base Erosion and Profit Shifting (BEPS) and its potential impact on the aircraft leasing sector

Module Summary/Wrap up

Not applicable to this module.

• Group/class feedback, post-assessment

Not yet recorded.