In the absence of sham, is a lease a lease and a sale a sale? CRA responded:
[W]hether a contract is a lease agreement or a sales contract must be resolved on the basis of the legal relationships created by the contract. Consequently, in the absence of a sham or express provision in the Act which provides that legal relationships must not be respected, … a lease agreement in civil law is a lease agreement and a sales contract in civil law is a sales contract.