Ijara Structure Tax Drag
Model the tax penalty if an Islamic financing structure fails to qualify as a capital lease for US tax purposes.
Ijara Recharacterization Risk
The tax cost of failing to align Sharia-compliant leases with IRS 'True Lease' definitions.
Successful Structure (Debt Characterization)
Yield offset by interest deductions. 0% Withholding via PIE.
Failed Structure (Equity Characterization)
Loss of deduction. Double taxation applied.