The Ruling applies in relation to leases under which the paramount purpose is for the hire of a ship or an aircraft. The Ruling distinguishes such leases from those (finance) leases under which the paramount purpose is for the purchase of the equipment concerned and that contain financing elements as part of the agreement. These latter leases are excluded from the substantial equipment provisions of the Permanent Establishment Article (Article 5) of the respective Conventions.
The Ruling applies to leases of ships or aircraft that do not fall for consideration under the Shipping and Aircraft Article (Article 8) of the respective Conventions. These articles apply to certain "full basis" and "bareboat basis" leases relating to the operation of ships or aircraft.
For a copy of TR 2007/10, go here