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Study On Economic Substance Doctrine In American Tax Law

Posted on:2012-08-25Degree:MasterType:Thesis
Country:ChinaCandidate:Y WangFull Text:PDF
GTID:2166330335957669Subject:Comparison of the Law
Abstract/Summary:PDF Full Text Request
Economic substance doctrine, which has its root in judicial cases, is the most important standard created by courts to combat tax abuse transactions. Courts has used the doctrine to deny claimed tax benefits from transactions that technically comply with the tax law but lack economic substance. Two-pronged test is the most commonly applied test of economic substance doctrine. But courts have different understandings to the two prongs as well as the meaning of substance. Codification of economic substance doctrine is a significant suggestion to clarify the doctrine, but has generated many debates. This dissertation is to employ the methodology containing empirical research, comparative analysis and economic analysis. The propose is to draw a proper definition of economic substance, give an economic evaluation of the doctrine's consequences and administration cost by studying classic cases and related material. Only in this way can useful guidance and suggestive information be provided for domestic theoretic study and anti-tax abuse practices. The dissertation has four chapters: Chapter One shows how economic substance doctrine evolved. Based on cases material and professional's discussions, Chapter Two concludes the disagreements and problems have arisen in America's anti-tax abuse practices of using economic substance doctrine and makes preliminary analysis. For the purpose of better understanding what economic substance doctrine is and when to apply it, Chapter Three studies the features of the doctrine and compare it with several similar anti-tax abuse doctrines such as sham transaction doctrine, step transaction doctrine by referring to American professionals'opinions. Last but not the least, Chapter Four introduces several representative suggestions to solve the doctrine's application problems in practice and how American scholars use economical tools to make a cost-benefit analysis of the doctrine in theory.
Keywords/Search Tags:Economic Substance, Anti-tax abuse, Substance over Form
PDF Full Text Request
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