Tax Shelters or Efficient Tax Planning? A Theory of The Firm Perspective On the Economic Substance Doctrine

T. Christopher Borek, Angelo Frattarelli and Oliver Hart

No 19081, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Courts have articulated a number of legal tests to distinguish corporate transactions that have a legitimate business or economic purpose from those carried out largely, if not solely, for favorable tax treatment. We outline an approach to analyzing the economic substance of corporate transactions based on the property rights theory of the firm, and describe its application in two recent tax cases.

JEL-codes: C24 D02 D23 G34 H25 K34 (search for similar items in EconPapers)
Date: 2013-05
New Economics Papers: this item is included in nep-acc and nep-pbe
Note: CF LE PE
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Published as T. Christopher Borek & Angelo Frattarelli & Oliver Hart, 2014. "Tax Shelters or Efficient Tax Planning? A Theory of the Firm Perspective on the Economic Substance Doctrine," The Journal of Law and Economics, vol 57(4), pages 975-1000.

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