What Does Economic Substance Mean from an Economic Point of View?

Mihai Dan Mureè˜an and Attila Szora Tamaè˜
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Mihai Dan Mureè˜an: Universitatea "1 December 1918†Alba Iulia
Attila Szora Tamaè˜: Universitatea "1 December 1918†Alba Iulia

Finante - provocarile viitorului (Finance - Challenges of the Future), 2021, vol. 1, issue 23, 142-150

Abstract: Every democratic country must ensure a level of living as balanced and efficient as possible, both with regard to the needs and resources of the citizens who are part of this environment, as well as with regard to relations with internal or external partners. Without a harmonization of the economy from a legislative point of view, especially in the field of taxation, domestically and internationally, states allow the possibility of abusive interpretation of economic and fiscal legislation. It is normal for every manager, as well as each state to want a rapid development of managerial decisions, with economic and fiscal indicators over the competition. Practice has shown us that the economy is not held by territorial boundaries and that ways of interpretation will always be sought that are beneficial from the point of view of a strategy, of a business plan. The economic substance of a transaction is, in theory, the same, regardless of the boundaries and legal framework in different jurisdictional systems. It is essential for the legislature to ensure the optimal conditions for economic development with normal and fair competition. This presentation seeks to find correct solutions, collective interpretations of anti-abuse clauses, economic substance in order to efficiently collect taxes and duties owed to the state budget.

Keywords: abuse of rights; GAAR; legal framework; accounting documents; tax code. (search for similar items in EconPapers)
JEL-codes: H26 M41 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:aio:fpvfcf:v:1:y:2021:i:23:p:142-150

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