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

Posted: 30 May 2013  

T. Christopher Borek

Analysis Group, Inc.

Angelo Frattarelli

United States Department of Justice

Oliver Hart

Harvard University - Department of Economics; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: May 29, 2013

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.

Suggested Citation

Borek, T. Christopher and Frattarelli, Angelo and Hart , Oliver, Tax Shelters or Efficient Tax Planning? A Theory of the Firm Perspective on the Economic Substance Doctrine (May 29, 2013). Available at SSRN: https://ssrn.com/abstract=2271510 or http://dx.doi.org/10.2139/ssrn.2271510

T. Christopher Borek

Analysis Group, Inc. ( email )

1899 Pennsylvania Ave., NW
Suite 200
Washington, DC 20006
United States

Angelo Frattarelli

United States Department of Justice ( email )

950 Pennsylvania Avenue, NW
Washington, DC 20530-0001
United States

Oliver D. Hart (Contact Author)

Harvard University - Department of Economics ( email )

Littauer Center
Cambridge, MA 02138
United States
617-496-3461 (Phone)
617-495-7730 (Fax)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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