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Step Transaction Doctrine
The step transaction doctrine is a judicial doctrine in the United States that combines a series of formally separate steps, resulting in tax treatment as a single integrated event. The doctrine is often used in combination with other doctrines, such as substance over form. The doctrine is applied to prevent tax abuse, such as tax shelters or bailing assets out of a corporation. The step transaction doctrine originated from a common law principle in ''Gregory v. Helvering'', 293 U.S. 465 (1935), which allowed the court to recharacterize a tax-motivated transaction. Application The doctrine states: There are three tests for applying the step transaction doctrine: (1) a binding commitment, (2) a mutual interdependence of steps, or (3) the intent of particular result. Binding commitment test The binding commitment test was established in ''Commissioner v. Gordon''.. Under this strict test, a court will combine a series of separate steps if the parties had a formal obligation to ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Judicial Doctrine
A legal doctrine is a framework, set of rules, Procedural law, procedural steps, or Test (law), test, often established through precedent in the common law, through which judgments can be determined in a given legal case. For example, a doctrine comes about when a judge makes a ruling where a process is outlined and applied, and allows for it to be Case law, equally applied to like cases. When enough judges make use of the process, it may become established as the ''de facto'' method of deciding like situations. Examples Examples of legal doctrines include: See also * Constitutionalism * Constitutional economics * Concept * Rule according to higher law * Legal fiction * Legal precedent * ''Cogitationis poenam nemo patitur'' * ''Ex aequo et bono'' References External links * *Pierre Schlag and Amy J. Griffin, "How to do Things with Legal Doctrine" (University of Chicago Press 2020) * Emerson H. Tiller and Frank B. Cross,What is Legal Doctrine? " ''Northwestern University ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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United States
The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 contiguous states border Canada to the north and Mexico to the south, with the semi-exclave of Alaska in the northwest and the archipelago of Hawaii in the Pacific Ocean. The United States asserts sovereignty over five Territories of the United States, major island territories and United States Minor Outlying Islands, various uninhabited islands in Oceania and the Caribbean. It is a megadiverse country, with the world's List of countries and dependencies by area, third-largest land area and List of countries and dependencies by population, third-largest population, exceeding 340 million. Its three Metropolitan statistical areas by population, largest metropolitan areas are New York metropolitan area, New York, Greater Los Angeles, Los Angel ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Substance Over Form
Substance over form is an accounting principle used "to ensure that financial statements give a complete, relevant, and accurate picture of transactions and events". If an entity practices the 'substance over form' concept, then the financial statements will convey the overall financial reality of the entity (economic substance), rather than simply reporting the legal record of transactions (form). In accounting for business transactions and other events, the measurement and reporting is for the economic impact of an event, instead of its legal form. Substance over form is critical for reliable financial reporting. It is particularly relevant in cases of revenue recognition, sale and purchase agreements, etc. The key point of the concept is that a transaction should not be recorded in such a manner as to hide the true intent of the transaction, which would mislead the readers of a company's financial statements. Examples There is widespread use of substance over form concept in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Tax Shelters
Tax shelters are any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments. The methodology can vary depending on local and international tax laws. Types of tax shelters Some tax shelters are questionable or even illegal: *Offshore companies. Due to differing tax rates and legislation in each country, tax benefits can be exploited. For example, if Import Co. buys $1 of goods from India and sells for $3, Import Co. will pay tax on $2 of taxable income. However, tax benefits can be exploited if Import Co. sets up an offshore subsidiary in the British Virgin Islands to buy the same goods for $1, sell the goods to Import Co. for $3 and sell it again in the domestic market for $3. This allows Import Co. to report taxable income of $0 (because it was purchased for $3 and sold for $3), thus paying no tax. While the subsidiary will have to pay tax on $2, the tax is payable to the tax authority of Brit ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Corporation
A corporation or body corporate is an individual or a group of people, such as an association or company, that has been authorized by the State (polity), state to act as a single entity (a legal entity recognized by private and public law as "born out of statute"; a legal person in a legal context) and recognized as such in Corporate law, law for certain purposes. Early incorporated entities were established by charter (i.e., by an ''ad hoc'' act granted by a monarch or passed by a parliament or legislature). Most jurisdictions now allow the creation of new corporations through List of company registers, registration. Corporations come in many different types but are usually divided by the law of the jurisdiction where they are chartered based on two aspects: whether they can issue share capital, stock, or whether they are formed to make a profit (accounting), profit. Depending on the number of owners, a corporation can be classified as ''aggregate'' (the subject of this articl ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Common Law
Common law (also known as judicial precedent, judge-made law, or case law) is the body of law primarily developed through judicial decisions rather than statutes. Although common law may incorporate certain statutes, it is largely based on precedent—judicial rulings made in previous similar cases. The presiding judge determines which precedents to apply in deciding each new case. Common law is deeply rooted in Precedent, ''stare decisis'' ("to stand by things decided"), where courts follow precedents established by previous decisions. When a similar case has been resolved, courts typically align their reasoning with the precedent set in that decision. However, in a "case of first impression" with no precedent or clear legislative guidance, judges are empowered to resolve the issue and establish new precedent. The common law, so named because it was common to all the king's courts across England, originated in the practices of the courts of the English kings in the centuries fo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Gregory V
Gregory may refer to: People and fictional characters * Gregory (given name), including a list of people and fictional characters with the given name * Gregory (surname), a surname * Gregory (The Walking Dead), fictional character from the walking dead * Gregory (Five Nights at Freddy's), main protagonist of '' Five Nights at Freddy's: Security Breach'' ** Places Australia *Gregory, a town in the Northern Territory * Gregory, Queensland, a town in the Shire of Burke ** Electoral district of Gregory, Queensland, Australia * Gregory, Western Australia. United States * Gregory, South Dakota * Gregory, Tennessee * Gregory, Texas Outer space * Gregory (lunar crater) * Gregory (Venusian crater) Other uses * "Gregory" (''The Americans''), the third episode of the first season of the television series ''The Americans'' See also * Greg (other) * Greggory * Gregoire (other) * Gregor (other) * Gregores (other) * Gregorian (other) ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Akron Tax Journal
University of Akron School of Law is the law school at the University of Akron in Akron, Ohio. Offering both Juris Doctor and Master of Laws degrees, it was founded in 1921 as the Akron School of Law and merged with the University of Akron in 1959, becoming fully accredited by the American Bar Association in 1961. Since 1921, the school has produced over 6,000 graduates.School of Law Indicators of Excellence Retrieved March 26, 2009. Located across from E. J. Thomas Hall on University Avenue, the University of Akron School of Law is housed in the C. Blake McDowell Law Center on the northwest portion of the University of Akron campus. It also houses the Joseph G. Miller and William C. Beck ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Supreme Court Of The United States
The Supreme Court of the United States (SCOTUS) is the highest court in the federal judiciary of the United States. It has ultimate appellate jurisdiction over all Federal tribunals in the United States, U.S. federal court cases, and over State court (United States), state court cases that turn on questions of Constitution of the United States, U.S. constitutional or Law of the United States, federal law. It also has Original jurisdiction of the Supreme Court of the United States, original jurisdiction over a narrow range of cases, specifically "all Cases affecting Ambassadors, other public Ministers and Consuls, and those in which a State shall be Party." In 1803, the Court asserted itself the power of Judicial review in the United States, judicial review, the ability to invalidate a statute for violating a provision of the Constitution via the landmark case ''Marbury v. Madison''. It is also able to strike down presidential directives for violating either the Constitution or s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Liquidating Dividend
A liquidating distribution (or liquidating dividend) is a type of nondividend distribution made by a corporation or a partnership to its shareholders during its partial or complete liquidation. Liquidating distributions are not paid solely out of the profits of the corporation. Instead, the entire amount of shareholders' equity is distributed. When a company has more liabilities than assets, equity is negative and no liquidating distribution is made at all. This is usually the case in bankruptcy liquidations. Creditors are always senior to shareholders in receiving the corporation's assets upon winding up. However, in case all debts to creditors have been fully satisfied, there is a surplus left to divide among equity-holders. This mainly occurs during voluntary liquidations of solvent corporations. Cases A dividend may be referred to as liquidating dividend when a company: # Goes out of business and the net assets of the company (after all liabilities have been paid) are distribute ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Tax Shelter
Tax shelters are any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments. The methodology can vary depending on local and international tax laws. Types of tax shelters Some tax shelters are questionable or even illegal: *Offshore companies. Due to differing tax rates and legislation in each country, tax benefits can be exploited. For example, if Import Co. buys $1 of goods from India and sells for $3, Import Co. will pay tax on $2 of taxable income. However, tax benefits can be exploited if Import Co. sets up an offshore subsidiary in the British Virgin Islands to buy the same goods for $1, sell the goods to Import Co. for $3 and sell it again in the domestic market for $3. This allows Import Co. to report taxable income of $0 (because it was purchased for $3 and sold for $3), thus paying no tax. While the subsidiary will have to pay tax on $2, the tax is payable to the tax authority of Brit ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Economic Substance
Economic substance is a doctrine in the tax law of the United States under which a transaction must have both a substantial purpose aside from reduction of tax liability and an economic effect aside from the tax effect in order to qualify for any tax benefits. This doctrine is used by the Internal Revenue Service to determine whether tax shelters, or strategies used to reduce tax liability, are considered "abusive". Under the doctrine, for a transaction to be respected, the transaction must change the taxpayer's economic position in a "meaningful way" apart from the Federal income tax effects, and the taxpayer must have had a "substantial purpose" for entering into the transaction, apart from the Federal income tax effects. The economic substance doctrine was originally a common law doctrine. The doctrine was codified in subsection (o) of section 7701 of the Internal Revenue Code by the Health Care and Education Reconciliation Act of 2010.Sec. 1409, Pub. L. No. 111-152, 124 Stat. 1 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |