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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 t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Judicial Doctrine
A legal doctrine is a framework, set of rules, procedural steps, or test, often established through precedent in the common law, through which judgments can be determined in a given legal case. A doctrine comes about when a judge makes a ruling where a process is outlined and applied, and allows for it to be 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 A legal fiction is a fact assumed or created by courts, which is then used in order to help reach a decision or to apply a legal rule. The concept is used almost exclusively in common law jurisdictions, particularly in England and Wales. Deve ... * Legal precedent * '' Ex aequo et bono'' References External links * *Pierre Schlag and Amy J. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., federal district, five major unincorporated territories, nine United States Minor Outlying Islands, Minor Outlying Islands, and 326 Indian reservations. The United States is also in Compact of Free Association, free association with three Oceania, Pacific Island Sovereign state, sovereign states: the Federated States of Micronesia, the Marshall Islands, and the Palau, Republic of Palau. It is the world's List of countries and dependencies by area, third-largest country by both land and total area. It shares land borders Canada–United States border, with Canada to its north and Mexico–United States border, with Mexico to its south and has maritime borders with the Bahamas, Cuba, Russia, and other nations. With a population of over 333 million, it is the List of ... [...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 i ... [...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. 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. is to set 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 is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and recognized as such in 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: by whether they can issue share capital, stock, or by 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 article) or ''corporation sole, sole'' (a legal entity consisting of a sing ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Common Law
In law, common law (also known as judicial precedent, judge-made law, or case law) is the body of law created by judges and similar quasi-judicial tribunals by virtue of being stated in written opinions."The common law is not a brooding omnipresence in the sky, but the articulate voice of some sovereign or quasi sovereign that can be identified," ''Southern Pacific Company v. Jensen'', 244 U.S. 205, 222 (1917) (Oliver Wendell Holmes, dissenting). By the early 20th century, legal professionals had come to reject any idea of a higher or natural law, or a law above the law. The law arises through the act of a sovereign, whether that sovereign speaks through a legislature, executive, or judicial officer. The defining characteristic of common law is that it arises as precedent. Common law courts look to the past decisions of courts to synthesize the legal principles of past cases. ''Stare decisis'', the principle that cases should be decided according to consistent principled rules s ... [...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 Places Australia * 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 (crater on Venus) 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) * Gregory County (other) * Gregory Highway, Queensland * Gregory National Park, Northern Territory * Gregory River in the Shire of Burke, Queensland * Justice Gregory (other) * Lake Gregory (disambiguati ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Akron Tax Journal
The University of Akron School of Law is the law school at the University of Akron in Akron, Ohio, USA. Offering both the J.D. and LL.M. 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 who have gone on to careers in the private and public sectors, including several notable judges and politicians.School of Law Indicators of Excellence Retrieved March 26, 2009. Located across from on University Avenue, the University of Akron School of Law is housed in the C. Blake ... [...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 U.S. federal court cases, and over state court cases that involve a point of federal law. It also has 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." The court holds the power of judicial review, the ability to invalidate a statute for violating a provision of the Constitution. It is also able to strike down presidential directives for violating either the Constitution or statutory law. However, it may act only within the context of a case in an area of law over which it has jurisdiction. The court may decide cases having political overtones, but has ruled that it does not have power to decide non-justiciable political questions. Established by Article Three of the United State ... [...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. 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. is to set 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 Bri ... [...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] |