alleryStart learning →Accounting substance over form shows economic reality, not just:
AThe audit fee paid
BThe tax rate applied
CThe legal record
DThe market price
Answer & Solution
Correct answer: C. The legal record
The principle reports economic substance rather than simply the legal form recorded for transactions.
Keep practising Anti-avoidance Provisions
Browse all Anti-avoidance Provisions questions for CA Final, or explore more Taxation topics.
Related questions
Which BEPS tool is easy to create without moving assets, functions or personnel?Which asset type is described as the raw material of tax avoidance in BEPS planning?BEPS Action 12 deals with disclosure of what?Which payments do multinationals use to erode a higher-tax base?Base erosion and profit shifting involves moving profits from higher-tax to:For US CFC purposes, a US Shareholder owns at least what share of the foreign corporation?Under US rules, a foreign corporation is a CFC if more than what share is owned by US SharThe US Subpart F CFC rules were enacted in which year?