The business purpose doctrine requires a transaction to have an economic purpose other than one based solely on tax avoidance.

Name: The business purpose doctrine requires a transaction to have an economic purpose other than one based solely on tax avoidance.
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Quizplus · Accepted Answer

The business purpose doctrine is a principle in tax law that requires a transaction to have a legitimate business purpose beyond merely reducing taxes in order for the tax benefits from that transaction to be recognized by tax authorities.

The Business Purpose Doctrine Requires a Transaction to Have an Economic