In summary, the following may be said from the cases about the second factor, the form and substance of the scheme:
- Consideration is required whether there is a discrepancy between the form of the scheme and its economic substance;
- Reconciliation of the commercial and business benefits of a scheme with the particular fashion in which the scheme was carried out may be helpful to the taxpayer; and
- The existence of relevant business rationale for each step within the overall transaction may be helpful for the taxpayer.
Back to: Dominant Purpose.
Note: The above is necessarily a broad summary of the legislation and case law and other issues may arise on the the evidence.
Legislation: Section 177D.