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Rethinking The Role Of The Judicial Step Transaction Principle And A Proposal For Codification, Yoram Keinana

Akron Tax Journal

Thus, as this article will conclude, the role of the step transaction doctrine has been diminishing over the years from a primary weapon against tax shelters into an alternative test. In order to revive its role, the step transaction principle could be codified. As opposed to the controversial proposed codification of the economic substance doctrine, in my view, the codification of the step transaction principle will be more acceptable. The last part of this article sets forth a basic proposal for such codification.

This article will continue as follows. The first part discusses the fundamentals of the general principle of …