https://www.taxtmi.com/circulars?id=9582 Judicial approach treats prearranged, multi-step tax avoidance schemes by assessing the aggregate fiscal effect-comparing the position after the final step with that before the first-and taxes according to the substantive economic outcome rather than isolated formal steps. Courts may also lift the corporate veil in exceptional cases where a company is used to circumvent tax obligations, applying an economic-reality test so that informal arrangements cannot defeat tax assessment. en-us Tue, 08 Jan 1985 00:00:00 +0530 Tue, 07 Jun 2011 13:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=9582 Judicial approach treats prearranged, multi-step tax avoidance schemes by assessing the aggregate fiscal effect-comparing the position after the final step with that before the first-and taxes according to the substantive economic outcome rather than isolated formal steps. Courts may also lift the corporate veil in exceptional cases where a company is used to circumvent tax obligations, applying an economic-reality test so that informal arrangements cannot defeat tax assessment. Circulars Income Tax Tue, 08 Jan 1985 00:00:00 +0530 https://www.taxtmi.com/circulars?id=9582