Arrangement to lack commercial substance - (New) Section 180(1)(a) / (Old) Section 97(1)(a)

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....t as a whole, is inconsistent with, or differs significantly from, the form of its individual steps or a part; or This clause introduces the substance-over-form principle. While every transaction has: • a legal form (documents, agreements, contracts) • an economic substance (actual commercial outcome) GAAR focuses on the economic reality. If the actual commerc....

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....lies that where substance of an arrangement is different from what is intended to be shown by the form of the arrangement, then tax consequence of a particular arrangement should be assessed based on the "substance" of what took place. In other words, it reflects the inherent ability of the law to remove the corporate veil and look beyond form. Principles enunciated by the courts on the questio....