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ECONOMIC SUBSTANCE AND THE STANDARD OF REVIEW Christopher M.Pietruszkie i!z" INTRODUCTION ................................................................... ##$ I.ECONOMIC SUBSTANCE....................................................... #%& A. Su'(e!ti)eE!o*o+i! Su'st,*!e Test .................................. #%% -. Histori!, Perspe!ti)e o/Busi*ess Purpose ..................... #%0 &. Mo1er* App i!,tio* o/ Busi*essPurpose ........................ #%2 B. O'(e!ti)e E!o*o+i! Su'st,*!e

Test ................................... #%$ II. STANDARDS OFREVIEW ..................................................... #03 A. Histori!,Perspe!ti)es.................................................. #0& B. F,!t45,Disti*!tio* ................................................... #00 C. Di)isio* o/ Respo*si'i it6 i*F,!t45, A*, 6sis .................... #0$ D. Ro e o/ Appe ,teRe)ie ............................................... #23 III. APP57IN8 STANDARDS OF REVIEWIN THE CONTE9T OF ECONOMICSUBSTANCE................................................................... #20 A. The Ru e 0&:,;Phe*o+e*o* ........................................... #20 B. I*stitutio*,

Co*si1er,tio*s ............................................ #2$ C. T,< A)oi1,*!e )s. T,<Mi*i+iz,tio* ................................. #=3CONC5USION...................................................................... #=0 INTRODUCTION

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&33$ E!o*o+i! Su'st,*!e ,*1 the St,*1,r1 o/ Re)ie #%- This Arti! e su ests,* ,ppropri,te /r,+e ork /or !ourts to ,pp 6 he* ,11ressi* the st,*1,r1 o/re)ie i* e!o*o+i! su'st,*!e !,ses. P,rt I 1es!ri'es the e!o*o+i! su'st,*!e1o!tri*e ,*1 ,sserts th,t the e!o*o+i! su'st,*!e 1o!tri*e ,rises i* !,ses ithi*here*t 6 /,!tu, i* uiries i*)o )i* , 1eter+i*,tio* o/ p,rti!u ,rize1 /,!ts th,t,re *ot rep i!,te1 i* su'se ue*t !,ses. P,rt II i*tro1u!es ,*1 ,*, 6zes thetr,1itio*, /,!t4 , 1isti*!tio* th,t