Step Transaction Doctrine
/ˈstɛp ˈtrænzækʃən ˈdɔːktrɪn/
Definitions
- (n.) A legal doctrine that treats a series of formally separate steps as a single transaction for tax or legal analysis to prevent tax avoidance or circumvention of law.
The court applied the step transaction doctrine to consider the multiple transfers as one event for tax purposes.
Forms
- step transaction doctrine
Related terms
See also
Commentary
The doctrine is often invoked in tax law to look beyond isolated steps and assess the overall intent and economic reality of a transaction.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.