economic substance

noun

A substantial purpose (aside from reduction of tax liability) and an economic effect (aside from the tax effect), which a transaction must have in order to qualify for any tax benefits.

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Meanings

nouneconomic substance (uncountable)
  1. USuncountableeconomicsA substantial purpose (aside from reduction of tax liability) and an economic effect (aside from the tax effect), which a transaction must have in order to qualify for any tax benefits.
Cite this entry
APA

economic substance. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/economic%20substance

MLA

“economic substance.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/economic%20substance. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “economic substance,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/economic%20substance.

Source: economic substance on Wiktionary, CC BY-SA 4.0.