Economic approach to the facts relevant to taxation

• Main Author: Zoran Šinković
• Format: Article
• Language: English
• Published: Pravni fakultet Sveučilišta u Splitu 2018-01-01
• Series: Zbornik Radova Pravnog Fakulteta u Splitu
• Subjects: economic approach; sham contracts; legal contracts (transactions)
• Online Access: http://hrcak.srce.hr/file/287348

In interpreting tax regulations, economic interpretation has the importance of the role or principle of economic approach to the facts relevant to taxation, which codifies the principle of overcoming the content in relation to the form. On the same track it is possible to point out sham contracts and legal contracts (transactions) without which the application of this principle in practice was considerably hampered. It is necessary to change the regulataions of the General Tax Act related to the principle of economic approach to the facts relevant to taxation and sham contracts, which would surely help tax or judicial practices become even better in the application of tax regulations.