### Question
How does the law define economic substance doctrine?


### Answer
Under *26 U.S.C. § 7701*, **economic substance doctrine** is defined as:

> the common law doctrine under which tax benefits under subtitle A with respect to a transaction are not allowable if the transaction does not have economic substance or lacks a business purpose

#### Citation:
  - *26 U.S.C. § 7701*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 79-DEFINITIONS**

