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States, supra; Saviano v. Commissioner, supra; Falsetti v.
Commissioner, supra. In Frank Lyon Co. v. United States, 435
U.S. 561, 573 (1978), the Supreme Court stated:
In applying this doctrine of substance over form, the
Court has looked to the objective economic realities of
a transaction rather than to the particular form the
parties employed. The Court has never regarded “the
simple expedient of drawing up papers,” Commissioner v.
Tower, 327 U.S. 280, 291 (1946), as controlling for tax
purposes when the objective economic realities are to
the contrary. “In the field of taxation,
administrators of the laws and the courts are concerned
with substance and realities, and formal written
documents are not rigidly binding.” Helvering v.
Lazarus & Co., 308 U.S. [252] at 255 [(1939)]. See
also Commissioner v. P.G. Lake, Inc. 356 U.S. 260, 266-
267 (1958); Commissioner v. Court Holding Co., 324 U.S.
331, 334 (1945). Nor is the parties’ desire to achieve
a particular tax result necessarily relevant.
Commissioner v. Duberstein, 363 U.S. 278, 286 (1960).
The Supreme Court, in concluding that the transactions there in
issue were to be recognized for tax purposes, held that, where:
there is a genuine multiple-party transaction with
economic substance which is compelled or encouraged by
business or regulatory realities, is imbued with tax-
independent considerations, and is not shaped solely by
tax-avoidance features that have meaningless labels
attached, the Government should honor the allocation of
rights and duties effectuated by the parties. * * *
[Id. at 583-584.]
This Court has articulated a definition of “‘sham in substance’
as the expedient of drawing up papers to characterize
transactions contrary to objective economic realities and which
have no economic significance beyond expected tax benefits.”
Falsetti v. Commissioner, supra at 347; see Rice's Toyota World,
Inc. v. Commissioner, 752 F.2d 89, 91-92 (4th Cir. 1985), affg.
in part and revg. in part 81 T.C. 184 (1983). In Falsetti, we
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