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within the meaning of the statute. The overriding
principal is sometimes referred to as the doctrine of
“substance over form,” or is alternatively described as
the “economic substance” test. See, e.g., 1A. Willis,
Partnership Taxation, sec. 25.11, pp. 316-319 (1976).
[Boynton v. Commissioner, supra at 1158-1159.]
Our decision in Boynton v. Commissioner, supra, dealt with
section 704(b) as in effect in 1974. As in effect at that time,
and as interpreted in Boynton, section 704(b) generally provided
that if the partnership agreement did not provide as to the
partners’ distributive shares, or the principal purpose of any
provision of the partnership agreement with respect to the
partners’ distributive share of the item was avoidance or evasion
of tax described in that subtitle, then the partners’
distributive shares were determined with reference to each
partner’s agreed-upon share of the economic profits and losses,
not the basis upon which the partners might agree to report
income or claim losses on their individual returns. Boynton v.
Commissioner, supra at 1157 n.12, 1159. Section 704(b) was
subsequently amended for taxable years beginning after December
31, 1975, and now provides that if the partnership agreement does
not provide as to the partners’ distributive shares, or the
allocations to the partners under the partnership agreement lack
substantial economic effect, then the partners’ distributive
shares will be determined in accordance with the partners’
interests in the partnership. Sec. 704(b); Tax Reform Act of
1976, Pub. L. 94-455, sec. 213(d), 90 Stat. 1548. Thus, in the
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