How to navigate economic substance guidance

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Cookies Settings

How to navigate economic substance guidance

December 10 2011

On July 15 the Internal Revenue Service’s (IRS) Large Business & International (LB&I) division issued guidance to IRS examiners and examination case managers in the form of a directive concerning the application of the economic substance doctrine (ESD) that was recently codified in section 7701(o) of the Internal Revenue Code. Andrew Kim and William Skinner of Fenwick & West explain how taxpayers can navigate through the ESD, and also discuss recent US tax developments.

Unlock this content.

The content you are trying to view is exclusive to our subscribers.

To unlock this content:

Take a Free Trial or Login
more across site & shared bottom lb ros

More from across our site

Direct Tax
Merger international
Perkins Coie and Ashurst merger to forge $2.7bn law firm
The new outfit, Ashurst Perkins Coie, will bring together around 3,000 lawyers across 23 countries
Noemi Distefano, November 17 2025
Rankings analysis
ITR World Tax 2026 rankings Americas
World Tax Rankings 2026: Brazilian firms take centre stage in Americas
As World Tax unveils its much-anticipated rankings for 2026, we highlight the two Brazilian firms that had a standout year of tier promotions
Tom Baker, November 17 2025
Direct Tax
Whistleblower
A taxing week: HMRC whistleblower payouts would achieve more than swelling coffers
ITR understands that UK Chancellor Rachel Reeves will announce a consultation on the proposed financial reward scheme, which had left advisers fretting
Tom Baker, November 14 2025
Direct Tax
Medtronic 600 x 375
This week in tax: US court rejects Medtronic request to reconsider TP ruling
The long-running dispute centres on Medtronic’s use of the comparable uncontrolled transaction TP method; in other news, Paul Hastings and FTI Consulting both made double tax hires
Sam Sholli, November 14 2025
Transfer Pricing
shannon smit resized.jpg
ITR Award Winner Series: Shannon Smit, Transfer Pricing Solutions
The boutique Australian firm’s TP award recognition proves that world-class advisory services aren’t limited to the ‘big four’, the firm’s founder tells ITR
November 13 2025
Indirect Tax
brazil-4809011 (1).jpg
Brazil to become ‘pioneer’ with ‘unique’ VAT reform: OECD paper
Canadian and Indian dual VAT models have been a source of inspiration for the Brazilian model, but the latter has unique and innovative features, the OECD paper claimed
Sam Sholli, November 12 2025
Transfer Pricing
Suited figure pointing to audit among various hexagonal icons
Why South Africa’s tax audits are becoming unforgiving
More sophisticated use of technology, heightened TP scrutiny and stricter filing requirements are making South African Revenue Service audits a formidable challenge
Akashni Ashok Latchanna, November 12 2025
Direct Tax
Baker McKenzie
Baker McKenzie appoints ex-IRS senior attorney to US tax practice
The hire of Doug Wick expands Baker McKenzie’s state and local tax practice and adds to the firm’s growing ex-IRS expertise
Sam Sholli, November 11 2025
Direct Tax
james jobson and matthew missaghi.png
‘Big four but without the crap’: inside WTS Australia’s ambitions
One year after Nuwaru joined the WTS network, leaders James Jobson and Matthew Missaghi reflect on the firm’s mission to offer mid-tier pricing but deliver top-tier results
Tom Baker, November 10 2025
Rankings analysis
2027 world tax research webinar
ITR World Tax 2027 webinar: completing your submission
Join ITR's Head of Research, John Harrison, for an overview of key dates, new developments, best practices, and more for next year’s research cycle
November 10 2025
Gift this article