I mentioned this in another thread so I thought about creating a new one.
I see a lot of examples of structures where the only benefit is achieving lower tax. But, there is also a 'substance over form' law in many countries. How can it be legal to structure companies in these ways?
For instance, Estonia doesn't tax undistributed profits but taxes individuals on investments immediately. How can it be legal to create a company that only invest and trade stocks in order to lower taxes?
I see a lot of examples of structures where the only benefit is achieving lower tax. But, there is also a 'substance over form' law in many countries. How can it be legal to structure companies in these ways?
For instance, Estonia doesn't tax undistributed profits but taxes individuals on investments immediately. How can it be legal to create a company that only invest and trade stocks in order to lower taxes?
