| Abstract [eng] |
Considering that multinational corporate groups increasingly employ complex corporate structures while tax authorities seek to prevent the misuse of tax benefits and ensure that taxation reflects genuine economic activity, the concept and application of artificial arrangements becomes particularly significant in the context of corporate income taxation. The analysis of the development, definition and characteristics of artificial arrangements at both international and national levels revealed that this concept is closely linked to tax avoidance prevention and the application of the substance-over-form principle. Based on Lithuanian and European Union case law, it was established that the assessment of artificial arrangements is grounded in economic substance, factual circumstances and real activity, therefore a merely formal legal structure is not sufficient to classify an arrangement as artificial. The results of the research showed that clearer regulatory standards and the possibility for taxpayers to obtain ex ante tax assessment would strengthen legal certainty, support legitimate tax planning and ensure a balanced relationship between entrepreneurial freedom and tax avoidance prevention. |
