Abstract

In this Study we try to analyze main issues of tax avoidance per Combined Financial Products and suggest some criteria, with them tax avoidance per Combined Financial Products is distinguished. The main issues of the tax avoidance per Combined Financial Products are at first,whether Financial Derivatives are to be taxed or not, if they do not have Investment Character according to the Law of Financial Market and Financial Investment Business. The next one is whether to be taxed as a unit trade or not, if the economic substance meets Step Transaction Doctrine. At third whether trade profit of Financial Derivatives must be taxed, if we know the value of Future Cash Flows of Over the Counter Trade of Financial Derivatives at the contract conclusion. And lastly whether we can tax them via Regulation of Repurchase Conditioned Trade and Conduit Theory. Our conclusions in this Study are at first Financial Derivatives without Investment Character have to be taxed, because they are practically same as normal Financial Products with confirmed profit. Secondly, we suggest some Preconditions of Combined Financial Products and on those bases we can treat them as a unit trade through Bechmarking of Step Transaction Doctrine. Tade profit of Financial Derivatives must be taxed, if we know the value of Future Cash Flows of Over the Counter Trade of Financial Derivatives at contract conclusion and the value at the expiration date is higher than that of at the conclusion date.

Keywords

• Combined Financial Products
• Financial Derivatives
• Step Transaction Doctrine
• Future Cash Flows

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