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The Business Purpose Concept means: 1. that the economic purpose of the transaction must exceed the tax avoidance motive. 2. that the taxpayer's dominant motive

The Business Purpose Concept means:

1. that the economic purpose of the transaction must exceed the tax avoidance motive.

2. that the taxpayer's dominant motive for an expenditure is to reduce taxation.

a. Only statement 1 is correct.

b. Only statement 2 is correct.

c. Both statements are correct.

d. Neither statement is correct.

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