Economic substance and tax abuse in Uzbekistan

Article 14 of the Tax Code of the Republic of Uzbekistan (2019) introduces two foundational anti-avoidance doctrines into the domestic tax system: the economic substance doctrine, which requires that transactions be characterized for tax purposes according to their actual economic content rather than their legal form, and the tax abuse concept, which empowers tax authorities to disregard transactions whose sole or predominant purpose is the unjustified reduction of tax liability. This article provides a detailed analysis of these provisions, examining their theoretical foundations, their relationship to similar doctrines in comparable jurisdictions, the procedural framework for their application under Article 14(8), and their interaction with the due diligence requirement of Article 15. The study assesses whether the current statutory framework provides sufficient clarity for taxpayers and authorities and identifies areas where supplementary guidance is needed.

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