Form-driven??

[chen]

"Because many foreign tax regimes tend to be more form-driven than ours, taxpayers can often structure a transaction which is taxed favorably in accordance with its form for foreign tax purposes, while being taxed favorably in accordance with its substance for U.S. tax purposes"

this is qoated from an article about cross-board hybrid financing.. my question is what does "form-driven" mean? and does "favorably" mean "out of interest concern"? and last question "for US\Foreign tax purposes" , what does it mean,does "tax purpose" mean "tax law"?

....I don't know the first thing of tax..please help me .. thanks a million!!:-D

 

[Anglika]

"Because many foreign tax regimes tend to be more form-driven than ours, taxpayers can often structure a transaction which is taxed favorably in accordance with its form for foreign tax purposes, while being taxed favorably in accordance with its substance for U.S. tax purposes"

this is quoted from an article about cross-board hybrid financing. My question is what does "form-driven" mean? And does "favorably" mean "out of interest concern"? And last question "for US\Foreign tax purposes" , what does it mean, does "tax purpose" mean "tax law"?

....I don't know the first thing of tax..please help me .. thanks a million!!:-D

"form-driven" = the revenue office requires completed forms providing information from which they will compile their records. Some national revenue offices require more forms and more detailed information than others.

"favorably" = more leniently in this context. The tax levied is not as much as in other cases.

"tax purpose" = The information required and the use of this information to levy tax by the revenue offices.