| From Mondaq.com: Under the current taxation laws, there are various approaches to the treatment of financial products, which can be the legal form based approach, the economic substance based approach or a mix of these approaches.
For example, it is not unusual for the Islamic financial product to have the same economic substance as the Western financial product but due the intrinsic legal difference between the two the products are taxed differently (i.e. as it is common for tax provisions to look to the legal form of an arrangement to understand its economic substance)..............................................Full Article: Source
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