A certain influence of mathematics both on the
form and substance of their philosophy is discernible in both of them.
The Karns court stated that Erickson Post was materially distinguishable, because the transaction in that case was a loan in both
form and substance.
An Argument for a Mere Distinction of Reason between Substantial
Form and Substance.
Because the arrangement was an option in
form and substance, Freddie Mac had properly deferred including the commitment fees in gross income until the date the options were exercised or lapsed; see Old Harbor Native Corp.
According to the court's analysis, risk shifting must be present in both form and substance.
Under the Tax Court's "pooling" concept, an insurance relationship exists if the captive insures a substantial amount of unrelated risk and the transaction in both form and substance is insurance.
