What is an evasion transaction?
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An evasion transaction arises where parties attempt to carry out a legal transaction under a different legal label or name.
An evasion transaction (Umgehungsgeschaeft) arises where the parties to a contract seek to accomplish a legal transaction under a different label or legal form. Prior to the ECJ ruling in Ospelt on the free movement of capital, the concept of evasion transactions was particularly significant in the context of agricultural land transfers.