RSA 21-J:38-a Sham Transactions May Be Disallowed.

I. The commissioner may disallow any sham transaction in ascertaining any taxpayer's tax liability. With respect to transactions between members of a controlled group, the taxpayer shall bear the burden of establishing by a preponderance of the evidence that a transaction or a series of transactions between the taxpayer and one or more members of the controlled group was not a sham transaction. For all other taxpayers, the commissioner shall bear the burden of establishing by a preponderance of the evidence that a transaction or series of transactions was a sham transaction.
II. In administering any tax, the commissioner may apply the doctrines of economic reality, substance over form, and step transaction.
III. If the commissioner disallows a sham transaction under para