Legal Definitions - dicis causa

Dicis causa is a Latin legal phrase that translates to "for form's sake" or "on the surface." It refers to an action, transaction, or agreement that is presented in a particular way, often to appear legitimate or to fulfill a superficial requirement, while its true purpose or underlying intent is different and often concealed.

Here are some examples to illustrate this concept:

• Example 1: Corporate Restructuring

  Imagine a large corporation that wants to reduce its tax liability by shifting profits to a subsidiary in a country with lower taxes. To do this, they might create a complex series of inter-company "loans" or "service agreements" between the parent company and the subsidiary. Dicis causa, these transactions appear to be legitimate financial dealings between separate entities. However, their true purpose is to move money around the corporate structure to minimize the overall tax burden, rather than reflecting genuine commercial services or arms-length lending.

• Example 2: Property Transfer

  Consider a situation where an individual wants to transfer ownership of a valuable piece of land to a family member without incurring significant gift taxes or triggering certain property transfer fees. They might arrange a "sale" of the land to the family member for a nominal amount, such as one dollar. Dicis causa, this transaction is recorded as a sale. However, the actual intent is to gift the property, using the sale format merely as a legal mechanism to achieve the desired transfer while potentially avoiding other financial implications associated with a direct gift.

• Example 3: Regulatory Compliance

  A manufacturing company is facing public scrutiny over its environmental practices. To address concerns, the company announces a new "environmental initiative" that involves forming a committee, commissioning a report, and holding a press conference. Dicis causa, these actions present the company as proactive and committed to environmental responsibility. However, the true underlying purpose might be to improve public relations and deflect regulatory pressure, with little genuine intention of making substantial changes to their operational practices. The outward display serves as a superficial demonstration of compliance.