18 Questions
What is the main factor that determines whether a retroactive tax legislation can be challenged on constitutional grounds?
The distinction between civil and criminal aspects of the legislation
According to Slade J in James v. IRC, what is the power of Parliament in enacting fiscal laws?
Unlimited, with the ability to enact laws of a prospective or retrospective nature
What is a prerequisite for a court to entertain a challenge to retroactive tax legislation on grounds of unconstitutionality?
The legislation must be ambiguous in its wording
What is the primary consideration in determining whether a retroactive tax legislation can be declared unconstitutional and void?
The criminal penalties imposed on taxpayers
What is the likely outcome when a court is faced with a challenge to retroactive tax legislation on grounds of unconstitutionality, where the statute's wording is clear and unambiguous?
The court will give effect to the legislation, despite its retrospective nature
What is the underlying principle in Slade J's judgment in James v. IRC, regarding the power of Parliament in enacting fiscal laws?
The principle of parliamentary sovereignty
What is the primary source of revenue law?
Legislation
According to Lord Simmonds, when is a subject taxed?
When the words of the taxing statute unambiguously impose the tax on him
What should be given to the words of a tax statute, according to Lord Donovan?
Their ordinary meaning, without exception
What is the purpose of construing a tax statute?
To ascertain the will of the legislature
What can be used as an aid to constructing a tax statute, according to Lord Donovan?
The history of the enactment and the reasons that led to its being passed
When interpreting a tax statute, what should be avoided?
Intendment
What is the primary purpose of the charging section in a tax statute?
To impose the tax on taxpayers
What was the outcome of the IRC v. Longman Green Co Ltd case?
The court refused to construe the machinery section to defeat the charge to tax
What was the Duke of Westminster's strategy to reduce his tax liability?
He stopped paying his gardener's wages and instead drew up a covenant to pay an equivalent amount at the end of every specified period
What was the Crown's argument in the IRC v. The Duke of Westminster case?
The payments made under the deed were made as remuneration for services and could not be deducted from the Respondent's total income
What principle was established in the IRC v. The Duke of Westminster case?
The principle of tax avoidance
What is the main difference between tax avoidance and tax evasion?
Tax avoidance is legal, while tax evasion is illegal
Understand the key principles of interpreting tax statutes, including the role of legislation and the importance of express language in determining liability. Learn from court cases like Russell v. Scott and develop your skills in revenue law.
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