Question: “The UK case law has failed to provide coherent guidance for dealing with tax avoidance. The House of Lords has admitted that all attempts at clarification have only raised fresh doubts and further appeals…Under the guise of purposive statutory interpretation the courts are making distinctions based not on the wording of the statute in context, but on external, policy considerations. The judicial approach requires a proper framework, which could be provided by layered legislation, including a principle-based GAAR.”
[Judith Freedman, ‘Interpreting Tax Statutes: Tax Avoidance and the Intention of Parliament’ (2007) LQR 53, 90]
Discuss.
Answer: “The avoidance of taxes is the only intellectual pursuit that still carries any reward.”
John Maynard Keynes.
I. Introduction
Avoiding tax liabilities is a common goal shared amongst many taxpayers; and the courts are fully aware of it. Today the UK does not have general anti-avoidance legislation but instead, numerous targeted anti-avoidance legislations. On top of these, the House of Lords - following the Ramsay case and those cases subsequent to it - has been particularly influential in creating further hurdles for the devious tax planner. For a substantial period, the Ramsay case was the basis of an approach which the courts would use to tackle tax avoidance – though as we will see, this has evolved dramatically over the years....(short extract)
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- Subject: Law
- Course: Commercial Law
- Level: Degree
- Year: 2nd/3rd
- Mark: 72%
- Words: 2352
- Date submitted: April 20, 2009
- Date written: March, 2008
- References: Yes
- Document type: Essay*
- Essay ID: 1473
