Public Law Studies Quarterly

The Bases of Statutory Interpretation of Taxation laws in Light of Judicial and Administrative Decisions

Document Type : Article

Author

Ahmad Shahniaie

Assistant Prof. in Law, The Institute For Management And Planning Studies (IMPS), Tehran, Iran

https://doi.org/10.22059/jplsq.2021.311813.2595
Abstract
As a result of the principle of legality of taxation, statute law is the main basis in the relationship between the taxpayer and the government. Therefore, the interpretive approach to statutory laws on taxation has considerable effects on the legal position of taxpayers as well as the rights and obligations of both  the taxpayer and the government. Some interpretive approaches, such as literal interpretation, result in the formation of principles like restrictive interpretation and interpretation in favor of taxpayer and enable taxpayers to manage their legal position so as to avoid tax obligations. But legal loopholes resulting from the literal interpretation of tax statutes might lead to the liberal interpretation of these statutes. It might also give more interpretation authority to judges on the basis of economic goals of the statute, the purpose of the statute and the intention of legislature in order to resolve the textual ambiguity in a statute. This article attempts to analyze and explain the particular elements and factors of tax statute interpretation on the basis of scholarly opinions, comparative law studies and judgments of judicial and tax authorities.

Keywords

tax avoidance
principle of legality of taxation
literal interpretation of tax statutes
liberal interpretation of tax statutes
interpretation in favour of the taxpayer
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Public Law Studies Quarterly
Volume 52, Issue 1
Spring 2022
Spring 2022
Pages 507-529

  • Receive Date 13 October 2020
  • Revise Date 25 January 2021
  • Accept Date 19 April 2021

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