Fuzzy law in the tax world
Source: The Tax Specialist Journal Article
Published Date: 1 Jun 2020
This article looks to recent developments with corporate law and the Banking Royal Commission and asks if there are any lessons to be learned for the formulation of tax law. In particular, should tax law be prescriptive or principles-based (ie fuzzy')? Four example areas of tax law are considered, being: the capital v revenue account dividing line (together with some recent cases and developments); the tax consolidation provisions; the taxation of financial arrangements provisions; and the transfer pricing provisions. Differing conclusions emerge from these areas. The answer itself is fuzzy and the article concludes that there is a role to play for both principles-based drafting and prescriptive drafting of tax law. Tax law is at its best when both the principles and goalposts are clear " achieving that holy grail is not easy.
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Details
- Published By: Chris Kinsella CTA
- Published On:1 Jun 2020
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