A1.120 Statutory interpretation and the role of the courts
This article considers the role of the courts in the administration of the direct tax code, and the principles applied by the courts in the interpretation of tax law.
The direct tax code is a creature of statute so that the role of the tribunals and courts is to interpret the statute in the course of deciding disputes between, usually, HMRC and a taxpayer either on a tax appeal or an application for judicial review.
For more on tax appeals see Division A5.6. For more on judicial review see Division A5.7.
The cardinal principles of statutory construction
The proper construction of a taxing Act (or any statute), as opposed to the ordinary meaning of a word in the English language, is a question of law1. As with any other question of law, these questions are answered in accordance with the principles declared for that purpose by the common law.
In the context of the direct tax code, there are two cardinal principles
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