Retrospective tax law: Has Pandora’s Box opened never to be shut again?
MetadataShow full item record
The recent Chevron case raised the issue of retrospectivity of legislation. While this issue is not new, it has been argued in the past that there are limits on when governments can resort to enacting retrospective laws. These limits centre on the ability of government to protect the revenue in the public interest. This paper explores the history of retrospective taxation legislation in Australia, and analyses whether such legislation was justified in the circumstances to achieve this goal. The authors argue that the Chevron case not only entrenches the right of governments to enact retrospectively with respect to taxation laws, but unjustifiably extends that right in the name of 'protecting the revenue'. This will have serious implications for taxation practitioners and their clients. The authors contend that retrospective legislation should only be considered in the most egregious circumstances, and that it is incumbent upon governments to acknowledge deficiencies in legislation promptly, and amend such legislation quickly, in order to provide certainty and maintain public confidence in the taxation system.
Copyright © 2017 School of Taxation and Business Law (Atax), University of New South Wales
Showing items related by title, author, creator and subject.
Wilson-Rogers, Nicole (2012)The Australian Review of Business Taxation (“RBT”)1 provides that tax avoidance occurs where there is a misuse of the law, such as the exploitation of loopholes in the legislation, to achieve a tax outcome that was not ...
Pinto, Dale; Gilchrist, David; Morgan, Annette (2013)In its Budget handed down in May 2011, the federal government announced proposed new taxation arrangements covering the not-for-profit sector in Australia. The government explained that these arrangements were largely ...
Al-Lehiany, O.; Stanley, David (2009)While developed countries have enjoyed a decreasing incidence of smoking over the last 30years, in the developing world there are still reports of rapid smoking take-up. It seems that indeveloping countries tobacco smoking ...