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TMI BlogPRINCIPLES OF STRICT CONSTRUCTIONX X X X Extracts X X X X X X X X Extracts X X X X ..... miliar words of LORD WENSLEYDALE, reaffirmed by LORD HALSBURY AND LORD SIMONDS, means: The subject is not to be taxed without clear words for that purpose; and also that every Act of Parliament must be read according to the natural construction of its words. In a classic passage LORD CAIRNS stated the principle thus: If the person sought to be taxed comes within the letter of the law he must be taxed, however great the hardship may appear to the judicial mind to be. On the other hand, if the Crown seeking to recover the tax, cannot bring the subject within the letter of the law, the subject is free, however apparently within the spirit of law the case might otherwise appear to be. In other words, if there be admissible in any statute, what ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estment Co. v. Betts, (1928) AC 143]. Considerations of hardship, injustice or anomalies do not play any useful role in construing taxing statutes unless there be some real ambiguity [Mapp v. Oram, (1969) 3 All ER 215]. It has also been said that if taxing provision is so wanting in clarity that no meaning is reasonably clear, the courts will be unable to regard it as of any effect [IRC v. Ross and Coutler, (1948) 1 All ER 616]. Further elaborating on this aspect, the learned author stated as follows: Therefore, if the words used are ambiguous and reasonable open to two interpretations benefit of interpretation is given to the subject [Express Mill v. Municipal Committee, Wardha, AIR 1958 SC 341]. If the Legislature fails to express itself ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above passage from Justice G.P. Singh s treatise, summed up the following principles applicable to the interpretation of a taxing statute: (i) In interpreting a taxing statute, equitable considerations are entirely out of place. A taxing statute cannot be interpreted on any presumption or assumption. A taxing statute has to be interpreted in the light of what is clearly expressed; it cannot imply anything which is not expressed; it cannot import provisions in the statute so as to supply any deficiency; (ii) Before taxing any person, it must be shown that he falls within the ambit of the charging section by clear words used in the section; and (iii) If the words are ambiguous and open to two interpretations, the benefit of interpretatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e mid 1800s, and has come back to restate the Rule somewhat in terms of what was most felicitously put over 400 years ago in Heydon's case . In Principles of Statutory Interpretation by Justice G.P. Singh, 5th Edn., at pages 455 and 456, which reads as follows :- 1. STRICT CONSTRUCTION OF TAXING STATUTES (a) GENERAL PRINCIPLES OF STRICT CONSTRUCTION : A taxing statute is to be strictly construed. The well-established rule in the familiar words of LORD WENSLEYDALE, reaffirmed by LORD HALSBURY and LORD SIMONDS, means : The subject is not to be taxed without clear words for that purpose; and also that every Act of Parliament must be read according to the natural construction of its words . [Re: Hicklotheweit, (1885) II Ex 452, p. 456 : ref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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