L2- SIMPLE Flashcards
What does Article 4 of the Bill of Rights (1689) require for taxation?
Taxation must be authorised by an Act of Parliament.
Where are the rules of UK tax law found?
In the legislative tax code (statute).
What is the main criticism of the UK tax code?
It is extremely long and complex, making it hard to understand or simplify.
What was the Tax Law Rewrite project?
A 1996 initiative to rewrite the tax code in clearer language without changing the rules.
What was the Office of Tax Simplification?
A 2010 body created to suggest ways to make tax law simpler; closed in 2023.
What is the purposive approach to statutory interpretation?
Courts try to understand the purpose behind tax laws rather than taking the literal meaning.
Which case introduced the purposive approach in tax law?
Pepper v Hart [1993] AC 593.
What does HMRC stand for?
His Majesty’s Revenue and Customs.
What does HMRC do?
It collects and manages UK taxes.
Can HMRC use discretion in tax collection?
Yes, HMRC can use “administrative common sense” and avoid collecting tax in some cases.
What is judicial review in tax?
A way to challenge HMRC’s actions if they are so unfair it becomes an abuse of power.
What are Extra-Statutory Concessions (ESCs)?
Promises by HMRC not to collect full tax in certain situations, even if the law allows it.
Can you sue HMRC in tort for mistakes?
No, generally HMRC cannot be sued for negligence or errors.
What is a back-tax agreement?
A deal where HMRC accepts a lump sum instead of chasing the full past tax liability.
What is a forward-tax agreement?
An unlawful agreement to accept a lump sum for future tax; not allowed.
What happens if HMRC gives wrong advice and then changes its mind?
You may get judicial review if it would be extremely unfair to enforce the tax.
Why do some scholars argue taxpayers need more protection?
Because HMRC can be powerful, and taxpayers often can’t afford appeals or judicial review.
