Tax Law within the Larger Legal System

Tax law may be viewed as occupying its own universe, even though tax funds the implementation of public policies that animate Canadian society. This article reminds us that tax law must respond to basic rule-of-law norms in spite of overarching and well-meaning policy goals. It adopts reference points featured in recent cases. One is the Charter, which limits penalties that can be imposed on non-compliant taxpayers and tax advisers without adhering to due process safeguards. Another is the impact of international arrangements among countries in a global business environment to guide consistent regulatory responses and to identify and share information. No matter how seemingly efficient or well-grounded, international norms still need to be safely grounded in Parliamentary authority to be enforceable in relation to Canadian taxpayers. All practitioners concerned with tax equity, neutrality, and efficiency should remember that tax law exists within a larger legal system and must be so evaluated; occasionally, it must yield to the legal principles underlying that system