The Bases of Statutory Interpretation of Tax law in Light of Judicial and Adminstrative Decisions

As a result of the principle of the legality of tax, the statute is the main basis in the relationship between the taxpayer and the government and interpretation. Therefore, the interpretive approach to tax statutes has considerable effects on the legal position of taxpayers as well as the rights and obligations of the taxpayer and the government. Some interpretive approachs, such as literal interpretation, result in the formation of principles like restrictive interpretation and interpretation in favor of taxpayer and enable taxpayers to manage their legal position so as to avoid tax obligations. But legal loopholes resulting from the literal interpretation of tax statutes might lead to the liberal interpretation of tax statutes and giving more interpretation authority to judges on the basis of economic goals of the statute, the purpose of the statute and the intention of legislature in order to resolve the textual ambiguity in a statute. This article attemts to anayze and explain the particular elements and factors of tax statute interpretation on the basis of scholarly opinions, comparative law studies and judgments of judicial and tax authorities.