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Tax Avoidance

Volume 507: debated on Tuesday 16 March 2010

To ask the Chancellor of the Exchequer what assessment he made of the implications for his Department of the judgment of the House of Lords in the case of Furniss v Dawson in 1984; and what estimate he has made of the effect of that judgment on the revenue of the Exchequer. (322243)

The 1984 Furniss v. Dawson judgment is one of a line of cases, often referred to as the “Ramsay” cases. These cases deal with the principle of statutory interpretation and establish the principle that tax legislation must be construed purposively and applied to a realistic view of the transactions that have taken place.

The tax effect of this line of cases is to apply tax provisions in line with Parliament’s intentions, and so collect the tax that is properly due.