Page 19 - Donation Tax & VAT class slides

INTRODUCTION & APPLICATION OF LEGISLATION

Interpretation rules

• Most of the definitions of the words and terms used in the

Income Tax Act can be found in section 1, but sometimes

other sections contain definitions as well. Where a term is

used in the Act but is not defined in the Act, one should go

to the Interpretation Act.

• The purpose of the Interpretation Act is to facilitate the

interpretation and understanding of legislation, and to
promote uniformity in the use of language in legislation; it is

also to align the interpretation of legislation with the

Constitution.

• When interpreting the wording used in the Income Tax Act:

• You should apply the literal meaning first – words should be limited
to their simplest, ordinary, most obvious meaning (“clear and

unambiguous”). If this meaning is clear then it must be applied
even if it gives rise to unfair results.

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