The Delicate Balance : Revenue Authority Discretions and the Rule of Law in Australia
Australia, in line with other common law countries, operates under the doctrine of the separation of powers, derived from the writings of Montesquieu and Locke. Of course that pure version is no more evident in the Australian context than it is in other jurisdictions. Indeed, the Constitution positively sanctions a degree of blurring of the separation of powers. A fundamental concept that accompanies the separation of powers is, of course, the rule of law. In the context of taxation, which is the focus of this chapter, the protection of citizens from arbitrary governmental action and the provision of some appropriate level of certainty for citizens in dealing with their taxation affairs are obviously the most critical concerns. This chapter considers the balance that currently exists between the rule of law and the exercise of discretion in the context of the Australian taxation system