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Principles of Statutory Interpretation

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Chapter 3: Principles of Statutory Interpretation
3.1: The Literal Rule
"If the precise words used are plain and unambiguous, in our judgment we are bound to construe them in their ordinary sense, even though it does lead to an absurdity or manifest injustice"- Jervis CJ in Abley v. Dale 1851.
The literal rule means the interpretation of Acts purely according to their literal meaning; it has fallen out of favour since the 19th Century. The literal rule of statutory interpretation says that words in a statute should be given their ordinary, literal meaning, no matter how absurd the result .
An example of this rule can be seen in IRC v Hinchy (1960), in which the House of Lords was considering the effect of the Income Tax Act 1952. Section 25 of the ITA stated that any tax avoider should pay a £20 fine and ‘treble the tax which he ought to be charged under this Act’. Hinchy’s lawyers argued that this meant a £20 fine and treble the amount of tax which had been avoided. Unfortunately for Hinchy, the House of Lords decided that the literal meaning of ‘treble the tax which he ought to be charged under this Act’ was that a tax avoider should pay a£20 fine and treble his whole tax bill for the year. The outcome of the case was that Hinchy had to pay £438, even though the amount he had avoided was only £14.It is almost certain that the meaning applied by the House of Lords was not what Parliament had in mind when the Income Tax Act 1952 was passed. The statute was badly worded. The blame for this must lie with the parliamentary draftsmen. At the same time, however, it must be realised that they have a near impossible task. Skilled lawyers though these draftsmen are, they cannot possibly foresee every interpretation of the statutes they prepare. Once the statute has become law, every lawyer in the land might be looking for an interpretation which would suit his or her

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