The Swinging Pendulum in the Interpretation of Revenue Statutes in Tanzania: A Strict or a Purposive Approach?

Abstract

This article examines evolving judicial approaches to interpreting revenue statutes, focusing on the shift from a strictly traditional approach to a more purposive one. In recent decades, courts have contended with the task of balancing these approaches to accurately ascertain legislative intent. While the strict textual scheme remains important, it is insufficient on its own, as modern courts increasingly emphasise the need to consider the statute’s purpose and context, as well as the broader legislative scheme. The purposive approach allows courts to interpret revenue laws in light of their underlying objectives, preventing unjust or absurd outcomes that might result from a strict approach. Using a doctrinal legal research methodology, this article examines statutes, subsidiary legislation and relevant Tanzanian case law to demonstrate the application and limits of both approaches. The article highlights recent judicial decisions where the courts have applied either approach, reflecting divergent views on statutory interpretation in revenue law. The article also reviews existing literature on this subject to contextualise the ongoing debate over the shift towards a purposive interpretation. The article concludes that while the pendulum continues to swing between strict and purposive approaches, the purposive approach is increasingly favoured to harmonise statutory text with legislative purpose. The courts must avoid interpreting provisions in isolation and instead consider the entire legislative framework to ensure the just and coherent application of tax laws.