Publication Date

2007

Abstract

Justice Roger J Traynor is best known for his judicial innovations in the fields of conflict of laws product liability and civil procedure However few would trace Traynors roots to the field of tax law In the late 1930s Traynor collaborated with Stanley S Surrey our nations foremost authorities on federal tax law and together they called for a substantial transformation of existing mechanisms for settling tax disputes At that crucial time in history high marginal tax rates intensified the friction between taxpayers and the government boosted litigation and multiplied the number of tax controversies Traynor and Surrey developed the idea of preventive tax policy aimed at preventing controversies from arising and where they cannot be prevented reducing the area in which they occur This paper explores the joint project of these extraordinary men in its historical context and its implementation in Justice Traynors understanding of tax adjudication Their proposal serves as proxy for the evolution of tax avoidance in a time when tax acts became complex followed by frequent tax revisions enacted in response to tax evasion It offers valuable guidance for reducing the complexity and vagueness inherent in our tax system and for improving the relationship between taxpayers and government Some of todays most important mechanisms to prevent tax avoidance originated in Traynor Surreys proposal such as private letter ruling and advanced pricing agreements Their proposition for a single court of tax appeals continues to be deliberated

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