Explain the meaning of “Canon of Certainty”?

The Canon of Certainty is a fundamental principle of taxation that emphasizes clarity, precision, and unambiguity in tax laws. It ensures that tax rules are explicitly defined, leaving no room for arbitrary interpretation by tax authorities or taxpayers. This principle promotes fairness, transparency, and predictability in tax administration, reducing disputes and fostering compliance. For instance, tax rates, exemptions, and deductions must be clearly outlined in legislation to prevent confusion or exploitation. By adhering to this canon, Nepal’s tax system aims to maintain consistency and trust among taxpayers.