What are the two kinds of administrative issuances defined in Fortune Tobacco v CIR?

What are the two kinds of administrative issuances defined in Fortune Tobacco v CIR?

• A. Interpretative rules and Legislative rules
• B. Legislative rules and Advisory rules
• C. Interim rules and Binding rules
• D. Administrative opinions and Procedural rules

Answer: (A)

Interpretative rules and legislative rules are the two kinds of administrative issuances defined in Fortune Tobacco v CIR. The idea is that the tax department issues guidance in two flavors. Interpretative rules explain how the law should be read and applied; they interpret the statute as it stands and do not create new rights or obligations beyond what the statute already imposes. Legislative rules, by contrast, are issued with statutory backing and have the force of law themselves; they can establish new procedures, requirements, or consequences within the framework of the statute and thus bind both the department and taxpayers. This distinction matters because interpretative rules provide clarity and uniformity without altering the statutory text, while legislative rules enact binding changes that operate as law. The other terms don’t map to the formal dichotomy identified in the case, so they don’t capture the precise relationship between guidance and statutory authority that Fortune Tobacco highlights.

Interpretative rules and legislative rules are the two kinds of administrative issuances defined in Fortune Tobacco v CIR. The idea is that the tax department issues guidance in two flavors. Interpretative rules explain how the law should be read and applied; they interpret the statute as it stands and do not create new rights or obligations beyond what the statute already imposes. Legislative rules, by contrast, are issued with statutory backing and have the force of law themselves; they can establish new procedures, requirements, or consequences within the framework of the statute and thus bind both the department and taxpayers.

This distinction matters because interpretative rules provide clarity and uniformity without altering the statutory text, while legislative rules enact binding changes that operate as law. The other terms don’t map to the formal dichotomy identified in the case, so they don’t capture the precise relationship between guidance and statutory authority that Fortune Tobacco highlights.