But this entire process must, at some stage, pass through the procedure laid down for 'Money Bills'. Confusion prevails in taxing laws, too. Here again, the British practice will be helpful in understanding the concept of a tax authority, in whom it vests and how it is applied. The British Parliament is a sovereign body and, therefore, is not bound by any preconceived ideas called conventions or by any law made by itself. Yet, certain rules which fall under both categories, one of which was earlier discussed, are very religiously adhered to in Britain.
Taxation provides a curious example.
Thus the usage of collecting a tax in advance of its authorisation by Parliament became part of the law. This Act, as Wade hints, is a sort of an Act of Indemnity operating in reverse gear. It 'indemnifies' the Administration for acts yet to be done. It should be particularly noted that the Act does not empower the Executive to impose any tax though there is no bar as such on the British Parliament. The Parliament, by this Act, only allows collection of amounts in anticipation that equivalent taxes would be later imposed by itself.