GENERAL PRINCIPLES OF TAXATION EXAM 2024/2025 WITH COMPLETE SOLUTIONS

GENERAL PRINCIPLES OF TAXATION EXAM 2024/2025 WITH COMPLETE SOLUTIONS TAXATION AS STATE POWER - Correct Answer Inherent power of the State to enforce a proportional contribution from its subjects for public purpose PRINCIPLES OF A SOUND TAX SYSTEM - Correct Answer a. Fiscal adequacy. b. Equality or theoretical justice. c. Administrative feasibility. Fiscal Adequacy - Correct Answer Revenue must be sufficient to meet the demands of public expenditures. Theoretical Justice - Correct Answer Based on ability to pay; progressive (ability-to-pay principle). Administrative Feasibility - Correct Answer Capable of convenient, just and effective administration. Characteristics of the states power to tax (ILS) - Correct Answer Inherent in sovereignty - maybe exercised although not expressly granted by the constitution. Legislative in character - only the legislature can impose taxes. Subject to constitutional and inherent limitations - not an absolute power that can be exercised by the Government. PRIMARY PURPOSE OF TAXATION - Correct Answer To raise revenue to finance government expenditures. Limitations on power of taxation - Correct Answer a. Constitutional Limitations b. Inherent Limitations