Professional Documents
Culture Documents
Sound Tax
Sound Tax
(3%)
SUGGESTED ANSWER
The principles of a sound tax system and their respective explanations, are as follows:
a) Fiscal adequacy which means that the sources of revenue should be sufficient to meet the demands
of public expenditures (Chavez v. Ongpin, G.R. No. 76778, June 6, 1990);
b) Equality or theoretical justice which means that the tax burden should be proportionate to the
taxpayer’s ability to pay (Sec. 28(1), Art. VI, 1987 Constitution); and
c) Administrative feasibility which means that the tax law should be capable of convenient, just and
effective administration, as well as, easy compliance by taxpayer.