BICOL UNIVERSITY

LEGAZPI CITY
COLLEGE OF BUSINESS, ECONOMICS, AND MANAGEMENT
ACADEMIC YEAR 2022-2023

SAIRYL ERVAS LORIA BSBA MANAGEMENT 2B

1. SECONDARY OR NON-REVENUE PURPOSES

1.1 PROMOTION OF GENERAL WELFARE
 To "promote the general welfare" implies for the government to ensure
that as many of our nation's residents are fortunate, healthy, and
content.
1.2 REGULATION OF ACTIVITIES/INDUSTRIES
 In most situations, this entails establishing, implementing, and
publicizing licensing criteria, quality standards, and conduct guidelines
across a sector. They impose a greater tax on products that are not
subject to regulation
1.3 REDUCTION OF SOCIAL INEQUALITY
 Federal taxes lessen income disparity because high-income families
pay a bigger proportion of their income in total federal taxes than low-
income households.
1.4 ENCOURAGE ECONOMIC GROWTH
 Supporting small- and medium-sized businesses is essential to
ensuring equitable economic growth in the Philippines. Taxation not
only pays for public goods and services, but it also plays a significant
role in the social compact between citizens and the economy.
1.5 PROTECTIONISM
 Protectionism is the practice of defending domestic industry from
foreign competition through tariffs, import quotas, subsidies, or other
restrictions placed on the imports of foreign competitors. Protectionism
is the action of a government to help its country's trade or industry by
putting taxes restricting the number of commodities that can be
purchased from other countries.

2. Based on the articles that I have read on the internet, no law shall be passed that
impairs the duty of contracts, according to the section. This means that a contract
or treaty formed between the parties involved cannot be impaired, broken, or
suspended by a statute passed by the court. A later taxation law revoking a tax
exemption based on a contract is an example of impairment by law. However,
this only holds true if the tax exemption was given for a legitimate reason. that a
franchise may be changed, repealed, or amended. It's worth noting that in
exceptional cases, tax laws may have an impact on contractual arrangements.
 Governments have the authority to pass tax laws that address specific situations
or prevent abuse and tax evasion. However, when tax laws do intersect with
contracts, it is generally done within the confines of the legal system and with
due consideration for the rights and expectations of the parties involved.

3. A violation of the basic principles of a sound tax system does not necessarily
invalidate the entire tax law. Tax laws are complex and contain many provisions
that cover various aspects of taxation. Typically, no. Sound tax principles are
only general recommendations. However, a violation of the theoretical justice
principle may lead to the invalidation of a tax law due to a constitutional
requirement that taxation be uniform, equitable, and based on a progressive
system, not because of a violation of the canon of taxation.

4. The broad principle that "Government is exempt from tax" states that the
government itself is not compelled to pay taxes on its operations or income in
many nations. There are a few exceptions to this generalization, wherein
governments or other governmental bodies might be charged specific taxes.
Listed below are a few typical exceptions like sales taxes, specific taxes, and
non-profit organizations. It's vital to keep in mind that the particular taxes that
governments must pay depend on the legal system and tax regulations in each
nation. Regarding the taxes of governmental entities, each jurisdiction may have
its own set of regulations. Republic Act (RA) No. 8424's Section 27 C), also
known as the Tax Reform Act of 1997, which took effect on January 1, 1998, all
government-owned and controlled corporations, agencies, or instrumentalities—
with the exception of the GSIS, SSS, PHIC, PCSO, and PAGCOR—are required
to pay such a rate of tax on their taxable revenue.

5. In order for a tax to be legal, it must adhere to the principle of uniformity, which
states that taxpayers who are in comparable situations should be treated equally
under the law. In other words, it means that companies or people with
comparable financial situations should receive equal tax treatment. The notion of
uniformity is crucial for ensuring fairness and equity in taxation. It stops
discriminatory actions and makes sure that the tax burden is shared fairly among
all taxpayers. It implies that people or companies with comparable income levels
or property values need to be subject to the same tax rates or regulations. The
principle of uniformity dictates that persons with the same income should be
subject to the same tax rate, for instance, if a nation has a progressive income
tax system where tax rates rise with income levels. Similar to this, the concept of
uniformity dictates that properties with similar values should be subject to the
same tax rate if a property tax is based on the value of the property.