Name: Kryztell Marie A.

Villaraza
Section Code: T211

Activity: Power of Taxation

1. What is a tax?
- A tax is an obligatory payment that the government levies on citizens,
companies, or other organizations to fund public spending. It provides money for
things like healthcare and education. There are many different types of taxes, such
as sales, property, and income taxes. They can be set up to change according to
wealth or income bracket. Taxes affect resource allocation and economic behavior
and are crucial for government financing.

2. What are the sources of tax laws?

- Legislation enacted by legislative bodies, rules made by government
organizations, and court rulings are the sources of tax laws. International
agreements and treaties are also important, particularly when it comes to cross-
border taxes. Administrative guidelines and tax policies further shape tax laws.
Together, these sources define a jurisdiction's legal foundation for taxes.

3. What are the justifications or theories for the exercise of the power of taxation?
- There are four theories or doctrines that justify the exercise of the power of
taxation. These are the Lifeblood Doctrine, Necessity Theory, Benefits Received
Principle, and the Doctrine of Symbiotic Relationship.

4. Choose one of the justifications or theories and provide a real-life example of it.
- The way the government collects taxes to finance the construction of
infrastructure and vital public services is an example of the necessity theory of
taxation in action. The Value Added Tax (VAT) that is imposed on products and
services is one example from real life. The Philippine government primarily depends
on VAT collection to fund a range of public spending initiatives, such as social
welfare programs, infrastructure projects, healthcare, and education. These services
are thought to be crucial for the growth of the nation and the welfare of its people.