Necessity Theory 2. Benefits-Protection Theory (Symbiotic Relationship) 3. Jurisdiction Over Subject and Objects
Necessity Theory 2. Benefits-Protection Theory (Symbiotic Relationship) 3. Jurisdiction Over Subject and Objects
Necessity Theory 2. Benefits-Protection Theory (Symbiotic Relationship) 3. Jurisdiction Over Subject and Objects
Necessity theory
2. Benefits-protection theory (Symbiotic relationship)
3. Jurisdiction over subject and objects
Which theory in taxation states that without taxes, a government would be paralyzed for lack of
power to activate and operate it, resulting in its destruction? (2011 Bar Question)
SUGGESTED ANSWER:
The power to tax is the power to destroy. Is this always so? (2011 Bar Question)
(A) No. The Executive Branch may decide not to enforce a tax law which it believes to be
confiscatory.
(B) Yes. The tax collectors should enforce a tax law even if it results to the destruction of the
property rights of a taxpayer.
(C) Yes. Tax laws should always be enforced because without taxes the very existence of the
State is endangered.
(D) No. The Supreme Court may nullify a tax law, hence, property rights are not affected.
SUGGESTED ANSWER:
(D) No. The Supreme Court may nullify a tax law, hence, property rights are not affected.