• Fiscal Adequacy - sources of revenue should be sufficient to meet thedemands of public expenditure.●BASIC PRINCIPLES OFA SOUND TAX SYSTEM●Equality or theoretical Justice tax burden should be in proportion tothe taxpayer's ability to pay. (Ability-To-Pay Principle)-Administrative Feasibility tax laws should be capable of convenient,just and effective administration.-A) Which do you think is the mostimportant among the three inherent powers ofthe state? Why?B) If a tax law violates one of the three principlesof sound tax system, is it necessarily null andvoid? Explain your answer.

Taxation system is the backbone of the economy of every nation. The…

Answered: quacy ources of revenue sh sufficient…

Business

Accounting

quacy ources of revenue sh sufficient to eet the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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• Fiscal Adequacy - sources of revenue should be sufficient to meet the
demands of public expenditure.
●
BASIC PRINCIPLES OF
A SOUND TAX SYSTEM
●
Equality or theoretical Justice tax burden should be in proportion to
the taxpayer's ability to pay. (Ability-To-Pay Principle)
-
Administrative Feasibility tax laws should be capable of convenient,
just and effective administration.
-
A) Which do you think is the most
important among the three inherent powers of
the state? Why?
B) If a tax law violates one of the three principles
of sound tax system, is it necessarily null and
void? Explain your answer.

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