1. Differentiate the three inherent powers of the government from each other.

POLICE POWER is the power of promoting the public welfare by restraining and
regulating the use of both liberty and property of all the people. It is considered to be
the most all-encompassing of the three powers. It may be exercised only by the
government. The property taken in the exercise of this power is destroyed because it
is noxious or intended for a noxious purpose. It lies primarily in the discretion of the
legislature. Hence, the President, and administrative boards as well as the lawmaking
bodies on all municipal levels, including the barangay may not exercise it without a
valid delegation of legislative power. Municipal governments exercise this power by
virtue of the general welfare clause of the Local Government Code of 1991. Even the
courts cannot compel the exercise of this power through mandamus or any judicial
process.

POWER OF EMINENT DOMAIN affects only property RIGHTS. It may be

exercised by some private entities. The property forcibly taken under this power, upon
payment of just compensation, is needed for conversion to public use or purpose.

The taking of property in law may include:

- trespass without actual eviction of the owner;
- material impairment of the value of the property; or 
- prevention of the ordinary uses for which the property was intended.

  The property that may be subject for appropriation shall not be limited to
private property. Public property may be expropriated provided there is a SPECIFIC
grant of authority to the delegate. Money and a chose in action are the only things
exempt from expropriation.

Although it is also lodged primarily in the national legislature, the courts have
the power to inquire the legality of the right of eminent domain and to determine
whether or not there is a genuine necessity therefore.

POWER OF TAXATION affects only property rights and may be exercised only by
the government. The property taken under this power shall likewise be intended for a
public use or purpose. It is used solely for the purpose of raising revenues, to protect
the people and extend them benefits in the form of public projects and services (I
hope so). Hence, it cannot be allowed to be confiscatory, except if it is intended for
destruction as an instrument of the police power.

It must conform to the requirements of due process. Therefore, taxpayers are

entitled to be notified of the assessment proceedings and to be heard therein on the
correct valuation to be given the property. It is also subject to the general
requirements of the equal protection clause that the rule of taxation shall be uniform
and equitable.

Reference: https://www.scribd.com/doc/59750525/3-Inherent-Powers-of-
the-State

3.Differentiate tax avoidance and tax evasion

Tax avoidance is defined as legal measures to use the tax regime to find ways to pay
the lowest rate of tax, e.g putting savings in the name of your partner to take
advantage of their lower tax band.

Tax evasion is taking illegal steps to avoid paying tax, e.g. not declaring income to
the taxman.

In legal terms, there is a big difference between tax avoidance and tax evasion.
In practice, the outcome of reducing tax bill may be similar, but tax evasion could
lead to penalties under the law.

Some forms of tax avoidance are considered to be morally dubious and can
lead celebrities to suffer bad publicity – even if they didn’t break the law.

Tax avoidance could be

 Setting up residence in a country with low-income tax rates. In some countries

like America, this may involve giving up their American citizenship.

 Putting assets in your wife’s name so she can pay a lower rate of income tax.

 Setting up a company and pay dividends rather than income to avoid paying
national insurance.
  Giving assets to your children before you die to avoid paying inheritance tax.

Tax evasion could be

 Hiding income from the taxman

 Over claiming expenses.

 Declaring bankruptcy and restarting company under a different name.

Reference:https://www.economicshelp.org/blog/glossary/tax-
avoidance/#:~:text=Definition,declaring%20income%20to%20the%20taxman.