1. Provision of power to tax on government.

(a)
The power to tax is the authority given to a government to impose taxes on its
citizens or entities within its jurisdiction. Taxes are levied on various forms of
income, assets, and transactions, and the revenue generated from taxation is used to
fund government operations, services, and programs.
The legislative branch of government, typically composed of a parliament or
congress, is responsible for passing tax laws determining the amount and type of
taxes to collect. These laws must conform to constitutional limits and principles,
such as the equal protection of the law and the prohibition of retroactive taxation.
In a democratic society, the exercise of the power to tax is subject to various
checks and balances, including public scrutiny, transparency, and accountability.
Citizens have the right to know how their tax dollars are being spent and to
demand accountability from their elected representatives.
Taxation can also be used as a tool to influence economic behavior and promote
social policies. For example, governments may use tax incentives to encourage
investment in certain sectors or regions or impose taxes on harmful activities such
as smoking or pollution to discourage them.
Overall, the power to tax is essential for governments to raise revenue and fulfill
their obligations to their citizens. However, it must be exercised responsibly and by
democratic principles to ensure that it is fair, reasonable, and proportional, and
used for the public good.

(b)
In the Philippines, the power to tax is granted to the government through the
country's Constitution and related laws. This power is vested primarily in the
legislative branch of government, which has the authority to pass tax laws, subject
to certain constitutional limitations.
The Philippine government's power to tax extends to all forms of income, property,
and transactions within its jurisdiction. Taxes are collected from individuals,
corporations, and other entities based on their income, assets, and activities, and
the revenue generated is used to fund government operations, services, and
programs.
The Philippine Constitution requires that taxation be uniform and equitable and
that tax laws be applied impartially. It also prohibits retroactive taxation and
requires that tax laws conform to constitutional principles such as due process and
equal protection of the law.
The Bureau of Internal Revenue (BIR) is the government agency responsible for
enforcing tax laws and collecting taxes. It has the power to conduct audits,
investigations, and assessments of taxpayers to ensure compliance with tax laws.
Overall, the power to tax is essential for the Philippine government to raise
revenue and fulfill its obligations to its citizens. However, it must be exercised
responsibly and by constitutional principles to ensure that it is fair, reasonable, and
proportional and used for the public good.

2. How to make a tax treaty?

A tax treaty, also known as a double taxation agreement, is an agreement
between two countries to prevent double taxation of income and to promote
cross-border trade and investment. Here are the steps to make a tax treaty in the
Philippines:
1. Identify the country or countries with which the Philippines wishes to
negotiate a tax treaty. The Department of Finance, through the Bureau of
International Revenue, is responsible for initiating tax treaty negotiations.
2. Conduct a feasibility study to assess the potential benefits and costs of
negotiating a tax treaty with the identified country or countries. This study
should consider the impact of the treaty on the economy, tax revenue, and
investment.
3. Engage in preliminary discussions with the identified country or countries to
determine their interest in negotiating a tax treaty with the Philippines. The
Philippine government may send a note verbale or letter of intent
expressing its interest in starting negotiations.
 4. Draft a model tax treaty that will serve as a basis for negotiations. The
Philippine government may consult with stakeholders, including business
groups and tax experts, to develop the model tax treaty.
5. Conduct formal negotiations with the identified country or countries to
reach an agreement on the terms of the tax treaty. Negotiations may take
several rounds and may cover issues such as the treatment of income, the
scope of the treaty, and dispute resolution mechanisms.
6. Finalize the text of the tax treaty and sign it. The Philippine government
must ensure that the tax treaty is consistent with its laws and constitutional
provisions.
7. Ratify the tax treaty through the Philippine Senate. The Senate must
approve the treaty by two-thirds before it can take effect.
8. Implement the tax treaty by incorporating its provisions into Philippine law.
This may require amendments to existing tax laws and regulations.
9. Monitor and evaluate the implementation of the tax treaty to ensure that it
achieves its intended goals and benefits.
Overall, making a tax treaty requires careful planning, analysis, and negotiation to
ensure that it benefits both countries and promotes cross-border trade and
investment

3. What is income taxation in the Philippines and what is its importance?

Income taxation in the Philippines is the system of imposing taxes on the income
of individuals, corporations, and other entities within the country. It is a significant
source of revenue for the Philippine government and plays an essential role in
funding public services, social programs, and infrastructure development.
The importance of income taxation in the Philippines can be summarized as
follows:
1. Revenue Generation: Income taxation is one of the primary sources of
revenue for the Philippine government. The taxes collected from individuals
and corporations are used to fund various government programs, services,
 and initiatives, such as education, health care, and public infrastructure
development.
2. Redistribution of Wealth: Through income taxation, the Philippine
government can redistribute wealth from the richer segments of society to
the poorer ones, which can help reduce income inequality and poverty.
3. Encouraging Compliance: The Philippine tax system is designed to
encourage voluntary compliance with tax laws. Penalties and other
sanctions are imposed on individuals and corporations that fail to comply
with their tax obligations.
4. Promoting Economic Growth: The Philippine government can use tax
incentives and other measures to promote economic growth, attract foreign
investment, and encourage businesses to expand and create jobs.
5. Encouraging Transparency and Accountability: Income taxation can promote
transparency and accountability in government by requiring individuals and
corporations to disclose their income and assets, which can help prevent
corruption and other illicit activities.
Overall, income taxation in the Philippines is an important tool for the
government to achieve its social and economic objectives. It can help raise
revenue, reduce income inequality, promote economic growth, and foster
transparency and accountability.