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Question: The VAT law was increased from 10% to 12% in the Philippines.

A group of individuals filed an


action in the courts alleging that the increased rates would be oppressive and confiscatory on their
business activities and that such would be tantamount to destroying their business As the judge of the
courts to which the case was presented you would
evaluate the case and rule against the government on the ground that the law was indeed confiscatory
evaluate the case and rule against the government on the ground that the law infringed upon the rights of
the citizens and is undue interference by the government on business.
evaluate the case and rule that all courts are prohibited from issuing an injunction on the collection of
taxes because it is the lifeblood of government
evaluate the case and rule that the courts may not interfere with the legislative policy on who and
what are to be taxed, it may only look upon the law by which the provision was enacted and see if
there has been a violation made.

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