Practice question
A statute creates a special-purpose flood-control levy. Its receipts remain unspent and the project continues. An administrative memorandum directs half the receipts to unrelated entertainment expenses, citing budget pressure and the broad power of taxation. No law changes the purpose. Which assessment is best?
- Broad taxing power validates every expenditure
- The memorandum can amend the special-fund rule
- The restriction applies only before tax payment
- The collector owns the receipts on collection
- The memorandum cannot divert purpose-bound receipts while the stated purpose remains
Legal references
- 1987 Constitution: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/3/353; Article VI, Section 29(3).
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