SAMPLE

CRAC Method vs. INTER-WEAVE Method

I. “Isla”, an island located in Country “X”, seceded and it became a sovereign state. Its new name is
“Avenger State”. The state has a land size as that of Camiguin Island. It was then divided by the rebel
government through their recognized de facto leader President “Thor”, into four (4) zones, pending
the crafting of their constitution. Each zone is governed by a zone governor. East Zone is headed by
Governor “Ironman”. West Zone is headed by Governor “Hulk”. North Zone is headed by Governor
“Black Widow”. West Zone is headed by Governor “Scarlet Witch”. Questions:
SUGGESTED ANSWERS:

1. Can “Avenger State” exercise the power of taxation? Yes or no? Explain.

CRAC Method:
C - Yes.
R - Taxation is an inherent power of the State. As such, it can be exercised even in the absence
of a constitution, being an attribute of sovereignty.
A - In the case at bar, Avenger State is a newly created State. Thus, it has sovereignty. Even if
there is no constitution, the State can exercise the power of taxation, being its inherent power.
C - Therefore, Avenger State can exercise the power of taxation.

INTERWEAVE Method:
Yes. Avenger State can exercise the power of taxation because the latter is an inherent power of
the State. The State can levy and impose taxes even in the absence of the constitution.

2. Without Congress, can Pres. “Thor” levy taxes? Yes or no? Explain.

CRAC Method:
C - Yes.
R - Generally, the power of taxation is vested with congress. However, if congress is not existing,
the imposition of taxes can be done by the President or the executive, who has both the
executive power and legislative power.
A - In this case, the constitution is not yet passed. Thus, there is no congress. But the President,
who has with him both the executive power and legislative power, can levy taxes.
C - Therefore, President Thor can levy taxes.

INTERWEAVE Method:
Yes. There being no congress, President Thor has both the executive power and legislative
power. On the latter, he can impose and levy taxes.

3. Can the different zones levy local taxes? Yes or no? Explain.

CRAC Method:
C - It depends.
R - Generally, local governments has no inherent power to tax. But, they can have the power to
tax if granted by congress through a statute or by the constitution or by the President who
exercised the legislative power.
A - In the case at bar, the different zones can levy local taxes if it is granted by President Thor.
Otherwise, without the granting of taxing powers by President Thor, the zones cannot impose
or levy local taxes.
C - Therefore, the levy or imposition of taxes by the local zones would depend upon if whether or
not it will be granted to them by President Thor.

INTERWEAVE Method:
Yes. The different zones can levy local taxes if it is granted by President Thor, who exercised
both the executive power and legislative power.

No. If President Thor who exercised both the executive power and legislative power, would not
give them the power to levy and impose local taxes.
4. Supposing “Batman”, an Avenger State national, a resident in “Y” country, has a land in that
country, can Avenger State impose a property tax on his land in “Y” country? Yes or no? Explain.

CRAC Method:
C - No.
R - Property taxes by its nature can be imposed only by the State which has territorial jurisdiction
over the land subject to tax.
A - In this case, the land is located in “Y” country. Hence, Avenger State cannot impose property
taxes.
C - Therefore, Avenger State cannot impose property taxes on the land of Batman located in
another country.

INTERWEAVE Method:
No. Avenger State cannot impose property taxes on the land of Batman located in “Y” country
because property taxes by its nature is territorial in jurisdiction. Thus, taking into account that the
land is located outside the Avenger State, the latter cannot impose property taxes.

5. How about if “Batman has income in “Y” state, can he refuse the Avenger State levy of excise
taxes on his income in “Y” state? Yes or no? Explain.

CRAC Method:
C - No.
R - Income tax is an excise tax. By its nature, it can be imposed by the State who has personal
jurisdiction of the taxpayer since there is privity of relationship between the taxpayer and the
imposing state, when the taxpayer is a citizen of that state.
A - In this case, Batman cannot refuse to pay the tax because Avenger State has personal
jurisdiction over him, he being a citizen of Avenger State.
C - Therefore, Batman cannot refuse the payment of the income tax.

INTERWEAVE Method:
No. Batman being a citizen of Avenger State, is under the personal jurisdiction of the state who
can impose and levy taxes against his income located in “Y” state. There is privity or relationship
between Avenger State and Batman, since the latter is a citizen of Avenger State. Thus, he has
the obligation to pay taxes.

6. What is meant by “symbiotic relationship” in taxation? Explain.

Since you are asked of a term, there is no need to apply the CRAC or INTER-WEAVE methods. Just
simply answer direct and concise.

SUGGESTED ANSWER:

It means the reciprocal duty of support and protection between the state and its citizens. The citizens
has the obligation to support the state through taxes, while the state has the duty to protect its citizens.

If you are asked for an enumeration, simply state, “the elements are:” then enumerate.

Good luck in your Finals Exam.