Explain the principles of a sound tax system.

The principles are Fiscal Adequacy, Theoretical Justice and

Administrative Feasibility.
Fiscal Adequacy means that sources of revenue must be adequate
to meet government expenditures and other public needs. This is
pursuant to the doctrine that taxes are the lifeblood of the
government.
Theoretical Justice is based on Art. VI, Section 28(1) of the
Constitution, which states that the rule of taxation must be uniform
and equitable and that the Congress must evolve a progressive
system of taxation. A good tax system must be based on the
taxpayers ability to pay.
Administrative Feasibility mandates that taxes should be capable of
being effectively and efficiently enforced and must not obstruct
business growth and economic development. The Supreme Court, in
Kapatiran Ng Mga Naglilingkod sa Pamahalaan ng Pilipinas, Inc., et
al, v. Tan, upheld the validity of the VAT Law by ruling that the same
is principally aimed to rationalize the system of taxes on goods and
services, simplify tax administration, and make the system more
equitable to enable the country to attain economic recovery.
Differentiate between double taxation in the strict sense
and in a broad sense and give example of each.
Double Taxation in the strict sense or objectionable or prohibited
sense, also known as direct duplicate taxation, means that the same
property is taxed twice when it should be taxed only once; and that
both taxes are imposed on the same property or subject matter, for
the same purpose, by the same State, Government, or taxing
authority within the same jurisdiction or taxing district during the
same taxing period and covering the same kind or character of tax.
(Villanueva vs. City of Iloilo)
In City of Manila vs. Coca-cola Bottlers Philippines, Inc., the Supreme
Court ruled that when a municipality or city has already imposed a
business tax on manufacturers, etc. of liquors, distilled spirits,
wines, and any other article of commerce, pursuant to Section
143(a) of the Local Government Code, said municipality or city may
no longer subject the same manufacturers, etc. to a business tax
under Section 143(h) of the same Code. Section 143(h) may be
imposed only on businesses that are subject to excise tax, VAT, or
percentage tax under the NIRC, and that are not otherwise specified
in preceding paragraphs. Otherwise, the imposition would be
considered as double taxation in the strict sense which is legally
objectionable.

Double Taxation in a broad sense or indirect duplicate taxation is

permissible double taxation. The same is allowed if the taxes are of
different nature or character, imposed by different taxing
authorities. The Supreme Court held that a real estate tax and the
tenement tax imposed by a local ordinance although imposed by the
same taxing authority are not of the same kind and character.
(Villanueva vs. City of Iloilo)