THE COURT OF TAX APPEALS OF THE PHILIPPINES Creation, Elevation and Expansion The Court of Tax Appeals (CTA) (CTA) was created on June 16, 1954, through through the enactment of epu!l"c Act #o$ 11%5 ($A$ 11%5)$ Cons"der"ng "ts l"m"ted &ur"sd"ct"on then, "t had onl' three () Judges, wh"ch at present "s eu"*alent to one (1) +"*"s"on$ "th the passage of epu!l"c Act #um!er 9%-% ($A$ 9%-%) on Apr"l %, %..4, the CTA CTA !eca !ecame me an appe appell llat ate e Cour Court, t, eua euall "n ran/ ran/ to the the Cour Courtt of Ap Appe peal als$ s$ The The compos"t"on of the Court "ncreased to s"x (6) Just"ces w"th one (1) 0res"d"ng Just"ce and *e (5) Assoc"ate Just"ces$ 2t shall s"t 3n anc, or "n two (%) +"*"s"ons w"th three () Just"ces each$ A dec"s"on of a d"*"s"on of the CTA CTA ma' !e appealed to the CTA CTA 3n anc, and the latters dec"s"on ma' further !e appealed !' *er"ed pet"t"on for cert"orar" to the upreme Court$ 7owe*er, epu!l"c Act #um!er 95. was enacted on June 1%, %..- and too/ e8ect on Jul' 5, %..-$ Th"s further enlarged the organ"at"onal structure of the CTA !' creat"ng a Th"rd +"*"s"on and pro*"d"ng for three () add"t"onal Just"ces$ 7ence, the CTA "s now composed of one (1) 0res"d"ng Just"ce and e"ght (-) Assoc"ate Just"ces$ The CTA CTA ma' s"t en !anc or "n three () d"*"s"ons w"th each d"*"s"on cons"st"ng of three () Just"ces$ The CTA, as one of the Courts compr"s"ng the 0h"l"pp"ne Jud"c"ar', "s under the super*"s"on of the upreme Court$ Expanded Jrisdi!tion Through the enactment of epu!l"c epu!l"c Act #o$ 9%-%, the &ur"sd"ct"on &ur"sd"ct"on of the CTA CTA has !een expanded to "nclude not onl' c"*"l tax cases !ut also cases that are cr"m"nal "n nature, as well as local tax cases, propert' taxes and nal collect"on of taxes$ 0ursuant to the pro*"s"ons of epu!l"c Act #o$ 11%5 and other laws pr"or to $A$ 9%-%, the Court of Tax Appeals reta"ns exclus"*e appellate &ur"sd"ct"on to re*"ew !' appeal, the follow"ng: 1$ +ec" +ec"s" s"on ons s of the the Comm Comm"s "ss" s"on oner er of 2nte 2ntern rnal al e*en e*enue ue "n case cases s "n*o "n*ol* l*"n "ng g d"sput d"s puted ed asses assessme sments nts,, refun refunds ds of "nter "nternal nal re*en re*enue ue taxes, taxes, fees fees or other other charges, penalt"es "mposed "n relat"on thereto, or other matters ar"s"ng under the #at"onal 2nternal e*enue Code or other law or part of law adm"n"stered !' the ureau of 2nternal e*enue; %$ +ec"s" +ec"s"ons ons of the Comm"ss Comm"ss"on "oner er of Custom Customs s "n cases "n*ol*" "n*ol*"ng ng l"a!"l l"a!"l"t' "t' for customs dut"es, fees or other mone' charges; se"ure, detent"on or release of propert propert' ' a8ected; a8ected; nes, nes, forfe"tur forfe"tures es or other penalt"es penalt"es "mposed "mposed "n relat"o relat"on n thereto; or other matters ar"s"ng under the Customs
?;
$ 2n automat"c re*"ew cases where such dec"s"ons of the Comm"ss"on of Customs fa*ora!le to the taxpa'er "s ele*ated to the ecretar' of @"nance (ec$ %15, TCC); and 4$ +ec"s"ons of the ecretar' of Trade and 2ndustr', "n the case of non agr"cultural product, commod"t' or art"cle, or the ecretar' of Agr"culture, "n the case of agr"cultural product, commod"t' or art"cle, "n connect"on w"th the "mpos"t"on of the Ant"+ump"ng +ut', Counter*a"l"ng and afeguard +ut' =epu!l"c Act #os$ ->51 and ->5%, (1999) ec$ .1 (a) and (p), and epu!l"c Act --..?$ Bnder epu!l"c Act #um!er 9%-%, the CTAs or"g"nal appellate &ur"sd"ct"on was expanded to "nclude the follow"ng: 1$ Cr"m"nal cases "n*ol*"ng *"olat"ons of the #at"onal 2nternal e*enue Code and the Tar"8 and Customs Code; %$ +ec"s"ons of the eg"onal Tr"al Courts (TC) "n local tax cases; $ +ec"s"ons of the Central oard of Assessment Appeals (CAA) "n cases "n*ol*"ng the assessment and taxat"on of real propert'; and 4$ Collect"on of "nternal re*enue taxes and customs dut"es the assessment of wh"ch ha*e alread' !ecome nal$ chanro!lesD The Court of Tax Appeals was created under epu!l"c Act #o$ 11%5$ 2t "s a spec"al court of l"m"ted &ur"sd"ct"on$ epu!l"c Act #o$ 9%-% expanded the &ur"sd"ct"on of the Court of Tax Appeals, ele*at"ng "ts ran/ to the le*el of a colleg"ate court w"th spec"al &ur"sd"ct"on and enlarg"ng "ts mem!ersh"p$ The Court of Tax Appeals (CTA) "s now of the same le*el as the Court of Appeals, possess"ng all the "nherent powers of a Court of Just"ce, and shall cons"st of a 0res"d"ng Just"ce and *e (5) Assoc"ate Just"ces$ The "ncum!ent 0res"d"ng Judge and Assoc"ate Judges shall cont"nue "n oEce and !ear the new t"tles of 0res"d"ng Just"ce and Assoc"ate Just"ces$ The 0res"d"ng Just"ce and the most en"or Assoc"ate Just"ce shall ser*e as cha"rmen of the two (%) +"*"s"ons$ The add"t"onal three () Just"ces and succeed"ng mem!ers of the Court shall !e appo"nted !' the 0res"dent upon nom"nat"on !' the Jud"c"al and ar Counc"l$ The 0res"d"ng Just"ce shall !e so des"gnated "n h"s appo"ntment, and the Assoc"ate Just"ces shall ha*e precedence accord"ng to the date of the"r respect"*e appo"ntments, or when the appo"ntments of two (%) or more of them shall !ear the same date, accord"ng to the order "n wh"ch the"r appo"ntments were "ssued !' the 0res"dent$ The' shall ha*e the same ual"cat"ons, ran/, categor', salar', emoluments and other pr"*"leges, !e su!&ect to the same "nh"!"t"ons and d"sual"cat"ons, and en&o' the same ret"rements and other !enets as those pro*"ded for under ex"st"ng laws for the 0res"d"ng Just"ce and Assoc"ate Just"ces of the Court of Appeals$cralaw
The 0res"d"ng Just"ce and Assoc"ate Just"ces shall hold oEce dur"ng good !eha*"or, unt"l the' reach the age of se*ent' (>.), or !ecome "ncapac"tated to d"scharge the dut"es of the"r oEce, unless sooner remo*ed for the same causes and "n the same manner pro*"ded !' law for mem!ers of the &ud"c"ar' of eu"*alent ran/$F The CTA ma' s"t en !anc or "n two (%) +"*"s"ons, each +"*"s"on cons"st"ng of three () Just"ces$cralaw @our (4) Just"ces shall const"tute a uorum for sess"ons en !anc and two (%) Just"ces for sess"ons of a +"*"s"on: 0ro*"ded, That when the reu"red uorum cannot !e const"tuted due to an' *acanc', d"sual"cat"on, "nh"!"t"on, d"sa!"l"t', or an' other lawful cause, the 0res"d"ng Just"ce shall des"gnate an' Just"ce of other +"*"s"ons of the Court to s"t temporar"l' there"n$cralaw The aErmat"*e *otes of four (4) mem!ers of the Court en !anc or two (%) mem!ers of a +"*"s"on, as the case ma' !e, shall !e necessar' for the rend"t"on of a dec"s"on or resolut"on$cralaw The CTA shall ha*e a Cler/ of Court and three () +"*"s"on Cler/s of Court who shall !e appo"nted !' the upreme Court$ #o person shall !e appo"nted Cler/ of Court or +"*"s"on Cler/ of Court unless he "s dul' author"ed to pract"ce law "n the 0h"l"pp"nes$ The Cler/ of Court and +"*"s"on Cler/s of Court shall exerc"se the same powers and perform the same dut"es "n regard to all matters w"th"n the CourtGs &ur"sd"ct"on, as are exerc"sed and performed !' the Cler/ of Court and +"*"s"on Cler/s of Court of the Court of Appeals, "n so far as the same ma' !e appl"ca!le or analogous; and "n the exerc"se of those powers and the performance of those dut"es the' shall !e under the d"rect"on of the Court$ The Cler/ of Court and the +"*"s"on Cler/s of Court shall ha*e the same ran/, pr"*"leges, salar', emoluments, ret"rement and other !enets as those pro*"ded for the Cler/ of Court and +"*"s"on Cler/s of Court of the Court of Appeals, respect"*el'$cralaw #o Just"ce or other oEcer or emplo'ee of the CTA shall "nter*ene, d"rectl' or "nd"rectl', "n the management or control of an' pr"*ate enterpr"se wh"ch "n an' wa' ma' !e a8ected !' the funct"ons of the Court$ Just"ces of the Court shall !e d"sual"ed from s"tt"ng "n an' case on the same grounds pro*"ded under ule one hundred th"rt'se*en of the ules of Court for the d"sual"cat"on of &ud"c"al oEcers$ #o person who has once ser*ed "n the Court "n a permanent capac"t', e"ther as 0res"d"ng Just"ce or as Assoc"ate Just"ce thereof, shall !e ual"ed to pract"ce as counsel !efore the Court for a per"od of one (1) 'ear from h"s ret"rement or res"gnat"on$cralaw The CTA shall ha*e "ts pr"nc"pal oEce "n Hetro Han"la and shall hold hear"ngs at such t"me and place as "t ma', !' order "n wr"t"ng, des"gnate$cralaw The CTA shall exerc"se &ur"sd"ct"on as follows:chan ro!les *"rtual law l"!rar'
a$ 3xclus"*e appellate &ur"sd"ct"on pro*"ded:chanro!les*"rtuallawl"!rar'
to
re*"ew
!'
appeal,
as
here"n
1$ +ec"s"ons of the Comm"ss"oner of 2nternal e*enue "n cases "n*ol*"ng d"sputed assessments, refunds of "nternal re*enue taxes, fees or other charges, penalt"es "n relat"on thereto, or other matters ar"s"ng under the #at"onal 2nternal e*enue or other laws adm"n"stered !' the ureau of 2nternal e*enue; %$ 2nact"on !' the Comm"ss"oner of 2nternal e*enue "n cases "n*ol*"ng d"sputed assessments, refunds of "nternal re*enue taxes, fees or other charges, penalt"es "n relat"ons thereto, or other matters ar"s"ng under the #at"onal 2nternal e*enue Code or other laws adm"n"stered !' the ureau of 2nternal e*enue, where the #at"onal 2nternal e*enue Code pro*"des a spec"c per"od of act"on, "n wh"ch case the "nact"on shall !e deemed a den"al; $ +ec"s"ons, orders or resolut"ons of the eg"onal Tr"al Courts "n local tax cases or"g"nall' dec"ded or resol*ed !' them "n the exerc"se of the"r or"g"nal or appellate &ur"sd"ct"on; 4$ +ec"s"ons of the Comm"ss"oner of Customs "n cases "n*ol*"ng l"a!"l"t' for customs dut"es, fees or other mone' charges, se"ure, detent"on or release of propert' a8ected, nes, forfe"tures or other penalt"es "n relat"on thereto, or other matters ar"s"ng under the Customs $ +ec"s"ons of the ecretar' of Trade and 2ndustr', "n the case of nonagr"cultural product, commod"t' or art"cle, and the ecretar' of Agr"culture "n the case of agr"cultural product, commod"t' or art"cle, "n*ol*"ng dump"ng and counter*a"l"ng dut"es under ect"on .1 and .%, respect"*el', of the Tar"8 and Customs Code, and safeguard measures under epu!l"c Act #o$ --.., where e"ther part' ma' appeal the dec"s"on to "mpose or not to "mpose sa"d dut"es$cralaw !$ Jur"sd"ct"on o*er cases "n*ol*"ng pro*"ded:chanro!les*"rtuallawl"!rar'
cr"m"nal
o8enses
as
here"n
1$ 3xclus"*e or"g"nal &ur"sd"ct"on o*er all cr"m"nal o8enses ar"s"ng from *"olat"ons of the #at"onal 2nternal e*enue Code or Tar"8 and Customs Code and other laws adm"n"stered !' the ureau of 2nternal e*enue or the ureau of Customs: 0ro*"ded, howe*er, That o8enses or felon"es ment"oned "n th"s paragraph where the
pr"nc"pal amount o taxes and fees, exclus"*e of charges and penalt"es, cla"med "s less than ne m"ll"on pesos (01,...,...$..) or where there "s no spec"ed amount cla"med shall !e tr"ed !' the regular Courts and the &ur"sd"ct"on of the CTA shall !e appellate$ An' pro*"s"on of law or the ules of Court to the contrar' notw"thstand"ng, the cr"m"nal act"on and the correspond"ng c"*"l act"on for the reco*er' of c"*"l l"a!"l"t' for taxes and penalt"es shall at all t"mes !e s"multaneousl' "nst"tuted w"th, and &o"ntl' determ"ned "n the same proceed"ng !' the CTA, the l"ng of the cr"m"nal act"on !e"ng deemed to necessar"l' carr' w"th "t the l"ng of the c"*"l act"on, and no r"ght to reser*e the ll"ng of such c"*"l act"on separatel' from the cr"m"nal act"on w"ll !e recogn"ed$ %$ 3xclus"*e appellate &ur"sd"ct"on "n cr"m"nal o8enses:chanro!les *"rtual law l"!rar' a$ *er appeals from the &udgments, resolut"ons or orders of the eg"onal Tr"al Courts "n tax cases or"g"nall' dec"ded !' them, "n the"r respected terr"tor"al &ur"sd"ct"on$ !$ *er pet"t"ons for re*"ew of the &udgments, resolut"ons or orders of the eg"onal Tr"al Courts "n the exerc"se of the"r appellate &ur"sd"ct"on o*er tax cases or"g"nall' dec"ded !' the Hetropol"tan Tr"al Courts, Hun"c"pal Tr"al Courts and Hun"c"pal C"rcu"t Tr"al Courts "n the"r respect"*e &ur"sd"ct"on$cralaw c$ Jur"sd"ct"on o*er tax collect"on cases as here"n pro*"ded:chanro!les *"rtual law l"!rar' 1$ 3xclus"*e or"g"nal &ur"sd"ct"on "n tax collect"on cases "n*ol*"ng nal and executor' assessments for taxes, fees, charges and penalt"es: 0ro*"ded, howe*er, That collect"on cases where the pr"nc"pal amount of taxes and fees, exclus"*e of charges and penalt"es, cla"med "s less than ne m"ll"on pesos (01,...,...$..) shall !e tr"ed !' the proper Hun"c"pal Tr"al Court, Hetropol"tan Tr"al Court and eg"onal Tr"al Court$ %$ 3xclus"*e appellate &ur"sd"ct"on "n tax collect"on cases:chanro!les *"rtual law l"!rar' a$ *er appeals from the &udgments, resolut"ons or orders of the eg"onal Tr"al Courts "n tax collect"on cases or"g"nall' dec"ded !' them, "n the"r respect"*e terr"tor"al &ur"sd"ct"on$ !$ *er pet"t"ons for re*"ew of the &udgments, resolut"ons or orders of the eg"onal Tr"al Courts "n the 3xerc"se of the"r appellate &ur"sd"ct"on o*er tax collect"on cases or"g"nall' dec"ded !' the Hetropol"tan Tr"al Courts, Hun"c"pal Tr"al Courts and Hun"c"pal C"rcu"t Tr"al Courts, "n the"r respect"*e &ur"sd"ct"on$cralaw The Court shall ha*e the power to adm"n"ster oaths, rece"*e e*"dence, summon w"tnesses !' su!poena duces tecum, su!&ect "n all respects to the same restr"ct"ons and ual"cat"ons as appl"ed "n &ud"c"al proceed"ngs of a s"m"lar nature$ The Court shall, "n accordance w"th ule se*ent'one of the ules of Court, ha*e the power to
pun"sh for contempt for the same causes, under the same procedure and w"th the same penalt"es pro*"ded there"n$ ho Ha' Appeal; Hode of Appeal; 38ect of Appeal$ K An' part' ad*ersel' a8ected !' a dec"s"on, rul"ng or "nact"on of the Comm"ss"oner of 2nternal e*enue, the Comm"ss"oner of Customs, the ecretar' of @"nance, the ecretar' of Trade and 2ndustr' or the ecretar' of Agr"culture or the Central oard of Assessment Appeals or the eg"onal Tr"al Courts ma' le an appeal w"th the CTA w"th"n th"rt' (.) da's after the rece"pt of such dec"s"on or rul"ng or after the exp"rat"on of the per"od xed !' law for act"on as referred to "n ect"on >(a)(%) here"n$cralaw Appeal shall !e made !' l"ng a pet"t"on for re*"ew under a procedure analogous to that pro*"ded for under ule 4% of the 199> ules of C"*"l 0rocedure w"th the CTA w"th"n th"rt' (.) da's from the rece"pt of the dec"s"on or rul"ng or "n the case of "nact"on as here"n pro*"ded, from the exp"rat"on of the per"od xed !' law to act thereon$ A +"*"s"on of the CTA shall hear the appeal: 0ro*"ded, howe*er, That w"th respect to dec"s"ons or rul"ngs of the Central oard of Assessment Appeals and the eg"onal Tr"al Court "n the exerc"se of "ts appellate &ur"sd"ct"on appeal shall !e made !' l"ng a pet"t"on for re*"ew under a procedure analogous to that pro*"ded for under rule 4 of the 199> ules of C"*"l 0rocedure w"th the CTA, wh"ch shall hear the case en !anc$cralaw All other cases "n*ol*"ng rul"ngs, orders or dec"s"ons led w"th the CTA as pro*"ded for "n ect"on > shall !e raLed to "ts +"*"s"ons$ A part' ad*ersel' a8ected !' a rul"ng, order or dec"s"on of a +"*"s"on of the CTA ma' le a mot"on for recons"derat"on of new tr"al !efore the same +"*"s"on of the CTA w"th"n fteen (15) da's from not"ce thereof: 0ro*"de, howe*er, That "n cr"m"nal cases, the general rule appl"ca!le "n regular Courts on matters of prosecut"on and appeal shall l"/ew"se appl'$cralaw #o appeal ta/en to the CTA from the dec"s"on of the Comm"ss"oner of 2nternal e*enue or the Comm"ss"oner of Customs or the eg"onal Tr"al Court, pro*"nc"al, c"t' or mun"c"pal treasurer or the ecretar' of @"nance, the ecretar' of Trade and 2ndustr' and ecretar' of Agr"culture, as the case ma' !e shall suspend the pa'ment, le*', d"stra"nt, andMor sale of an' propert' of the taxpa'er for the sat"sfact"on of h"s tax l"a!"l"t' as pro*"ded !' ex"st"ng law: 0ro*"ded, howe*er, That when "n the op"n"on of the Court the collect"on !' the aforement"oned go*ernment agenc"es ma' &eopard"e the "nterest of the Io*ernment andMor the taxpa'er the Court an' stage of the proceed"ng ma' suspend the sa"d collect"on and reu"re the taxpa'er e"ther to depos"t the amount cla"med or to le a suret' !ond for not more than dou!le the amount w"th the Court$cralaw 2n cr"m"nal and collect"on cases co*ered respect"*el' !' ect"on >(!) and (c) of th"s Act, the Io*ernment ma' d"rectl' le the sa"d cases w"th the CTA co*er"ng amounts w"th"n "ts exclus"*e and or"g"nal &ur"sd"ct"on$cralaw
Appeal to the Court of Tax Appeals 3n anc$ K #o c"*"l proceed"ng "n*ol*"ng matter ar"s"ng under the #at"onal 2nternal e*enue Code, the Tar"8 and Customs Code or the
