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1 TAXATION NOTES - COURT OF TAX APPEALS Jann Claudine M. Amago 3 – A Court of Tax Appeals The CTA is a court of special appellate jurisdiction and a part of our judicial system. Development Bank of the Philippines vs. CA The SC ruled that the CTA is not a mere superior administrative agency or tribunal but is a part of the judicial system of the Philippines. It is a reguar court vested with exclusive appellate jurisdiction over cases arising under the NIRC, TCC and the Assessment Law. The proceedings are judicial in nature but the CTA is NOT BOUND BY THE TECHNICAL RULES OF EVIDENCE . The Rules of Court applies only by analogy or in a suppletory character. Philippine Phosphate Fertilizer Corporation vs. CIR The SC ruled that the CTA is not governed strictly by the technical rules of evidence. Thus, while a petitioner could not move for new trial on the basis of newly discovered evidence, it does not mean that it is altogether barred from having a new trial on the ground of mistake and excusable negligence. Jurisdiction of the Tax Court (VITUG) The Court of Tax Appeals has an exclusive appellate jurisdiction over petitions for review filed by the taxpayer questioning: 1. Decisions of the Collector of Internal Revenue in cases involving a. disputed assessments; b. refunds of internal revenue taxes, fees or other charges; c. penalties imposed in relation thereto; d. other matters arising under the National Internal Revenue Code or other law or part of law administered by the Bureau of Internal Revenue; 2. Decisions of the Commissioner of Customs in cases involving a. liability for customs duties, fees or other money charges; b. seizure, detention or release of property affected ; c. fines, forfeitures or other penalties imposed in relation thereto; d. or other matters arising under the Customs Law or other law or part of law administered by the Bureau of Customs; 3. Decisions of the Secretary of Finance, in automatic review cases where such decision of the Secretary of Finance is adverse to the taxpayer. 4. Decisions of the Secretary of Trade and Industry in case of non-agricultural products and the Secretary of Agriculture in case of agricultural products, involving dumping and countervailing duties imposable under the TCC. However, the jurisdiction of the court is expanded to include in addition to the aforementioned srcinal or previous jurisdictions, the following new jurisdictions: (EXPANDED) 1. Exclusive srcinal jurisdiction over all criminal offenses under the NIRC and the TCC and other laws admissible by the BIR and BOC where the amount of taxes and fines is P1M or more; 2. Exclusive Appellate jurisdiction in criminal offense over appeals from the RTC whether in the exercise of its srcinal or appellate jurisdiction over tax cases where the amount involved is less than 1M; 3. Appellate jurisdiction over decisions of the Regional Trial Court on local taxes. 4. Appellate jurisdiction over the decisions of the Central Board and Assessment Appeals on real estate tax cases Significant Features of CTA (R.A. 9282) 1. Appeals The decision of the CTA division may be appealed to the CTA EN BANC. The decision of the CTA en banc may in turn be appealed to the SUPREME COURT only on pure questions of law. CTA division – CTA en banc – Supreme Court 2. CTA proceedings The CTA may sit en banc or in division, each consisting of 3 justices each. 5 justices shall constitute a quorum for sessions en banc and 2 justices for sessions for a division. Reversal of decision – affirmative votes of 5 members of the CTA en banc shall be necessary. Promulgation of a resolution, decision, or in all other cases – 2 members of the division. CTA is a court of record All cases filed before the CTA are litigated de novo so litigants are required to prove every minute aspect of their cases. The Court of Tax Appeals shall be a court of record and shall have a seal which shall be judicially noticed. It shall prescribe the form of its writs and other processes. It shall have the power to promulgate rules and regulations for the conduct of the business of the Court, and as may be needful for the uniformity of decisions within 2 its jurisdiction as conferred by law, but such proceedings shall not be governed strictly by technical rules of evidence. Issues cognizable by the CTA Once the CTA properly acquires jurisdiction by the filing of a petition for review, it can consider various issues that are essential for or incidental to the full and complete resolution of the case . The tax court is also competent to pass upon the incidental question on ownership of the property levied upon or distrained. Legality of Revenue Memorandum which are actually rulings or opinions of the CIR in implementing the Tax Code. The tax court should only take up issues raised at the administrative level . Modes of Appeal Decision appealed from Mode of appeal 1. Appeal 2. Decisions and rulings of the Central Board and Assessment Appeals RTC in the exercise of its appellate jurisdiction 3. Adverse decision or ruling of the CTA en banc Petition for review under Rule 42 within 30 days from the receipt of the decision or from the expiration of the period fixed by law for the official concerned to act in cases of inaction. A party adversely affected may file a motion for reconsideration or new trial before the same division. Petition for review under Rule 43. A party adversely affected by a resolution of a division of the CTA on a motion for reconsideration or new trial, may file a petition for review with the CTA en banc Petition for Review on Certiorari under Rule 45 through a verified petition before the Supreme Court Rules of procedure Before filing an appeal to the CTA en banc, file first a motion for reconsideration or a new trial with the division which rendered the adverse decision. File the petition for review before the CTA en banc within 15 days from the receipt of denial of the motion for reconsideration or new trial. From the en banc decision, the losing party may file with the Supreme Court a unified petition for review on certiorari under Rule 45. Period for CTA decisions A decision must be rendered by the CTA within 30 days but this is merely directory. Hence, all decisions signed after the lapse of the said period is valid. When distraint or levy shall issue Upon the issuance of any ruling, order or decision of by the CTA favourable to the National Government , the CTA shall issue an order authorizing the BIR, through the Commissioner to seize the properties. This remedy shall not be exclusive and not preclude the court from availing any other means. CTA shall not suspend the payment, levy, distraint and sale Generally , no appeal taken to the CTA from the decision of the CIR or RTC shall suspend the payment, levy, distraint or sale of any property. Unless , it may jeopardize the government or the taxpayer.
