CHAPTER 9 COURT OF TAX APPEALS before = Board of Tax Appeals (E.O. No.

. 401-A) abolished coz it was unconstitutional for being an undue delegation of legislative power before 1951 protest against tax assessments were not possible: pay tax first, question collection later in court by means of an ordinary action for refund R.A. 1125 (June 16, 1954) = COURT OF TAX APPEALS o Purpose of creation = have a centralized body well-versed in tax matters; prevent delay in disposition Salient features Judicial body Court of special jurisdiction Not strictly governed by technical rules of evidence Quasi-judicial agency Composed = Presiding judge; 2 associate judges (appointed by President from a list of at least 3 nominees prepared by the Judicial and Bar council) Disposition of cases = w/in 30 days from submission for decision o In writing o State clearly and distinctly the facts and law in w/c they are based o Signed by the judges concurring Requirement merely directory Powers o Administer oaths o Receive evidence o Summon witnesses = subpoena; subpoena duces tecum (documents,..) o Punish for contempt o Prescribe forms of writs and processes o Promulgate rules and regulations for the conduct of business Jurisdiction (Sec. 7, RA 1125) o Exclusive appellate jurisdiction Decision of CIR (dispute assessments, refunds, fees , other charges, penalties) Decision of CC Assessments, rulings of CIR not appealable Decisions = decision of CIR on the protest of the taxpayer against the assessments Letter reiterating previous demand for settlement = appealable Matters taken up in appeal must be included in the contested assessment Tax cases commenced by the Government is not w/in the jurisdiction of CTA o Compromise penalties = amounts collected by the BIR in lieu of criminal prosecution for violations committed by taxpayers

the payment of w/c is based on a compromise agreement validly entered into between the taxpayer and the Commissioner Sec. 7, RA. 1125 Imposition of compromise penalty w/o conformity of taxpayer = illegal and unauthorized Appealable decisions o Decisions of CIR o Decisions of Regional Director of a revenue region (Rev Regs No. 12-85) o Denial of administrative protest by CIR (Rev Regs No. 12-99) o Cases pending in the Office of the Collector of Customs Final decisions = finality rule (final nature of the determination) Tax collections not suspended during appeal o Exception = a motion to that effect was presented and granted by the court on the ground that such collection will jeopardize the interest of the taxpayer o Acceptable grounds May jeopardize the interest of the Govt/taxpayer Taxpayers willing to deposit amount being collected or to file a surety bond for not more than double the amount of the tax to be fixed by the court o Taxpayer may be required to show that the appeal is not frivolous o Other matters = those cases w/c do not necessarily involve the ff., but controversies w/c are still w/in the scope of the functions of the BIR and the Customs (principle of ejusdem generis) disputed assessments or refunds in the case of the BIR Customs protest or forfeiture cases Do not comprehend = unfair competition in the use of simplified bookkeeping records (Sec. 232 A) Prescriptive period of appeal = 30 days o Commences = from the date the taxpayer receives the appealable decision of CIR o Failure to appeal = renders the assessment final, executor and demandable (jurisdictional and non-extendible) o Motion for reconsideration = suspend the running of the period of appeal Not suspended if request does not advance new grounds not previously alleged Reiterations = do not suspend Pro forma request = submitted only for delay and will not interrupt running of period o Procedure on refund (sec. 204 c) = not available to revive the right of taxpayer to contest the validity of assessment Condition precedent to right to appeal Administrative actions = appealable decisions Collection by judicial remedies = appealable RA No. 7902 = Judiciary Reorganization Act of 1980 Rule 43 = appeals from the CTA and quasi-judicial agencies to CA

Not appealable o Interlocutory orders o Findings of fact of CTA (rule 43) supported by substantial evidence Substantial evidence = such kind of relevant evidence as a reasonable man might accept as adequate in support of a conclusion Issues & defences not raised in administrative protest = cannot be raised for the 1st time on appeal o Requirement of prior exhaustion of administrative remedies o Errors of administrative officers cannot jeopardize the financial position of the Govt (the state can never be in estoppels) Ancillary jurisdiction of CTA o The power to issue writs of prohibition and injunctions is only supplementary to its appellate jurisdiction (Sec. 11, RA 1125) Other matters o No advisory jurisdiction o No criminal jurisdiction (Sec. 17, RA 1125) Damages (Sec. 16, RA 1125) o Instituted appeal for delay = appellant may be liable for amount not exceeding P500