pat xil The Court of Tax Appeals (RA 14 and its Expanded Juris i dicti (RA9282) 9282 was approved on March 30, 2004 to 2 April 23, 2004 Peeters 4152. Salient features of RA 9282: > The CTA's rank was elevated to the level of a Collegiate court with special jurisdiction, and a new Division was created. | 2 The CTA is now of the same level as the Court of Appeals, possesses all the inherent powers of an appellate court. | | 2 Itconsists of a Presiding Justice and eight (8) Associate Justices. It may sit en banc or in three (3) Divisions, Each division consisting of three (3) Justices. Five (5) Justices shall constitute I a quorum for session's en banc and two (2) Justices for sessions of a Division. ‘The affirmative votes of four (4) members of the Court en banc or } two (2) members of a Division, as the case may be, shall be k necessary for the rendition of a decision or resolution. Aparty adversely affected by a resolution of a Division of the CTA ‘on a motion for reconsideration or new trial may file a petition with } the CTA en banc. 1183, Salient features of RA 9503 (June 12, 2008) (The law that created an additional division in the CTA) Answer, 8) The CTA now has three (3) divisions of three (3) members, 5) Five (6) justices of the court will constitute @ quorum fo en bang; Scanned with CamScannerstitute a Quorum for sessions oF ‘a iii, justices will Om uted due to any vacancy, diggy, epee lawful cause, the presiding ci designate any justice of the Division OF eet ly therein. Ta a specialized court composeg field of taxation and to a ‘Scanned with CamScannera Nature of the jurisdiction of the CTA: 1158. ; wer. Nature of the jurisdiction Of the CTA is ee court of special jurisdiction and as re cognizance of such matters as are Clearly within its It exercises exclusive jurisdiction Over cases involvit imi goles: ing criminal sively appellate. it can only take Jurisdiction, . All criminal offenses arising from the Tax Code e administered by the BIR where the principal eee fees, exclusive of charges and claims is Php 1.0 million or more. b. if the amount is Php1.0 million and less or where there is no specified amount claimed, CTA exercises appel jurisdiction thereof. im ee > TheCTAisnota Mere superior administrative agency or tribunal but is part of the judicial system of the Philippines. 1157, Purpose of the jurisdiction of the CTA: Answer. To review decisions andior matters properly brought before iton appeal by an aggrieved taxpayer, ee: a -{etieni APD 1158. Powers of the Court of Tax Appeals: Scanned with CamScanner eee _LlT—CCCC"#E"“#FE._._.{d the collection of the tax pending appeal, ‘on cases brought before it. GIR - (1) in cases involvin, ds ¢ internal revenue taxes, feo le thereto, or (2) Other matters _ or other laws, part of laws, or special (CTA Division) Scanned with CamScannerovernment under Sec. 2315 of the (cra Division) Tarifand Customs Code; ‘ Decisions of the Secretary of Trade and Industry fui case of non-agricultural product, commodi any ~ in the secretary of Agriculture - in the conan aaa: and the commodity or article, involving dumping duti prod countervailing duties under Secs. 301 and 302 tes Seth of the Tariff and Customs Code, and safeguard ee under RA No. 8800, where eith eae r C ler party mi decision to impose or not to inpeseesA tne Division) - who imposes the special duties? 4. Dumping duties (Non-agricultural products, commodities or articles) - Secretary of Trade and Industry. 2. Countervailing duties (Agricultural products, commodities orarticles) Secretary of Agriculture; 3. Marking duties - Commissioner of Custom: President of the 4, Retaliatory or discriminatory duties _ Philippines. ie Scanned with CamScannerthe filing of such civil action separately from the crimina| action will be recognized. appellate jurisdiction in criminal offenses ~ (a) Over ee oes: resolutions or orders of the RTC lly decided by them, in their respective and (2) Over petitions for review of the or orders of the RTC in the exercise ‘over tax cases originally decideg | Courts, Municipal Trial Courts, and ourts in their respective jurisdiction, in tax collection cases involving or taxes, fees, charges and Scanned with CamScannergonably filed before it. The rey mm eon of the CIR. (Collector va, eo, of the taxpa S. Yuseco, 3 Sopa ag" @ppeal the joes the CTA have jurisdicti 461. 00eS | diction over tax cases ; 1 questioned revenue rulings or Orders, of the cigyving nswer- Yes. The jurisdiction to Feview the ruli jptheCTA and not tothe RTC. The questimenr te te CIR pertains RMC No. 43-91 are actually rulings of op MONO: 15:91 and implementing the Tax Code on the taxabiity of Por eeclk Sec. 7. RA 1125, itis provided that the “decisions of th ops. Under matters arising under the NIRC or other laws oe CIR on other administered by the BIR" shall be appealable to the Cee of laws Question on the validity of a Revenue 2 brought to the attention of the regular court, Regulation should be Question on the validity of a BIR Ruling iss: is appealable to the Sec. of Finance and sien iic pec, (exhaustion of administrative remedy before Judicial remedy) : 1162. Does the CTA have jurisdiction over the cancellation of Tax Credit Certificate by the One Stop Shop inter- Agency Tax Credit and Duty Drawback Center of the Bureau of Customs? i Answer. The CTA has no jurisdiction over decisions of the said agency, the taxpayer or petitioner's remedy against the cancellation - ihe fax Credit rere ehould bea corvan potion Dore he regular courts, not a tax protest case before the CTA. (Pilipinas Shell Petroleum Corporation vs. Commissioner of Customs, 559 SCRA Scanned with CamScannerthe BIR or the BC where peep fees, exclusive of charges ion Php 1.0 million or where there jg the offenses or penalties shall hy the jurisdiction of the CTA shay; the Rules of Court to the contrary nal action and the eespondieg civil f civil liability for taxes and penalties shay neo ‘instituted with, and jointly 1g by the CTA, the filing of the sarily carry with it the filing reserve the filing of such ciyi) action will be recognized, Scanned with CamScannerwho has the power to reviey W the j : IR of tax laws and his decision on tag elation of the 4165+ wer. Sec. 4, NIRC provides: : “the ae Code and other tax laws shale 0 iiterpret the Provisions otal jurisdiction of the CIR, of , On the other hand, fun I _rev es, penalties imposed in relation thereto, ersing under the Tax Code or other laws or istered by the BIR is vested in the CIR, srolate urisdiction of the CTA, Under the excl 466. Does the CTA have jurisdiction over "involving the BIR and the PNO ( instrumentalities)? t the controversy both government Answer. P. D. 42 mandates that all cases involving questions of law between or among departments, bureaus, offices, agencies and instrumentalities of the National Government including GOCCs shell be administratively settled and adjudicated by the Secretary of ~ dustice. yeni ont In so far as assessment of deficiency taxes are concerned the _ BIRhasjurisdictionoverGOCCs. Scanned with CamScanner nethe Secretary of Finance Of the favorably upon a customs protest (in : review by the Secretary of Finance in where the value of the IMportation Not rendered a decision being, if the texpare: Scanned with CamScanner. The filing of a bond may be dispey ‘ yore ined that the method in the collection ae) by th teat an IeVY) IS NOt Sanctioned by ot SK of ia and Jinkee J. Pacquiao vs, ‘ CTA rae 2016) is 9 The computation of the bond i; exclusive of surcharge, interest and other pena| x seasonably disputed an assess, 4169: within four (4) months from nubian a "ns documentary evidences in Support of his dis, i the CIR revolved the matter by denying his dispute, Within 30 days from receipt of the denial X appealed to the CTA. (a) Can the BIR insist on tax Collection pending an appeal? (b) How will the BIR collect the tax Pending X’s appeal? (c) Can X file an injunction to stop CIR from collection? 's based on the Main tax assessed ties, Answer. (a) Yes, BIR can still enforce collection even if there is already an appeal pending before the CTA. Sec. 11, RA 1125 provides the general rule that an appeal to the CTA from the decision of the CIR will not suspend the payment, levy, distraint and/or sale of any property of the taxpayer for the satisfaction of his tax liability as. provided by existing law. (b) In the Answer to X’s Petition fc Scanned with CamScanner ee d"#e......_eeeeein appellate proceedings. (CIR vs. La Suerte Cigar é tte Factory) ears of the BIR are authorized to commence tax ‘civil actions before the regular courts and the CTq, to institute appeal proceedings before the tion of the Solicitor General of the CTA will be fact 1 appeal by the Supreme Scanned with CamScannerIR vs. Embroid ecord. (Cl lery & Garment: eer 2, 1999) Industries (hs), March no. Who may appeal to the Court of Tax Appeals? wer. Any Person, association or corporati fected Arg decision o* ruling of he CIR, CC, SF, CBA a RTC involving local taxes in the exercise of: their original or os asia is diction, Sec. of Trade and Industry and Sec, caiakoe ce vocal duties may fe an he to the CTA. Thus, Goverment tainly not one of them. (Acting Collector of C, ca Dees reat ‘ustoms vs. Court of 4173. Modes of Appeal before the CTA: Answer. a . a) By filing a petition for review under Rule 42, RRC before a division of the CTA - involving decision, ruling or inaction of the CIR, CC. SF, STI and SA or the RTC. b) By filing a petition for review under Rule 43, RRC before the CTA en banc — involving decisions or rulings of the CBAA and the RTC in the exercise of its appellate jurisdiction. == 1174, Period of appeal to the Court of Tax Appeals: ‘Answer. The law provides that CIR, CC or SF shall be brought the receipt of such adverse ayer. Within Scanned with CamScanner a OOOO eeeime division within 15 da trial before the sai YS from Ai en for new ted by a resolution of CTA in Divi Vision gy apenocierest eed ‘or motion for new trial — ~may file 3 etpemotic ee with the CTA en banc. bya eon Or ruling of the CTA ep ‘the SC @ verified petition for ro VIEW on Scanned with CamScannereffect of premature appeal to the CTA; 476. ‘ uel When a taxpayer appeals from an ass a ut previously contesting the same, eat the CTA has no jurisdiction to entertain ti in 2 ‘SCRA 3) the CTA vested with jurisdiction to act on € petition qT oF review filed by a taxpayer whose protest Mai cerlier dismissed for having been filed out of time? 'Sessment of the CIR the appeal is Premature the appeal, (CIR vs. Villa, No. The CTA has no jurisdiction. A taxpayer is no longer eed to contest the correctness of an akasaerane after the lapse of 30-days from the receipt thereof. (NOTE: The CTA has no jurisdiction over UNCONTESTED (not disputed) assessment and FINAL assessment) 478. Effect of an assessment that has been cancelled on rae taxpayer's appeal to the CTA: Answer. Where the CIR cancelled an | was made by reason of the fact that a appeal assessment on the same tax obligation had become final, the cancellation had the of depriving the CTA the j ‘cancelled see? ‘Scanned with CamScanner ‘reeris contemplated by the CIR, CC o- taxpayer's request for reconsideration it constitute the "decision" that is y cted to the Secretary of Finance [the running of the reglamentary period within » HE IS NOT AUTHORIZED by law to ess the decision affects the lic vs. Lim Teng, March 31, A 148) Scanned with CamScannera A letter that states that the c| i by distraint or levy. R is going to pursue Collection 6. Filing by the BIR of a civil suit for col tax is considered a denial of the request orca coeency ae : (CIR vs. Union Shipping Corp., 185 So} 547) 7. A letter that states that the CIR i motion for reconsideration. Could entertain no more 480. HOW to determine what decisions are appealable to the CTA? wer. In determining what decisions should be ay CTA, the rule of ejusdem generis should be eT, issue of unfair competition in the use of a simplified set of bookkeeping records is not within the jurisdiction of the CTA because the issue is not related to any protested assessment or tax refund. (Ollada vs. CTA, 99 Phil. 604) 1181, Requisites for the validity of the CIR’s decision on tax 7 eiit 0848 Sart Scanned with CamScannerCourt of Tax Appeals: ‘of record, they are judicial in nature but vof procedure and evidence, (Per., vs, the proceedings before the ct, and merely suppletory Scanned with CamScanner| Ifthe defense of prescription will not hold water, he should Pay the tax and seek the recovery thereof under the law gov ® law governin refunds of internal revenue taxes erroneously or illegally paig, 8 > Another possible recourse, though risky one because it has not yet been settled by the SC, is to file a second request for reconsideration with the CIR. NOTE: The above remedy is available only when the taxpayer has | defenses against the assessment. Otherwise, payment and subsequent refund is not available! ey eee < the CIR amend an assessment pending appeal the CTA? Me Scanned with CamScannerns, the State cannot be estopped fo 023 (Commr. vs. Armando Aba Py. the neglect of ts agent neg #916 Co. nc, Apri 16, 1968 , 23 SCRA 1132, Commr, ne. 2 estoppel does not apply to preclude the Subsequent findings of taxability ne Rule on Estoppel cannot be invoked 3 : preclude collection of taxes that a 8 ciorer government. - the Government is never estopped to collect egitim. ate 2 because of the error committed by its (Visayan oa Terminal Co, vs. CIR, 2/27/65); in and assessments (Tan Guan vs. CTA and CIR, > Erroneous application and enforcement of law by public officers do not block the subsequent correct a a ‘ Rodriquez Inc. vs. Collector, July 31, 1: a ue Estoppel does not apply to raise defenses even if « first time on appeal. (Comr The government must Ww bind the private parties. (Con 1192. Rule on estoppel There is estoppel agair 104 Phil. 819) ‘Scanned with CamScannerOT res: | Even if the ordinary courts have already taken cognizance of a tax case that likewise falls under the jurisdiction of the CTa (e.g, - a civil case for collection was filed by the BIR during the 30-day period to appeal a decision with the CTA) A motion can be made in the ordinary court to give way to the exercise | of jurisdiction by the CTA. | 2) CTAisa court of record and it is a part of ‘our judicial system, it can adopt its own rules of procedure, although the Rules of Court can apply to it suppletorily, and it is not strictly bound by the rules of evidence. 3) CTA is designed to act only on protests of private persons adversely affected by taxes, duties and other charges under laws enforced by the BIR and the Bureau of Customs. we 4) CTA cannot motu propio acquire jurisdiction to review tax cases, (GIR vs, Vella & CTA, 22 SCRA 4) the CTA may, even without being raised by parties, sio raise the question of jurisdiction and dismiss the ited beyond the reglamentary period. (Ker \CRA Scanned with CamScannercTA has no authority to neither future guidance of the BIR nor cnn Advisory Opinions for does not allow a petition for decla Consultas, R, A 4128 involving taxes under NIRC and Tee ey telief in on an appeal of ruling of CIRIce he ep ‘Rodriguez Vs. Blaquera, National etical go Phi) Dental Surly Co, vs Moor = CTA cannot entertain appeals of ruli Customs contained in a circular eee of the Commissioner of CTA cannot issue writs of prohibition ) of an appealed case. Of injunction independently CTA may grant injunction without 10) deposit the amount claimed or CU to POSSIBLE? - When the action of the CIRICC is found to be contrary to law. 8) hat 41s 41) CTA cannot entertain an action for the Commissioner of Customs to decide the case one way ie other. (Lazaro vs. Millarez (CTA case) 1955) ick 12) CTA may grant injunction | si shown that collection prescribed. (Collector vs. Collector, 101 Phil. 239) — 13) 14) 15) 16) ‘Scanned with CamScannerAppeals to the CTA must be by way of petition for review, Decisions of the CTA are appealable to the SC by petition for review on certiorari, CTA is vested with jurisdiction to issue writs of certiorari and to determine whether or not there has been a grave abuse of discretion amounting to lack or excess of jurisdiction on the part of the RTC in issuing the interlocutory order in cases falling within its exclusive appellate jurisdiction. CTA has jurisdiction over petitions for certiorari assailing interlocutory orders issued by the RTC in local cases filed before it. ~ 20) Findings of facts of the CTA are not reviewable when supported "by substantial evidence RSPR + 21) Factual findings of the CTA may be reviewed by the SC only ‘ when there is an abuse, gross error, or improvident exercise of t of the CTA. (Coca Cola Export Corp. vs. Commr. chez vs. Commr. of Customs, 102 Phil. 37) ipee Scanned with CamScanner29) 30) 31) 32) Matters not raised on aa raised for the first tim he Administrative . le considered as new mateee Peal, because per a os The CIR on appeal cannot and different from that which HOM adopt theory iting shown by the BIR records and the gptevously pursued, as petition for review. ( Atlas vs, CIR to the amended 100 Phil. 172) , L-26911, CIR may compromise cases approval of said court, (Warneraa before the CTA without Collector, (CTA Case) Jan, 4, 1960) . Pictures Int. Corp. vs. Tax cases appealed to the SC g : preference other civil proceedings except ae ne Pees compensation and election cases. 2 A decision that the tax sought to be collected iti collected is already by prescription has the effect of a decision that ffeeen deficiency in respect to such tenagly Oh es Within 30 days from receipt of i the CTA, the aggrieved party | reconsideration and if m petition for certiorari within 15 to the Supreme Court if r CTA anymore. If pursuant to an Scanned with CamScanner saeProceed to the LBAA and then to the CBAA, to the ang fi to the SC; (Gamboa vs. Parroco, CTA Case’ 704, 77/0) CTA can assume jurisdiction over validity of distraint (Commr. Vs. Joseph, 8/30/62) fell CTA cannot have jurisdiction on forfeiture of Prohibiteg importations not involving customs Charges. CTA cannot review the decision of the CIR relating to the h Of real property forfeited in favor of the government. for failure to pay IR taxes. (Morales vs. Coll., CTA Case No. 517, 3/24) CTA has exclusive jurisdiction to decide on the Propriety of the imposition of dumping duty. (Sec. of Finance vs. Agana, 1/17/75) CTA assess damages not exceeding Php 500.00 against | an eppeliant whose appeal frivolous or dosgned to deen 41) question of whether or not to impose a deficiency tax iat ae eerie tetra ret auhin tie conpanscorcana Scanned with CamScannercounterclaims ancillary to the orig: (Republic vs. Limcao (CTA case), Jana 16, 1956) tition. , 1956) ; Any ancillary question or issue deprive it of its jurisdiction. Such pa to the CTA does ca tne deceased had really or ficttiously trenamination of Wheth her children, and whether or not Properties to contemplation of death, the transfer had Questions of limited grant of amn Secretary of Finance in an action pee As eran by the igsue Is incidental to the principal ‘A, because the Lacson, 107 Phil. 945) Controversy. (Collector vs, 9 494. Bureau of Customs’ cases brought before the CTA: a) Daud vs. Collector — A decision of the collector of Ci forfeiting a vessel found carrying prohi bited to the Commissioner of Customers and theta, oFe cia Aboitez & Co. vs. Collector—The legality 0 charges on exports imposed by the et the Commissioner, falls within the case involving liability to customs d b) ¢) Vicama vs. Phil Ports A Authority imposing 10% ¢ arrastre and stevedoring CTA because — 1. The CTA has a sp ‘Scanned with CamScanner2 CTA nowenjoys a ranked equal to that of the Court of Appeals, i i the CTA en ba votes of five (5) members of Mc of 2 me penton of a division, as the case bie be shall be iti if a decision or resolution. necessary for the rendition o' Disqualfications: ed or intervene directly or indirectly in the 2) Fe at oF corto) of any private enterprise which jn ae way may be affected by the functions of the CTA; They peal before the CTA as counsel for one (1) 2 year cou separation therefrom (Lame duck provision) They alified from sitting in any case on the same °) * Bponed for disqualification of judicial officers under Scanned with CamScanner