THE COURT OF TAX APPEALS

By
Jethro J. Villaruel
LLB 4

Contents of the report
Nature of the Court of Tax Appeals
Legal Bases of the CTA
Amendments ( RA 9282, RA 9503)
Powers of the CTA
Jurisdiction of the CTA
3/2/16

NATURE OF THE COURT OF TAX APPEALS
• The Court of Tax Appeals is a highly specialized body
created for the purpose of reviewing tax cases (CIR v.
General Foods (Phils), Inc. , G.R No. 143672, April 24,
2003).
• A Court of special or limited jurisdiction and as such, it
can only take cognizance as that matters that are
clearly within its jurisdiction (Ker & Co., Ltd. V. CTA, G.R
No. L-12396, January 31, 1962).
• The proceedings are technical of nature although the
CTA is not bound by the technical rules of evidence (R.A
1125 as amended, Sec. 8).
• Proceedings are governed by the Revised Rules of Court
of Tax Appeals (RRCTA)- A.M No. 05-11-07-CTA which
took effect on December 15, 2005. The Rules of Court
apply only suppletorily .

LEGAL BASES The creation and the operation of the Court of Tax Appeals is based on the following legal bases: • The Court of Tax Appeals was created by the virtue of RA 1125 enacted in June 16. 2004 and took effect on April 23.A 9282 was enacted in March 30. R. .A 1125. 2004. 2008 further amended R. 1954. • R.A 9503 which was enacted on June 12.A 9282 amended R. • R.A 1125.

• The expanded Jurisdiction of the Tax Court.A 9282 • The Court of Tax Appeals was elevated to the same level as the Court of Appeals (Sec. • Appeals from its decision en banc shall now made before the Supreme Court (Sec. 1). 19). .AMENDMENTS BY R.

 Increasing the number of division from 2 to three each division constituting of three justices (Section 1).A 9503 enlarged the organizational structure of the Court of Tax Appeals by:    Increasing the number of CTA justices from 6 to 9 as embodied in Section 1 of the said Republic Act. .A 9503 • R.AMENDMENTS OF R.

. 2.A 1125 amended Sec. 4. Rule 10. To punish contempt (R. Sec.A 1125 as amended. To summon witness by subpoena (R. To suspend the collection of tax pending appeal (RRCTA. To issue order authorizing distraint of personal property or to levy of real property.POWERS OF CTA 1. Section 1). 3. Section 10). 10). To require the production of papers or documents or subpoena duces tecum (R. A 1125 as amended. 5. 10).

Rule 12. 2). To assess damages against appellant if appeals to the CTA appears to be frivolous or dilatory (R. 16). 8). 9. as amended. 10. A 1125. Sec. as amended.A 1125. To administer Oaths (R. Sec. as amended Sec 10).6. A 1125. To render decisions on cases brought . To promulgate Rules and Regylation for the conduct of its business (R. Sec. To receive Evidence (RRCTA. 8. 7.

Power to issue writs of prohibition and injunctions is supplementary to its appellate jurisdiction. .

It may sit en banc or in three divisions. Consist of Presiding Justice and 8 Associate Justices appointed by the President upon the nomination of the Judicial and Bar Council. The Presiding Judge and the two Senior Associate Justices shall serve as the Chairpersons of the . 3. 2. each division consists of three justices.COMPOSITION AND APPOINTMENT OF MEMBERS 1.

2).A 9503. Sec. the Presiding justice shall choose a justice to sit in the vacant position temporarily (R. 2). But only a simple majority of the justices present is needed to promulgate a resolution or decision in all other cases (R. En Banc: To reverse the decision of the Divisions. inhibition. disqualification.A 9503. . due to any vacancy. the presence at the deliberation and affirmative vote of five members is necessary. disability or any other lawful causes. Sec.  Division: When the required quorum cannot be constituted.

Jurisdiction of the Court of Tax Appeals (RA 9282) .

The CTA can dismiss a case ex mero motu (on its own free will) (CIR v. The jurisdiction of the CTA over the subject matter can be challenged at any stage of the proceedings. January 2. The concentration of tax cases in one court can enhance the disposition of this cases since it will take them out of the jurisdiction of regular courts which admittedly do not have expertise in the field of taxation . G. Villa.R No. And for the lack of it. The CTA has jurisdiction over both civil and criminal aspects of a tax case. L-23988. 1968).

II. DA. Sec. Sec. Rule 2. Rule 4. Exclusive Original Jurisdiction (RRCTA. Tax collection cases decided by the RTCs in the exercise of their original jurisdiction involving final and executor assessments for taxes. Decisions or Resolutions or Motions for Reconsideration or the New Trial of the Court in Division in the Exercise of its Exclusive Appellate Jurisdiction over: 1. 2) A. and 3. BOC. 2) The Court shall sit en banc in the exercise of its administrative. ceremonial and adjudicative functions. EXCLUSIVE APPELATE JURISDICTION (RRCTA. DOF. Local Tax Cases decided by the RTCs in the exercise of their original jurisdiction. fees charges and penalties. DTI. Cases arising from the administrative agencies. .CT EN BANC I. where the principal amount of taxes and penalties claimed is less than 1 million.BIR. 2.

exclusive of charges and penalties claimed is 1 million pesos or more and. Resolutions.B. 2. Decisions. Resolutions. Tax Collection cases where the principal amount of taxes and fees. or Orders of Motions for Reconsideration or New Trial of the Court in Division in the Exercise of its Exclusive Original Jurisdiction over: 1. Criminal offenses arising from violations of the NIRC or TCC and other laws administered by the BIR or BOC . Decisions. C. or Orders of motion for Reconsideration or New Trial of the Court in Division in the Exercise of its Exclusive Original jurisdiction over: Criminal offenses arising from violations of the NIRC or TCC and other laws administered by the BIR or BOC.

Resolutions and Orders of the RTCs decided or resolved by them in the Exercise of their Appellate Jurisdiction over (via Petition for Review under Rule 43 of the Rules of Court): Local Taxes case. orders and resolutions of the RTC in local tax cases do not include real property tax which is ad valorem tax. NOTE: Real Property tax cases decided by the RTc are not under the CTAs jurisdiction. The jurisdiction of the CTA involves only those real property tax cases originally decided by the CBAA in the exercise of its appellate jurisdiction. Decisions. exclusive of charges and penalties claimed is less than 1 million . Criminal Offenses arising from violations of the NIRC and TCC and other laws administered by the BIR and BOC where the principal amount of taxes and fees. 2. Under Sec. 7 [a][5] of RA . Decisions.D. Tax Collection Cases where the principal amount of taxes and fees. exclusive of charges and penalties claimed is less than 1 million. 1. and 3.

sec 3 [b][1]). Criminal Offenses Those arising from violations of the NIRC and TCC and the other laws administered by the BIR and BOC. Regular Courts shall have jurisdiction in offenses or felonies where (RA 1125. where the principal amount of taxes and fees exclusive of charges and penalties claimed is P1 million or more (RRCTA .E. CTA DIVISION I. or . The principal amount of taxes and fees exclusive of charges and penalties claimed is less than 1 million.Decisions of the Central Board of Assessments Appeals (CBAA) in the Exercise of its Appellate Jurisdiction over cases involving the assessments and taxation of real properties originally decided by the provincial or city board of assessment appeals (via petition for Review under Rule 43 of the Rules of Court). rule 4. sec 7 [b] [1]): a. Exclusive Original Jurisdiction A.

the rules on jurisdiction in criminal cases shall be followed. Sec 7 [b][1] as amended). INCLUSION OF CIVIL ACTION IN CRIMINAL ACTION The criminal action and the corresponding civil action for the recovery of the civil liability for taxes and penalty shall be deemed jointly instituted in the same proceeding.A 1125. . No right to reserve the filing of such civil action separately from the criminal action shall be allowed or recognized. The jurisdiction of the CTA in this cases shall be appellate (R.NOTE: As to which court shall exercise jurisdiction.

A 1125. or RTC. [c][1]). Tax Collection Cases Those involving final and executory assessments for taxes. Sec. depending on their respective jurisdiction. exclusive of charges and penalties claimed is 1 million pesos or more (RRCTA. Rule 4. 7 [b][1]) . charges and penalties. fees. MeTC. Collection cases where the principal amount of taxes and fees exclusive of charges and penalties claimed is less than 1 million shall be tried by the proper MTC.B. Sec 3. where the principal amount of taxes and fees. The jurisdiction of the CTA in thsese cases shall be appellate (R.

II. In cases involving disputed assessments. Decisions of or Inaction by the Commissioner of Internal Revenue where the NIRC provides a Specific Period of Action (via petition for revie w under rule 42 of the Rules of Court) 1. S ecs 3[a]. 6 /1 2 3/ . Other matters arising under the NIRC or ot her laws administered by the BIR. Exclusive Apellate Jurisdiction (RRCTA. 3 [c][2]) A. Rule 4. fees or other charges. 3 [b][2]. re funds or Internal revenue taxes. penalties in relation thereto. or 2.

• The issue of whether or not BIR has the right to co llect taxes had already prescribed is the subject m atter falling under NIRC.• The term “other matters” is limited only by the qu alifying phrase that follows it. 2010).. Thus. Inc. G. 1692 25. It covers other cases that arise out of the NIRC or related laws administered by the BIR. November 17. the NIRC states that the collection of taxes is one of the duties of BIR. the appellate jurisdi ction of the CTA is not limited to cases to which in volves divisions of the CIR on matters relating to a ssessements or refunds. the issue of prescription of the BIR's right to collect ta xes may be considered to be covered by the term “other matters” over which the CTA has appellate j urisdiction (Commissioner of Internal revenue v. from the foregoing.R No. In connection therewith. Hambrecht & Quist Philippines. 6 /1 2 3/ .

Decisions of the Commissioner of Customs (via petition for review under Rule 42 of the Rules of Court) 1. seizures. detention or release of there property affected. or 2.NOTE: The Inaction of the CIR within the 180day period under Section 228 of the NIRC is deemed denial. fees or other money charges. In cases involving liabilities for Customs duties. fines. Other matters arising under the Customs Law or other Laws administered by the BOC. forfeitures or other penalties in relation thereto. 6 /1 2 3/ . B.

In situation where the collectors decision is favorable to the tax payer. no appeal can be taken in favor of the Government thus. 1989). Decisions of the Secretary of Finance on customs cases elevated for automatic review from decisions of the Commissioner of Customs which are adverse to the government under Sec.  REASON FOR THE PURPOSE OF AUTOMATIC REVIEW: To protect the Government against corrupt and conniving customs collector. G. December 22. a collector would have that absolute and unbridled discretion to determine whether the goods seized are dutiable or not.C.R No. Without such automatic review. 2315 of the Tariff and Customs Code (via a petition for review under Rule 42). 6 /1 2 3/ . Commissioner of Customs. making the decision final and the government deprived of any protection (Yaokasin v. 84111.

where either parties may appeal the decisions to impose or not to impose said duties (via petition for Review under Rule 42). where the principal amount of taxs and fees. and the Secretary of Agriculture in the case of agricultural product. E. Appeals from the Judgement. involving dumping and countervailling duties under Article 301 and 302. respectively of the Tariff and Customs Code. 6 /1 2 3/ . exclusive of charges and penalties. claimed is less than 1 million or whether there is no specified amount claimed. Decision of the Secretary of Trade and Industry in the case of the non-agricultural product commodity or article. and safeguard measures under R. commodity or article. resolutions or Orders of teh RTCs in their Original Jurisdiction in Criminal Cases arising from violations of the NIRC or TCC and other laws administered by the BIR or BOC.D.A 8800 (Safeguard Measures Act).

Sec 7 [b][2][b]) and. claimed is less than P1million. H. 6 /1 2 3/ . Appeals from the Judgements.F. Decisions. as amended. resolutions or orders of the RTC in the exercise of their Appellate Jurisdiction over tax cases originally decided by the MTc or the MCTCs (R. Resolutions or Orders of the RTC in Local Taxes Cases decided or resolved by them in the exercise of their Original Jurisdiction. Criminal Offenses over Petitions for Review of the Judgements. G. exclusive of charges and penalties. Resolutions.A 1125. or Orders of the RTC in the Tax Collection Cases where the principal amount of taxes and fees.

Rule 12. . 2). 2. In appeals in both civil and criminal cases where the Court grants a new trial pursuant to Section 2 Rule 53 and Section 12 Rule 124 of the Rules of Court (RRCTA.EVIDENCES FOR CTA Taking of Evidences The Court may following cases: receive evidence in the 1. Sec. In all cases falling within the original jurisdiction of the Court in division pursuant to Section 3 Rule 4 of Revised rules of Court of Tax Appeals and.

c) c. Sec.EVIDENCE MAY BE TAKEN BY A: 1. The determination of the issue of fact requires the determination of the long account (RRCTA. Sec 3). Rule 12.   Upon the completion of the hearing the Justice concerned shall submit to the Court a written report thereon stating the findings and conclusion (RRCTA. Court Official d) Clerk of Court e) Division of the Clerk of Court f) Their Assistants who are members of the Philippine Bar g) Court attorney (RRCTA.   2. 4). . Rule 12. The taking of the account is necessary. 3). The determination of a question of fact arises at any stage of the proceedings: or b) b. Rule 12. Sec. Justice of the CTA -It may be motu propio or upon proper motion when:   a) a.

p. PURPOSE: Making comparison with the original and identification by the witnesses of the received documentary evidences (RRCTA. 4). Rule 12. . p. Sec. 232). The Court official shall have no power to rule on objections (RRCTA. the CTA is described as the court of record. THE CTA shall not be governed by the Technical Rules of Evidence .A 1125.  It applies only in default or ex parte or where the parties agree in writing. It should not bar courts from considering undisputed facts to arrive at a just determination of controversy (DIMAAMPAO. As a court of Record. As cases filed before it are litigated de novo. 231). 4). Sec. Rule 12. Principles. Principles. the CTA is bound by the Rules on Documentary Evidence .The paramount consideration remains to be the ascertainment of Truth. party litigants should prove every minute aspects of their cases (DIMAAMPAO. Verily. the quest for orderly presentation of issues is not absolute.Under the Section 8 of R.

the validity of the assessment (Republic v. cannot be allowed to question. Tulio. R L- . Abella.R No. G. G.No Jurisdiction on Final and Executory or Undisputed Assessments It is the ordinary courts and not the Court of Tax Appeals can entertain money claims based on assessments that have became final and executory (CIR v. 2005). by way of defense. October 25. The taxpayer not having availed himself of the remedy (timely dispute of assessment) to permit the Tax Court to exercise the jurisdiction. 139858.

g. DOF Letter and RMC). jurisdiction to resolve tax disputes in general. this does not include cases where the constitutionality of a law.NO Jurisdiction to Rule on the Validity of a Rule or Regulation issued by Administrative Agency While the law confers on the CTA. BIR Ruling. or a rule or regulation issued by the administrative agency in the performance of its quasi-legislative function (e. August 20. Camacho. the regular courts have jurisdiction to pass upon the same (British American Tobacco v. GR 163583. . 2008).

. GR No. 2010). Rule 10. sec 1) . REASON: Life-Blood Theory (Angeles City v.EFFECT OF THE PERFECTION OF APPEAL GENERAL RULE: No appeal taken to the Court shall suspend the payment of taxes. 166134. distraint. June 29. Angeles Electric Corp. or sale of the property of the taxpayer for the satisfaction of tax Liability (RRCTA. levy.

Rule 10. The taxpayer may be required to deposit the amount claimed or file a surety bond for not double the amount with the Court (R. 3). 3. REQUISITES FOR SUSPENSION OF COLLECTION OF TAX 1. That the appeal is not frivolous or dilatory. A 1125. the collection may jeopardize the interest of the taxpayer or the Government (RRCTA. Sec. 4). Rule 10. Sec.When to file the motion to suspend the Collection of Tax: May be filed together with the petition for review or with the answer. 2. Sec 11) . There is an appeal to the CTA from a decision of a CIR. 4. . Rule 10. 5. In the opinion of the CTA. or in a separate motion filed by the interested party at any stage of the proceedings (RRCTA. The motion for the suspension of the collection of taxes shall be verified and shall state clearly and distinctly the facts and the ground relied upon in support of the motion (RRCTA. Section 2).

July 24. G. because this does not involve any tax assessments or refund (Ollada v. GR No. 1956) .INSTANCES WHERE CTA HAS NO JURISDICTION 1. involving the use of simplified book keeping records. Over the decisions of the Philippine Ports Authority (Philippine Ports Authority v. April 16.R No. . L-8878. Over questions of unfair competition. 2. 1991). Fuentes. CTA. 91259.

APPEALS TO THE DECISION OF CTA .

• For the CTA to have jurisdiction. October 15. as amended.A EB No. of the required documents in support of his protest. C. Sec. Takasago Philippines Incorporated. 2012). 835. 11). the BIR Commissioner must have render his decision. Within 30 days after the receipt of the decision or ruling or after the expiration of the period fixed by law for action (R.A 1125. executory and . 2. there is nothing to review and jurisdiction would not be acquired (CIR v.T. the taxpayer may appeal to the CTA within 30 days from the lapse of the said 180 days period. WHEN: Period within which to file Appeal to CTA A. otherwise the assessment shall become final. If the Commissioner or his duly authorized representative fails to act on the taxpayer's protest within 180 days from the date of the submission by the taxpayer. otherwise. In Civil Cases (Appeal filed with teh CTA in Division) 1.I.

R. CIR. G. June 16. . 3 [a][2]. Sec. RCBC v. No 168498. In this case.• In case of disputed assessments. Rule 4. will not final and executory. the inaction of the CIR within the 180-day period shall be deemed denial for the purpose of of allowing the taxpayer to appeal to the court and does not necessarily constitute the formal decision of the former on the tax case. • If the taxpayer waits for the decision which turns out to be adverse to him. 2006). The taxpayer may instead opt to await the decision of the CIR of the disputed assessement even beyond the 180-day period. the FAN. only then must appeal to him the said adverse decision to the CTA within 30 days from the receipt thereof (RRCTA.

Inc. June 16. 2. 2006).R. No.R No. .G. Jurisdictional and Mandatory (CIR v. 17204-46. Runs from the date the taxpayer receive the appealable decision or thirty days after the lapse of the 180-day period (within which the BIR should act). 2009). CIR.Thirty day Prescriptive Period for Appeal with the CTA 1. • The two periods are mutually exclusive (RCBC v. G.June 16. First Express Pawnshop Company.. 168498.

• He may also deputized legal officers of the BIR (cases brought under the NIRC and other laws enforced by the BIR) or the legal officers of the BOC (cases brought under TCC or other laws enforced by BOC). the Solicitor general shall have direct control and supervision at all times over them (RRCTA. to appear in behalf of the officials of said agencies in their official capacity. Rule 9. . Provided. 10). Sec.Solicitor General as a Counsel for the people and Government Officials sued in their official capacities in all cases brought in the CTA in the exercise of its Appellate Jurisdiction.

Effects of the Failure of the Taxpayer to Appeal on time:

a. Renders the decision final, executory and demandable;
b. Assessments is considered correct and all that is necessary is for
the Commissioner to enforce the collection of tax by summary
remedies or judicial actions;
c. The taxpayer is barred in an action for the collection of tax by the
government for the reopening the question already decided;
d. In the proceeding for the collection of tax by judicial action, the
taxpayer's defenses are similar to those of the defendant in a case
for enforcement of judgement by judicial action and;
e. The assessment which has become final and executory cannot be
superseded anymore by a new assessment (CASASOLA, supra at
1261-1262).

3. Non-Extendible (Filipinas Investment G.R No. L-23501, May
16, 1967).
• After the 30-day period, an assessment may no longer be
disputed through a simple expedient of paying the protested tax
and by subsequently claiming it as a refund within the period of
two years from the date of payment (RRCTA, Rule 8, Sec. 3).
• REASON: He would be doing indirectly what he could not do
directly, that is, open an assessment that has become final.
B. IN CIVIL CASES (Appeal filed with the CTA En Banc)
1. within the 15 days period from receipt of the questioned decision
or ruling of the CTA in division on a motion for reconsideration or
new trial;
2. Within 30 days from receipt of a questioned decision or ruling of
the CBAA and RTC in the exercise of its appellate jurisdiction
(RRCTA, Rule 8, Sec 3 [b] and [c]).

C. In Criminal Cases (Appeal Filed with teh RTC or CTA En Banc)
1. In cases decided by the RTc in the exercise of its original
jurisdiction- by filing a notice of appeal within 15 days from the
receipt of a copy of the decision or final order appealed from.
2. In cases decided by the Divisionof teh CTA,- by filing a petition for
review within 15 days from the receipt of teh copy of the decision or
resolution appealed from.
3. In cases decided by an RTC in the exercise of its appellate
jurisdiction -by filing a petition for review within 15 days fom receipt of
a copy of the decision or final order appealed from (RRCTA, Rule 9,
Sec. 9).

II. Sec.R No. G. What: Subject to Appeal • Only a final decision is appealable to CTA in division (CIR v. . BPI. April 17. Rule 15. suspends the running of the period to appeal (RRCTA. 2007). 4). 134062.Motion for Reconsideration for New Trial Requests for motions for reconsideration. • A decision is appealable when it constitutes the final action taken by him or his authorized deputies with respect to the taxpayer's liability.

Preliminary Collection letters. then. Commissioner must state that his decision is final for the period of appeal to run. period for appeal begins to run. post-reportings notices and pre-assessment notices are ot appealable. 4.1. 3. The action taken by the Commissioner in response to the taxpayer's protest on the assessment would constitute an appealable decision. between the taxpayer and the Commissioner. because they are not the final decision of the Commissioner. . 2. and the latter states that the action is final. An exchange of communication.

148380. November 21. The filing of the Judicial action for collection may be treated by a taxpayer as a denial of the protest (CIR v. 2005). Ayala Securities Corp. 3. 1990). 2. GR No. May 21. and levy without further notice (Oceanic Wireless Network Inc. No. although ordinarily must be first administratively protested by the latter . 2010). GR. L-29485. December 9. Union Shipping. CIR. A formal Letter of demand with assessment issued by the BIR to teh taxpayer . 1980). v. L-66160. GR No. CIR.Instances where the decisions are Final: 1. but it appearing from the language and the tenor thereof that the same is the final decisionof the CIR on the matter (Allied Banking Corporation v. A demand letter for tax deficiency issued an signed by an authorized subordinate officer with the warning that failure to pay would result to the issuance of warrant or distraint. . GR No. 4. February 5. 175097. A letter of BIR Commissioner reiteraing previous demand to pay an assessment (CIR v.

citing Dy Pa c and Co. Tenor Of Finality Rule: Where several request for reconsideration where fi led to the Commisoner. 2002. June 19. 6. GR No L-66160. October 18. CTA. 8. CIR. GR No. 7. GR No L-31369.5. the appealable decision is that which affirms the asse ssment in terms which clearly indicate the finality of the action taken by the Co mmissioner (Reyes v. Commisioner did not rule on the taxpayer motion for reconsideration of the assessment. 6124. It was only when the taxpayers receive the summons on teh civil actions for the collection of deficiency income tax that the period to appeal co mmenced (CIR v. v. v. 110318. CA. August 28 1996). issuance of warrant and to levy or enforce collection of deficiency of assessments tantamount to outright deni al of the request for reconsideration which is appealable to the CTA (CASASO LA supra at 1258) . Preliminary Collection letter may serve as assessment noticee (Columbia P ictures Inc.T. 1977). 1990). May 21.A Case No. When thee is a request for reconsideration . union Shipping Corp. Inc. C.

.Instances Where CTA would have Jurisdiction Even if there is no Decision 1. If the Commissioner of the Internal Revenue has not acted in a refund case and the two-year prescriptive period is about to expire. • REASON: If the taxpayer waits. 3. Where the CIR has not acted upon a protested assessment within one hundred eighty days from submission of all relevant document supporting the protest. 2. the his right of action prescribes. • REASON: To be fair with the tax payer so as not to deprive him of his day in Court. If the Commissioner of Customs has not rendered a decision on the application for refund of Internal Revenue Taxes and the suit is about to prescribe.

Appril 15. a question not raised at the administrative forum (CIR v Wander PhilippinesInc. CTA Case No. • REASON: The Court which is supposed to review would not review but determine and decide for the first time. 136308. G. L68375. G. Collector. R. 2001).. No. it was held by the Supreme Court that the BIR should not be allowed to defeat an otherwise valid claim for refund by raising the question of incapacity for the First Time. the Government can never be in estoppel for tax purposes. . 1119. 1964). The Government Cannot raise the Issue of Incapacity for the First time of Appeal • While it is automati. January 23.New Issues cannot be raised for the First Time on Appeal • GENERAL RULE: New issues cannot be raised for the first time on appeal ( Del Rosario v. September 30. • EXCEPTION: Defense of Prescription • REASON:This is a statutory right (Visayan Land Transportation v. 1988).R No. Bonga.

1991. the Government must follow the same Rules of Procedures which bind private parties (Commissioner v. PERSONS WHO CAN FILE AN APPEAL WITH THE CTA • The following people may Appeal to the CTA in Division (RRCTA. 1962). The Regional Trial Court • Stockholders or dissolved corporations could be held personally liable for the unpaid deficiency assessment of a dissolved corporation in proportion to their distributive shares in the dissolved corporation (Tan Tiong Bio v. 6. Procter and Gamble. Rule 4. G. CIR. 2. L-15778. the Commissioner of Customs. . III. G.• In the absence of explicit statutory provisions to the contrary. The Secretary of Agriculture. The Secretary of Trade and Industry. Resolution).R No L-66838. 5. April 23. The Commissioner of Finance. Sec. The Comissioner of Internal Revenue. 3. December 2. 3): 1. 4.R No.

A 1125is impliedly denied to the Government or any of its agencies. 1957). 1961). R. The CTA in Division in the Motion for Reconsideration for New Trial. The CBAA. Dy Cha. The following may appear to the CTA En banc (RRCTA Rule 4. April 15. where the taxpayer neither pays the tax assessed against him nor contests its validity before the CTA. No. GR No. is to enforce the collection by judicial action in the Ordinary Courts of justice or the CTA as the case may be (Rebublc v. CTA. L-15705.B. the only remedy left to the government aside from distraint or levy. Sec 2): Any party adversely affected by decision or ruling of: 1. 2. October 31. The RTC in the exercise of its appellate Jurisdiction • The Right to Appeal under Sec 11 of R. L-8811. • When a situation arises. . instrumentalities or official (Acting Collector of Customs v. G. 3.

b. c. Rule 42. In Civil Cases 1. Commissioner of Customs. en banc under a procedure analogous to that provided for the Ruke 43 of the Rules of Court for decisions or rulings of: . By filing a petition for review to the CTA Division under a procedure analogous to that provided for under Rule 42 of the Rules of Court.IV. rulings and inaction of the: a. Certification of the Non-Forum shopping (Rules of Court. Sec 4[a])  REQUIREMENTS a. How: Modes of Appeal A. By filing a petition for Review in CTA. Deposit of filing fees. d. c. Secretary of Finance. b. Secretary of Trade and Industry. Commissioner of the Internal Revenue. Filing a verified petition for review under the CTA in 7 legible copies. Rule 8. Section 1 and 2) 2. The RTC (RRCT. for decisions. e. Proof of Service to the adverse party d.

Certification of a non-forum shopping. NOTE: The Court on Division shall act on Appeal.by filing a petition for Review under Rule 43 of the court en banc. Rule 122. • REQUIREMENTS a. or c. Rule 8. Rule 43. c. The CTA in division or in a motion for reconsideration or new trial. In Criminal cases 1. . Sec. b. 5 and 6). B. In case decided by a Division of a CTA. 4[b]). b.. Sec. Proof of service thereof to the adverse party or to the court or agency a quo. and d.a. The CBAA. 2. In cases decided by the RTC in the exercise of its original jurisdiction-by filing a notice of appeal under section 3[a] and 6. Filing a motion for reconsideration or new trial when proper (RULES OF COURT. The RTC in the exercise of its Appellate Jurisdiction (RRCTA. with the court that rendered the final judgement or ordered appealed from and by serving a copy upon the adverse party. Filing of verified petition for review in 7 legible copies with the CTA.

3. Rle 9. The burden of proof is on the taxpayers contesting the validity of correctness of the assessments to prove not only that the one who rendered the assailed decision is wrong but the taxpayer is right. 3. 6238. October 8. Sec. 2004). In cases decided by the RTC in the exercise of its appellate jurisdictionby filing a petition for review under Rule 43 to the Court en banc (RRCTA. Proving that the assessment is wrong is not enough (H. Burden of Taxpayers Appeal to the CTA It is the burden of the taxpayer to appeal on CTA to prove by a whole disclosure of data in his possession that: 1. . Tambunting Pawnshop. 2. CTA Case No. 81446. The tax assessment is purely a presumption and not based on actual facts. August 18. GR No. The tax assessment is wrong. v. CTA. The correct computation of liability if any (Sy Po v. 9). 1988. CIR. Inc.

R No. . 181371. G.REASON: 1. Petitioner cannot be allowed to circumvent the denial of the request fo tax credit by abandoning its appeal and filing a new claim (Central Luzon Drug Corp. it may no longer be included in the taxpayer's future claims. v. The roots of controversy must be cut (Sy Po v. 1988). CA . GR L81446. petitioner is deemed to have accepted the decision of the CTA. March 2. CIR. The tax court could settle nothing. August 18. 2011). and 2. Withdrawal of an appeal renders the assailed decision final and executory By withdrawing the appeal. And the CTA had already denied taxpayer's request for the issuance of tax credit certificate for insufficiency of evidence. The way i open for subsequent assessment and appeals.

Section 112 D of the NIRC. the phrase within two years apply for the issuance of the tax credit certificate of refund in Sec 112 [A] refers to applications for refund filed by the CIR and not to appeals made to the CTA. In CIR v. The second paragraph of 112 D of the NIRC envisions two scenarios: . which states that the CIR has 120 days from the submission of complete documents in support of the application filed in accordance with subsection A and B within which to decide on the claim.The 2-year prescriptive period provided in Section 112 [A] of the NIRC is applicable only in the administrative claimsfor VAT Refund and not to Judicial Actions to CTA A claimant for the VAt input/credit should wait for the decision of the CIR r teh lapse of the 120-day period under Secton 112 [C] of NIRC before filing an appeal with the CTA. October 6 2010). (G. which already provides for a specified period which the taxpayer should appeal the decision or the inaction of the CIR. Aichi Forging Company of Asia Inc. In fact applying the two-year period to judicial claims would render nugatory . This is apparent to the first paragraph of Section D of the same provision.R No 184823.

13. bank accounts. Juan. the taxpayer has 30 which to file an appeal with the CTA. GR No L-24740. debts credits. Personal Property and Levy of Real Property If Decision is Favorable ernment (RA 9282. bank suance of any ruling. credits. In both instances. As we set it then. erest in the rights to personal property. chattels. 1979). July 30. order or decision by the CTA. and . or effects and the personal ncluding stocks and other securities. debts. Sec. the 120-day period is ng an appeal with the CTA and premature filing of claim for refund/credit of fore the CTA warrants a dismissal inasmuch as no jurisdiction is acquired by ry Order of CTA Not Appealable tion denying a taxpayers motion to declare a warrant or destraint and levy e by the Commissioner of Internal Revenue as illegal and interlocutory and not epublic v. the CTA shall issue an order authorizing the BIR through ssioner: and distraint any goods. decision is made after 120-day period. favorable to teh vernment .decision is issued by the CIR before the lapse of 120-day period.

January 20 2014).• This remedy is not exclusive and does not preclude the Court from availing other means under the Rules of Court. 183880. Factual findings by the CTA can only be disturbes on appeal if they are supplied by substantial evidence or if there is showing of gross error or abuse on the part of CTA. has accordingly developed an expertise to the subject. In the absence of any clear and convincing proof to the contrary. . unless there has been an abuse or improvident exercise of authority. the Court will presume that the CTA has rendered a decision which is valid in every respect (Commissioner of Internal Revenue v. Power Inc. Findings of Fact of the CTA not reviewable The Court will not lightly set aside the conclusions reached by the CTA which. GR No. Toledo. the very nature of its very function of being dedicated exclusively to the reslution of the tax problems.

PROCEDURE AFTER THE DECISION OF CTA IN DIVISION .

Provided. 11). the general rule applicable in general courts on matters of prosecution and appeal shall likewise apply (RA 1125. as amended. order or decision of the CTA in division. 2. .file a petition for review with the CTA en banc. A ruling. The decision or ruling of teh CTA en banc . The resolution of the DIvision of the CTA on the motion for reconsideration or new trial. 3. Sec.file with the Supreme Court a verified petition for review on certiorari within 15 days from receipt of the decision or ruling pursuant to Rule 45 of the Rules of Court.Rules of Procedure • Pursuant to RA 9282. the decision of teh CTA in division is no longer appealable to the Court of Appeals but to CTA en banc. however that in criminal cases.file a motion for reconsideration for new trial before the same division within the 15 days from notice thereof. REMEDIES OF THE PARTY AFFECTED 1.

especially when the failure to present evidence were adequately explained (Philippine Phosphate Fertilizer Corp.Effect o Appeal Filed with the Supreme Court The pending motion for reconsideration or for a new trial in the Court en banc shall be deemed abandoned (RRCTA. Sec. if presented. Rule 15. accident. June 28. 5). .  Where there is a clear showing of entitlement refund. mistake or excusable negligence (FAME) which ordinarily prudence could not have guarded against and by reason of which such aggrieved party has been probably impaired in his rights. v. 2005). have discovered and produced at the trial and which . Newly discovered evidence which he could not. 2) Grounds of Motion for New Trial 1. Sec. Rule 16. or 2. CIR. GR No. would probably alter the result (RRCTA. the technical rules may be waived so as to allow new trial even if the requistes or ground are not met. with reasonable diligence. Fraud. 141973.

Section 1 of the RRCTA requires that the petition for review of a decision of the Court in Division must be preceeded by the filing of a timely motion for reconsideration or new trial with the Division. 7. Sales. Sec. final resolution or order (RRCTA. which has become final GENERAL RULE: Once a decision becomes final and executory. November 22. not merely directory. Sec. 2010). The word “must” clearly indicates the mandatory. 183868. . No Second motion for reconsideration or New Trial No party shall be allowed to file a second motion for reconsideration or new trial of a decision. Modification of CTA Decision. Rule 52. and Rules of Court.Motion for Reconsideration A Requisite for Petition for Review of the decision of the CTA Division Rule 8. nature of a requirement (Commisioner of Customs v. Rule 15. GR No. it cannot be altered and modified. 2).

In some cases. said judgement may be modified. Unimex Micro Electronics GmBH.EXCEPTIONS 1. where facts or events transpire after a decision has become executory. March 9. 166309-10. GR No. 2007). 2.A final judgement may be altered when its execution becomes impossible or unjust (Republic v. . which facts constitute a supervening cause rendering the final judgement unenforceable.