THE COURT OF TAX APPEALSBy 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 . . R.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. 1954. • R. • R.A 9503 which was enacted on June 12. 2008 further amended R.A 1125.A 9282 was enacted in March 30.A 1125. 2004. 2004 and took effect on April 23.A 9282 amended R. . • Appeals from its decision en banc shall now made before the Supreme Court (Sec.AMENDMENTS BY R. 19). 1). • 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. Increasing the number of division from 2 to three each division constituting of three justices (Section 1). .AMENDMENTS OF R.A 9503 • R.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. 2. Section 1). 4. A 1125 as amended. Section 10). . 3. To suspend the collection of tax pending appeal (RRCTA. Rule 10. To require the production of papers or documents or subpoena duces tecum (R. To summon witness by subpoena (R. 5.A 1125 as amended.A 1125 amended Sec. Sec.POWERS OF CTA 1. To punish contempt (R. To issue order authorizing distraint of personal property or to levy of real property. 10). 10). To render decisions on cases brought . To promulgate Rules and Regylation for the conduct of its business (R. 9. Sec. as amended Sec 10).6.A 1125. as amended. 16). Rule 12. 7. Sec. 2). 10. A 1125. To assess damages against appellant if appeals to the CTA appears to be frivolous or dilatory (R. Sec. A 1125. 8). as amended. To receive Evidence (RRCTA. To administer Oaths (R. 8. .Power to issue writs of prohibition and injunctions is supplementary to its appellate jurisdiction. Consist of Presiding Justice and 8 Associate Justices appointed by the President upon the nomination of the Judicial and Bar Council. each division consists of three justices. The Presiding Judge and the two Senior Associate Justices shall serve as the Chairpersons of the . 2.COMPOSITION AND APPOINTMENT OF MEMBERS 1. 3. It may sit en banc or in three divisions. Sec. Sec. But only a simple majority of the justices present is needed to promulgate a resolution or decision in all other cases (R. due to any vacancy. En Banc: To reverse the decision of the Divisions. disqualification. . 2). disability or any other lawful causes. inhibition. 2). the Presiding justice shall choose a justice to sit in the vacant position temporarily (R. Division: When the required quorum cannot be constituted.A 9503.A 9503. the presence at the deliberation and affirmative vote of five members is necessary. Jurisdiction of the Court of Tax Appeals (RA 9282) . 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 . 1968). Villa. And for the lack of it. The jurisdiction of the CTA over the subject matter can be challenged at any stage of the proceedings. L-23988. G. The CTA can dismiss a case ex mero motu (on its own free will) (CIR v. The CTA has jurisdiction over both civil and criminal aspects of a tax case.R No. . DA. EXCLUSIVE APPELATE JURISDICTION (RRCTA. 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. DOF. Exclusive Original Jurisdiction (RRCTA. Sec. where the principal amount of taxes and penalties claimed is less than 1 million. Sec. 2) The Court shall sit en banc in the exercise of its administrative. Tax collection cases decided by the RTCs in the exercise of their original jurisdiction involving final and executor assessments for taxes. BOC. 2) A. and 3. II. fees charges and penalties. ceremonial and adjudicative functions. Rule 4.CT EN BANC I.BIR. Local Tax Cases decided by the RTCs in the exercise of their original jurisdiction. Cases arising from the administrative agencies. DTI. Rule 2. 2. Criminal offenses arising from violations of the NIRC or TCC and other laws administered by the BIR or BOC . Tax Collection cases where the principal amount of taxes and fees. Resolutions. Decisions. 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. 2.B. C. Decisions. exclusive of charges and penalties claimed is 1 million pesos or more and. or Orders of Motions for Reconsideration or New Trial of the Court in Division in the Exercise of its Exclusive Original Jurisdiction over: 1. NOTE: Real Property tax cases decided by the RTc are not under the CTAs jurisdiction. 1. Tax Collection Cases where the principal amount of taxes and fees. Under Sec. Decisions. and 3. Decisions. 7 [a][5] of RA .D. exclusive of charges and penalties claimed is less than 1 million. The jurisdiction of the CTA involves only those real property tax cases originally decided by the CBAA in the exercise of its appellate jurisdiction. orders and resolutions of the RTC in local tax cases do not include real property tax which is ad valorem tax. 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. 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. exclusive of charges and penalties claimed is less than 1 million . 2. 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 .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). or .E. The principal amount of taxes and fees exclusive of charges and penalties claimed is less than 1 million. rule 4. Exclusive Original Jurisdiction A. CTA DIVISION I. sec 7 [b] [1]): a. 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. . Sec 7 [b][1] as amended).A 1125.NOTE: As to which court shall exercise jurisdiction. the rules on jurisdiction in criminal cases shall be followed. 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. 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. Tax Collection Cases Those involving final and executory assessments for taxes. or RTC. 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. Sec.A 1125. where the principal amount of taxes and fees. Sec 3. charges and penalties. [c][1]). exclusive of charges and penalties claimed is 1 million pesos or more (RRCTA. fees. The jurisdiction of the CTA in thsese cases shall be appellate (R. Rule 4.B. depending on their respective jurisdiction. 7 [b][1]) . MeTC. penalties in relation thereto. Exclusive Apellate Jurisdiction (RRCTA. 6 /1 2 3/ .II. 3 [c][2]) A. S ecs 3[a]. 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. In cases involving disputed assessments. re funds or Internal revenue taxes. Other matters arising under the NIRC or ot her laws administered by the BIR. 3 [b][2]. or 2. fees or other charges. Rule 4. Inc.R No. November 17. It covers other cases that arise out of the NIRC or related laws administered by the BIR.• The term “other matters” is limited only by the qu alifying phrase that follows it. 2010). Thus. Hambrecht & Quist Philippines. G. 1692 25. 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. In connection therewith. 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.. 6 /1 2 3/ . • 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. from the foregoing. forfeitures or other penalties in relation thereto. fees or other money charges. or 2. B. seizures. fines. Other matters arising under the Customs Law or other Laws administered by the BOC. 6 /1 2 3/ . In cases involving liabilities for Customs duties. Decisions of the Commissioner of Customs (via petition for review under Rule 42 of the Rules of Court) 1. detention or release of there property affected.NOTE: The Inaction of the CIR within the 180day period under Section 228 of the NIRC is deemed denial. 6 /1 2 3/ . Without such automatic review. REASON FOR THE PURPOSE OF AUTOMATIC REVIEW: To protect the Government against corrupt and conniving customs collector. Commissioner of Customs. December 22. 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. 1989). 84111. a collector would have that absolute and unbridled discretion to determine whether the goods seized are dutiable or not. 2315 of the Tariff and Customs Code (via a petition for review under Rule 42). no appeal can be taken in favor of the Government thus.C.R No. making the decision final and the government deprived of any protection (Yaokasin v. G. In situation where the collectors decision is favorable to the tax payer. where either parties may appeal the decisions to impose or not to impose said duties (via petition for Review under Rule 42). exclusive of charges and penalties. where the principal amount of taxs and fees. and safeguard measures under R. commodity or article. and the Secretary of Agriculture in the case of agricultural product. 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. involving dumping and countervailling duties under Article 301 and 302. 6 /1 2 3/ .A 8800 (Safeguard Measures Act). Appeals from the Judgement. claimed is less than 1 million or whether there is no specified amount claimed.D. E. respectively of the Tariff and Customs Code. Decision of the Secretary of Trade and Industry in the case of the non-agricultural product commodity or article. 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. as amended. G. exclusive of charges and penalties. Decisions. Resolutions. 6 /1 2 3/ .F.A 1125. Appeals from the Judgements. Sec 7 [b][2][b]) and. H. or Orders of the RTC in the Tax Collection Cases where the principal amount of taxes and fees. Resolutions or Orders of the RTC in Local Taxes Cases decided or resolved by them in the exercise of their Original Jurisdiction. claimed is less than P1million. Criminal Offenses over Petitions for Review of the Judgements. 2. Rule 12. 2).EVIDENCES FOR CTA Taking of Evidences The Court may following cases: receive evidence in the 1. . 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. 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. Sec. Rule 12. Sec 3). 4). Rule 12. Sec. 3).EVIDENCE MAY BE TAKEN BY A: 1. Sec. The determination of the issue of fact requires the determination of the long account (RRCTA. Rule 12. The taking of the account is necessary. 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. c) c. 2. The determination of a question of fact arises at any stage of the proceedings: or b) b. Justice of the CTA -It may be motu propio or upon proper motion when: a) a. 231). p.Under the Section 8 of R. p. Rule 12. The Court official shall have no power to rule on objections (RRCTA. Rule 12. Sec. 4). As a court of Record. party litigants should prove every minute aspects of their cases (DIMAAMPAO. It should not bar courts from considering undisputed facts to arrive at a just determination of controversy (DIMAAMPAO. As cases filed before it are litigated de novo.A 1125. 4). the CTA is described as the court of record. It applies only in default or ex parte or where the parties agree in writing. Sec.The paramount consideration remains to be the ascertainment of Truth. 232). Principles. the quest for orderly presentation of issues is not absolute. Verily. . PURPOSE: Making comparison with the original and identification by the witnesses of the received documentary evidences (RRCTA. the CTA is bound by the Rules on Documentary Evidence . THE CTA shall not be governed by the Technical Rules of Evidence . Principles. 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. Tulio. by way of defense. October 25. G. cannot be allowed to question. The taxpayer not having availed himself of the remedy (timely dispute of assessment) to permit the Tax Court to exercise the jurisdiction. Abella. R L- . the validity of the assessment (Republic v. 2005).R No. 139858. August 20. 2008). jurisdiction to resolve tax disputes in general. .NO Jurisdiction to Rule on the Validity of a Rule or Regulation issued by Administrative Agency While the law confers on the CTA.g. DOF Letter and RMC). BIR Ruling. or a rule or regulation issued by the administrative agency in the performance of its quasi-legislative function (e. this does not include cases where the constitutionality of a law. GR 163583. the regular courts have jurisdiction to pass upon the same (British American Tobacco v. Camacho. Angeles Electric Corp. 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. Rule 10. 2010). GR No. or sale of the property of the taxpayer for the satisfaction of tax Liability (RRCTA. levy. sec 1) . 166134. June 29. . distraint. 3. 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. Rule 10. In the opinion of the CTA. Rule 10. . That the appeal is not frivolous or dilatory. the collection may jeopardize the interest of the taxpayer or the Government (RRCTA. 4). REQUISITES FOR SUSPENSION OF COLLECTION OF TAX 1. 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. 5. There is an appeal to the CTA from a decision of a CIR. 2. Sec. Rule 10. 4. 3). Sec 11) . A 1125. or in a separate motion filed by the interested party at any stage of the proceedings (RRCTA. Section 2). The taxpayer may be required to deposit the amount claimed or file a surety bond for not double the amount with the Court (R. 1991).INSTANCES WHERE CTA HAS NO JURISDICTION 1. L-8878. involving the use of simplified book keeping records.R No. 91259. 2. 1956) . July 24. GR No. because this does not involve any tax assessments or refund (Ollada v. . April 16. CTA. Fuentes. Over the decisions of the Philippine Ports Authority (Philippine Ports Authority v. Over questions of unfair competition. G. APPEALS TO THE DECISION OF CTA . In Civil Cases (Appeal filed with teh CTA in Division) 1. WHEN: Period within which to file Appeal to CTA A. executory and . 11). October 15. the BIR Commissioner must have render his decision. C. otherwise the assessment shall become final.A EB No.A 1125. of the required documents in support of his protest. otherwise. 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. Sec. 2. Takasago Philippines Incorporated. Within 30 days after the receipt of the decision or ruling or after the expiration of the period fixed by law for action (R.I.T. 2012). as amended. • For the CTA to have jurisdiction. 835. there is nothing to review and jurisdiction would not be acquired (CIR v. the taxpayer may appeal to the CTA within 30 days from the lapse of the said 180 days period. CIR. Sec. R. G.• In case of disputed assessments. 2006). June 16. 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. In this case. • If the taxpayer waits for the decision which turns out to be adverse to him. only then must appeal to him the said adverse decision to the CTA within 30 days from the receipt thereof (RRCTA. The taxpayer may instead opt to await the decision of the CIR of the disputed assessement even beyond the 180-day period. will not final and executory. the FAN. . 3 [a][2]. No 168498. RCBC v. Rule 4. 2009).June 16. First Express Pawnshop Company. CIR.Thirty day Prescriptive Period for Appeal with the CTA 1.. June 16.R.R No. Jurisdictional and Mandatory (CIR v. Inc. 2006). 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). • The two periods are mutually exclusive (RCBC v. 168498. .G. 2. No. 17204-46. G. Rule 9. Provided. 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. • 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. 10). . 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). Sec. Rule 15. • A decision is appealable when it constitutes the final action taken by him or his authorized deputies with respect to the taxpayer's liability. 2007). G. . BPI. What: Subject to Appeal • Only a final decision is appealable to CTA in division (CIR v. 134062. II. 4).Motion for Reconsideration for New Trial Requests for motions for reconsideration.R No. suspends the running of the period to appeal (RRCTA. April 17. 3. between the taxpayer and the Commissioner. period for appeal begins to run. Preliminary Collection letters. Commissioner must state that his decision is final for the period of appeal to run. . because they are not the final decision of the Commissioner. then. 4.1. 2. The action taken by the Commissioner in response to the taxpayer's protest on the assessment would constitute an appealable decision. An exchange of communication. post-reportings notices and pre-assessment notices are ot appealable. and the latter states that the action is final. A formal Letter of demand with assessment issued by the BIR to teh taxpayer . The filing of the Judicial action for collection may be treated by a taxpayer as a denial of the protest (CIR v. November 21. CIR. GR. 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. 2010). GR No. 175097. 3. December 9.Instances where the decisions are Final: 1. CIR. 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. and levy without further notice (Oceanic Wireless Network Inc. 1980). GR No. 2. 148380. May 21. 1990). Union Shipping. L-29485. A letter of BIR Commissioner reiteraing previous demand to pay an assessment (CIR v. No. L-66160. 2005). 4. although ordinarily must be first administratively protested by the latter . . GR No. v. February 5. Ayala Securities Corp. 8. v. Tenor Of Finality Rule: Where several request for reconsideration where fi led to the Commisoner. May 21. GR No L-66160. October 18. 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) . 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. C. 6. August 28 1996). v. 7. union Shipping Corp. 110318. CA. 1977). Preliminary Collection letter may serve as assessment noticee (Columbia P ictures Inc.T. 2002. 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. Inc. When thee is a request for reconsideration . CIR. June 19. citing Dy Pa c and Co. 6124.A Case No. 1990). GR No L-31369. CTA.5. GR No. 2. . • REASON: If the taxpayer waits.Instances Where CTA would have Jurisdiction Even if there is no Decision 1. 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. • REASON: To be fair with the tax payer so as not to deprive him of his day in Court. If the Commissioner of the Internal Revenue has not acted in a refund case and the two-year prescriptive period is about to expire. 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. the his right of action prescribes. 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. Collector. the Government can never be in estoppel for tax purposes. G. Appril 15.. L68375.R No.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. CTA Case No. The Government Cannot raise the Issue of Incapacity for the First time of Appeal • While it is automati. G. 136308. a question not raised at the administrative forum (CIR v Wander PhilippinesInc. R. January 23. 1964). . • REASON: The Court which is supposed to review would not review but determine and decide for the first time. September 30. Bonga. 2001). • EXCEPTION: Defense of Prescription • REASON:This is a statutory right (Visayan Land Transportation v. 1119. No. 1988). 2. The Secretary of Trade and Industry. 5. L-15778. The Commissioner of Finance. CIR. G. April 23. The Comissioner of Internal Revenue. 3. The Secretary of Agriculture. 1962). 6. Procter and Gamble. 1991.• In the absence of explicit statutory provisions to the contrary. the Commissioner of Customs. G. the Government must follow the same Rules of Procedures which bind private parties (Commissioner v. 3): 1. Resolution). Sec.R No. . 4. 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.R No L-66838. III. Rule 4. December 2. PERSONS WHO CAN FILE AN APPEAL WITH THE CTA • The following people may Appeal to the CTA in Division (RRCTA. is to enforce the collection by judicial action in the Ordinary Courts of justice or the CTA as the case may be (Rebublc v. • When a situation arises. R. Sec 2): Any party adversely affected by decision or ruling of: 1. where the taxpayer neither pays the tax assessed against him nor contests its validity before the CTA. . April 15.A 1125is impliedly denied to the Government or any of its agencies. CTA. 1961). the only remedy left to the government aside from distraint or levy. G. No. GR No.B. October 31. The CBAA. The RTC in the exercise of its appellate Jurisdiction • The Right to Appeal under Sec 11 of R. Dy Cha. 2. L-15705. 1957). 3. The CTA in Division in the Motion for Reconsideration for New Trial. L-8811. The following may appear to the CTA En banc (RRCTA Rule 4. instrumentalities or official (Acting Collector of Customs v. How: Modes of Appeal A. Proof of Service to the adverse party d. Secretary of Finance.IV. b. Commissioner of Customs. The RTC (RRCT. b. c. c. for decisions. Rule 8. By filing a petition for Review in CTA. d. Rule 42. Filing a verified petition for review under the CTA in 7 legible copies. Sec 4[a]) REQUIREMENTS a. rulings and inaction of the: a. e. Secretary of Trade and Industry. Certification of the Non-Forum shopping (Rules of Court. Deposit of filing fees. 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. Section 1 and 2) 2. Commissioner of the Internal Revenue. In Civil Cases 1. en banc under a procedure analogous to that provided for the Ruke 43 of the Rules of Court for decisions or rulings of: . 5 and 6). The RTC in the exercise of its Appellate Jurisdiction (RRCTA.by filing a petition for Review under Rule 43 of the court en banc. Rule 122. and d. 4[b]).. Filing a motion for reconsideration or new trial when proper (RULES OF COURT. In case decided by a Division of a CTA. The CTA in division or in a motion for reconsideration or new trial. c. 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. Rule 8. with the court that rendered the final judgement or ordered appealed from and by serving a copy upon the adverse party. Sec. Rule 43. 2. In Criminal cases 1. or c. b. Certification of a non-forum shopping. B. Sec. b.a. The CBAA. Filing of verified petition for review in 7 legible copies with the CTA. NOTE: The Court on Division shall act on Appeal. . • REQUIREMENTS a. Proof of service thereof to the adverse party or to the court or agency a quo. 2004). October 8. CTA Case No. Sec. 81446. CIR. CTA. . v. Rle 9. GR No.3. Inc. 1988. August 18. 6238. 2. 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. The tax assessment is wrong. 9). Tambunting Pawnshop. 3. 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. 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. Proving that the assessment is wrong is not enough (H. The correct computation of liability if any (Sy Po v. The tax assessment is purely a presumption and not based on actual facts. CIR. 2011). And the CTA had already denied taxpayer's request for the issuance of tax credit certificate for insufficiency of evidence. August 18. 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.REASON: 1. 1988). CA . GR L81446. The tax court could settle nothing. petitioner is deemed to have accepted the decision of the CTA. March 2. The way i open for subsequent assessment and appeals. . and 2. v. 181371. G.R No. The roots of controversy must be cut (Sy Po v. it may no longer be included in the taxpayer's future claims. Withdrawal of an appeal renders the assailed decision final and executory By withdrawing the appeal. 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. Section 112 D of the NIRC. Aichi Forging Company of Asia Inc. The second paragraph of 112 D of the NIRC envisions two scenarios: . October 6 2010). In CIR v. In fact applying the two-year period to judicial claims would render nugatory . (G.R No 184823. 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 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. This is apparent to the first paragraph of Section D of the same provision. which already provides for a specified period which the taxpayer should appeal the decision or the inaction of the CIR. 1979). As we set it then. debts. July 30. debts credits. credits. the taxpayer has 30 which to file an appeal with the CTA. order or decision by the CTA. Juan. decision is made after 120-day period. and . favorable to teh vernment . chattels. erest in the rights to personal property. GR No L-24740.decision is issued by the CIR before the lapse of 120-day period. the CTA shall issue an order authorizing the BIR through ssioner: and distraint any goods. Sec. bank accounts. or effects and the personal ncluding stocks and other securities. bank suance of any ruling. 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. Personal Property and Levy of Real Property If Decision is Favorable ernment (RA 9282. 13. In both instances. unless there has been an abuse or improvident exercise of authority. 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. January 20 2014). In the absence of any clear and convincing proof to the contrary. . Power Inc.• This remedy is not exclusive and does not preclude the Court from availing other means under the Rules of Court. Findings of Fact of the CTA not reviewable The Court will not lightly set aside the conclusions reached by the CTA which. the very nature of its very function of being dedicated exclusively to the reslution of the tax problems. 183880. the Court will presume that the CTA has rendered a decision which is valid in every respect (Commissioner of Internal Revenue v. Toledo. GR No. PROCEDURE AFTER THE DECISION OF CTA IN DIVISION . 2. REMEDIES OF THE PARTY AFFECTED 1. 3. however that in criminal cases. Sec. . A ruling. as amended. the general rule applicable in general courts on matters of prosecution and appeal shall likewise apply (RA 1125. The resolution of the DIvision of the CTA on the motion for reconsideration or new trial. the decision of teh CTA in division is no longer appealable to the Court of Appeals but to CTA en banc.file a motion for reconsideration for new trial before the same division within the 15 days from notice thereof. Provided. order or decision of the CTA in division.file a petition for review with the CTA en banc.Rules of Procedure • Pursuant to RA 9282. The decision or ruling of teh CTA en banc . 11).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. accident. Fraud. Rule 15. would probably alter the result (RRCTA. Sec. have discovered and produced at the trial and which . . 5). 141973. Rule 16. Newly discovered evidence which he could not.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. 2) Grounds of Motion for New Trial 1. v. especially when the failure to present evidence were adequately explained (Philippine Phosphate Fertilizer Corp. if presented. 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. or 2. the technical rules may be waived so as to allow new trial even if the requistes or ground are not met. with reasonable diligence. CIR. 2005). GR No. June 28. Where there is a clear showing of entitlement refund. final resolution or order (RRCTA. Sec. nature of a requirement (Commisioner of Customs v. 7. 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. 2010). and Rules of Court. . 183868. Sec. Rule 15. Sales. GR No. The word “must” clearly indicates the mandatory. 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. not merely directory. 2).Motion for Reconsideration A Requisite for Petition for Review of the decision of the CTA Division Rule 8. November 22. it cannot be altered and modified. Rule 52. Modification of CTA Decision. which has become final GENERAL RULE: Once a decision becomes final and executory. where facts or events transpire after a decision has become executory. which facts constitute a supervening cause rendering the final judgement unenforceable.A final judgement may be altered when its execution becomes impossible or unjust (Republic v. 166309-10. 2007). said judgement may be modified. GR No. . In some cases. 2. Unimex Micro Electronics GmBH. March 9.EXCEPTIONS 1.