Vous êtes sur la page 1sur 14

COURT OF TAX APPEALS

Abuel, Angelica J. Bautista, Nadjla Tongol, Roby Renz

REPUBLIC ACT NO. 1125 AN ACT CREATING THE COURT OF TAX APPEALS
The Court of Tax Appeals (CTA) was created on June 16, 1954, through the enactment of Republic Act No. 1125 (R.A. 1125). Considering its limited jurisdiction then, it had only three (3) Judges, which at present is equivalent to one (1) Division. Court; Judges; qualifications; salary; tenure. - There is hereby created a Court of Tax Appeals which shall consist of a Presiding Judge and two Associate Judges, each of whom shall be appointed by the President, with the consent of the Commission on Appointments. The Presiding Judge shall be so designated in the commission issued to him by the President, and the Associate Judges shall have precedence according to the date of their commissions. The Presiding Judge shall receive a compensation of thirteen thousand pesos per annum and shall have the same qualifications, rank, category and privileges as the Presiding Judge of the Court of Industrial Relations. The Associate Judges shall each receive a compensation of twelve thousand pesos per annum and shall have the same qualifications, rank, category and privileges as a member of the Court of Industrial Relations. The Presiding Judge and the Associate Judges shall be appointed to hold office during good behavior, until they reach the age of seventy, or become incapacitated to discharge the duties of their office, unless sooner removed for the same causes and in the same manner provided by law for members of the judiciary of appellate rank. Quorum; temporary vacancy. - Any two Judges of the Court of Tax Appeals shall constitute a quorum, and the concurrence of two judges shall be necessary to promulgate any decision thereof. In case of temporary vacancy, disability or disqualification, for any reason, of any of the judges of the said Court, the President may, upon the request of the Presiding Judge, designate any Judge of First Instance to act in his place; and such Judge of First Instance shall be duly qualified to act as such. Clerk of court; appointment; qualification; compensation. - The Court of Tax Appeals shall have the Clerk of Court who shall be appointed by the President with the consent of the Commission on Appointments. No person shall be appointed Clerk of Court unless he is duly authorized to practice law in the Philippines. The Clerk of Court shall exercise the same powers and perform the same duties in regard to all matters within the court's jurisdiction, as are exercise and performed by clerks of Court of First Instance, in so far of those powers and the performance of those duties the clerk shall be under the direction of the said court. The Clerk of Court shall receive a compensation of six thousand pesos per annum. Pursuant to the provisions of Republic Act No. 1125 and other laws prior to R.A. 9282, the Court of Tax Appeals retains exclusive appellate jurisdiction to review by appeal, the following: 1. Decisions of the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties imposed in relation thereto, or other matters arising under the National Internal Revenue Code or other law or part of law administered by the Bureau of Internal Revenue;

2. Decisions of the Commissioner of Customs in cases involving liability for customs duties, fees or other money charges; seizure, detention or release of property affected; fines, forfeitures or other penalties imposed in relation thereto; or other matters arising under the Customs Law or other law or part of law administered by the Bureau of Customs [Rep. Act. No. 1125, (1954), Sec. 7]; 3. In automatic review cases where such decisions of the Commission of Customs favorable to the taxpayer is elevated to the Secretary of Finance (Sec. 2315, TCC); and 4. Decisions of the Secretary of Trade and Industry, in the case of non-agricultural product, commodity or article, or the Secretary of Agriculture, in the case of agricultural product, commodity or article, in connection with the imposition of the Anti-Dumping Duty, Countervailing and Safeguard Duty [Republic Act Nos. 8751 and 8752, (1999) Sec. 301 (a) and (p), and Republic Act 8800].

REPUBLIC ACT NO. 9282 AN ACT EXPANDING THE JURISDICTION OF THE COURT OF TAX APPEALS (CTA), ELEVATING ITS RANK TO THE LEVEL OF A COLLEGIATE COURT WITH SPECIAL JURISDICTION AND ENLARGING ITS MEMBERSHIP, AMENDING FOR THE PURPOSE CERTAIN SECTIONS OR REPUBLIC ACT NO. 1125, AS AMENDED, OTHERWISE KNOWN AS THE LAW CREATING THE COURT OF TAX APPEALS, AND FOR OTHER PURPOSES
With the passage of Republic Act Number 9282 (R.A. 9282) on April 23, 2004, the CTA became an appellate Court, equal in rank to the Court of Appeals. Court; Justices; Qualifications; Salary; Tenure - There is hereby created a Court of Tax Appeals (CTA) which shall be of the same level as the Court of Appeals, possessing all the inherent powers of a Court of Justice, and shall consist of a Presiding Justice and five (5) Associate Justices. The incumbent Presiding Judge and Associate Judges shall continue in office and bear the new titles of Presiding Justice and Associate Justices. The Presiding Justice and the most Senior Associate Justice shall serve as chairmen of the two (2) Divisions. The additional three (3) Justices and succeeding members of the Court shall be appointed by the President upon nomination by the Judicial and Bar Council. The Presiding Justice shall be so designated in his appointment, and the Associate Justices shall have precedence according to the date of their respective appointments, or when the appointments of two (2) or more of them shall bear the same date, according to the order in which their appointments were issued by the President. They shall have the same qualifications, rank, category, salary, emoluments and other privileges, be subject to the same inhibitions and disqualifications, and enjoy the same retirements and other benefits as those provided for under existing laws for the Presiding Justice and Associate Justices of the Court of Appeals.

Whenever the salaries of the Presiding Justice and the Associate Justices of the Court of Appeals are increased, such increases in salaries shall be deemed correspondingly extended to and enjoyed by the Presiding Justice and Associate Justices of the CTA. The Presiding Justice and Associate Justices shall hold office during good behavior, until they reach the age of seventy (70), or become incapacitated to discharge the duties of their office, unless sooner removed for the same causes and in the same manner provided by law for members of the judiciary of equivalent rank. Sitting En Banc or Division; Quorum; Proceedings - The CTA may sit en banc or in two (2) Divisions, each Division consisting of three (3) Justices. Four (4) Justices shall constitute a quorum for sessions en banc and two (2) Justices for sessions of a Division: Provided, That when the required quorum cannot be constituted due to any vacancy, disqualification, inhibition, disability, or any other lawful cause, the Presiding Justice shall designate any Justice of other Divisions of the Court to sit temporarily therein. 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 necessary for the rendition of a decision or resolution. Clerk of Court; Division Clerks of Court; Appointment; Qualification; Compensation - The CTA shall have a Clerk of Court and three (3) Division Clerks of Court who shall be appointed by the Supreme Court. No person shall be appointed Clerk of Court or Division Clerk of Court unless he is duly authorized to practice law in the Philippines. The Clerk of Court and Division Clerks of Court shall exercise the same powers and perform the same duties in regard to all matters within the Court's jurisdiction, as are exercised and performed by the Clerk of Court and Division Clerks of Court of the Court of Appeals, in so far as the same may be applicable or analogous; and in the exercise of those powers and the performance of those duties they shall be under the direction of the Court. The Clerk of Court and the Division Clerks of Court shall have the same rank, privileges, salary, emoluments, retirement and other benefits as those provided for the Clerk of Court and Division Clerks of Court of the Court of Appeals, respectively Expanded Jurisdiction Under Republic Act Number 9282, the CTA's original appellate jurisdiction was expanded to include the following: 1. Criminal cases involving violations of the National Internal Revenue Code and the Tariff and Customs Code; 2. Decisions of the Regional Trial Courts (RTC) in local tax cases;

3. Decisions of the Central Board of Assessment Appeals (CBAA) in cases involving the assessment and taxation of real property; and 4. Collection of internal revenue taxes and customs duties the assessment of which have already become final.

REPUBLIC ACT NO. 9503 AN ACT ENLARGING THE ORGANIZATIONAL STRUCTURE OF THE COURT OF TAX APPEALS, AMENDING FOR THE PURPOSE CERTAIN SECTIONS OF THE LAW CREATING THE COURT OF TAX APPEALS, AND FOR OTHER PURPOSES
Republic Act Number 9503 was enacted on June 12, 2008 and took effect on July 5, 2008. This further enlarged the organizational structure of the CTA by creating a Third Division and providing for three (3) additional Justices. Court; Justices, Qualifications; Salary; Tenure - There is hereby created a Court of Tax Appeals (CTA) which shall be of the same level as the Court of Appeals, possessing all the inherent powers of a Court of Justice, and shall consist of a Presiding Justice and eight (8) Associate Justices. The incumbent Presiding Judge and Associate Judges shall continue in office and bear the new titles of Presiding Justice and Associate Justices. The Presiding Justices and the two (2) most Senior Associate Justices, all of whom are incumbent, shall serve as chairmen of the three (3) Divisions. The other three (3) incumbent Associate Justices and the three (3) additional Associate Justices shall serve as members of the Divisions. The additional three (3) Justices as provided herein and the succeeding members of the Court shall be appointed by the President upon nomination by the Judicial and Bar Council. The Presiding Justice shall be so designated in his appointment, and the Associate Justices shall have precedence according to the date of their respective appointment or when the appointments of two (2) or more of them shall bear the same date, according to the order in which their appointments were issued by the President. They shall have the same qualifications, rank, category, salary, emoluments and other privileges, be subject to the same inhibitions and disqualifications, and enjoy the same retirement and other benefits as those provided for under existing laws for the Presiding Justice and Associate Justices of the Court of Appeals. Whenever the salaries of the Presiding Justice and the Associate Justices of the Court of Appeals are increased, such increases in salaries shall be deemed correspondingly extended to and enjoyed by the Presiding Justice and Associate Justices of the CTA. The Presiding Justice and Associate Justices shall hold office during good behavior, until they reach the age of seventy (70), or become incapacitated to discharge the duties of their office, unless sooner removed for the same causes and in the same manner provided by law for members of the judiciary of equivalent rank." Sitting En Banc or Division; Quorum; Proceedings - The CTA may sit en banc or in three (3) Divisions, each Division consisting of three (3) Justices. Five (5) Justices shall constitute a quorum for sessions en banc and two (2) Justices for sessions of a Division. Provided, that when the required quorum cannot be constituted due to any vacancy, disqualification, inhibition, disability, or any other lawful cause, the Presiding Justice shall designate any Justice of other Divisions of the Court to sit temporarily therein.

The affirmative votes of five (5) members of the Court en banc shall be necessary to reverse a decision of a Division but a simple majority of the Justices present necessary to promulgate a resolution or decision in all other cases or two (2) members of a Division, as the case may be, shall be necessary for the rendition of a decision or resolution in the Division Level.

SALIENT FEATURES OF CTA


The CTA is a judicial (not merely an administrative body

It is a court of special jurisdiction and as such can only take cognizance of such matters as are clearly within its jurisdiction It is not strictly governed by the technical rules of evidence It should be noted that in one case, the CTA was referred to as a quasi-judicial agency VISION A specialized tax court that is impartial, competent, transparent, and worthy of public trust and confidence, ensuring faithful compliance with tax laws. MISSION To achieve its vision, the Court is guided by the following principles: 1. Fair and speedy collection of taxes by the Government;

2. Adequate judicial remedies to taxpayers against unreasonable/unjust tax assessments and refund of excessive/erroneous taxes collected; 3. 4. 5. Proper interpretation of tax statutes; Adherence to the independence of the judiciary; and Utmost deference for public trust and confidence in the judiciary.

ORGANIZATIONAL STRUCTURE The organizational set-up of the CTA is made up of the Office of the Presiding Justice, Offices of the Associate Justices, Office of the Clerks of Court, the Legal and Technical Services Office, and the Office of Administrative and Finance Services. The Presiding Justice is the Head of the Court. He has the same salary grade and enjoys the same privileges as that of the Presiding Justice of the Court of Appeals. He exercises managerial and administrative supervision over all the heads of offices and oversees the Court's operations. Assisting the Presiding Justice in his adjudicative and administrative functions are eight (8) Associate Justices, who have the same salary grade and enjoy the same privileges as those of the Associate Justices of the Court of Appeals.

Office of the Clerk of Court (OCC) The Office of the Clerk of Court is composed of an Executive Clerk of Court IV (Clerk of Court) and an Executive Clerk of Court III (Assistant Clerk of Court). Assistant Clerk of Court Further, there are three (3) Division Clerks of Court. The Clerk of Court who is under the direct supervision of the Presiding Justice assists the Justices in the holding of their En Banc sessions or hearings, and performs primarily adjudicative support functions with some non-adjudicative or administrative functions. The Division Clerks of Court are under the direct supervision of the Justices/Chairperson of their respective division. They assist their Justices in the hearing of cases in the Division level. Thus, they perform primarily adjudicative support functions with some non-adjudicative or administrative functions.

Office of Legal and Technical Services (OLTS)

Atty. Rene D. Natividad Chief of Office, OLTS The Office of the Legal and Technical Services, with Atty. Rene D. Natividad as Chief of Office, reviews and evaluates memoranda and reports on researches of the members of the staff on multifarious legal questions referred to them by the Justices before they are finally submitted to the same Justices for their consideration.

Marites B. Namoc Librarian III

Ma. Imelda C. Samonte Chief, Tax Specialist Division

Atty. Leizl L. Calimaran-Soriano Court Attorney V

Internal Audit Service (IAS)

The Internal Audit Service (IAS) is directly under the Office of the Presiding Justice. The IAS performs primarily internal control functions in accordance with government auditing rules and regulations. Soledad R. Ho CJSO, IAS Management Information Systems Division (MISD)

The MISD, under the supervision of the Office of the Senior Associate Justice, Hon. Juanito C. Castaeda, Jr., operationalize computerization projects/concerns in the Court. Vicente G. Clemente SJSO, MISD

Office of Administrative and Finance Services (OAFS)

Elsie R. Tiauzon-Forteza Chief of Office, OAFS The Office of Administrative and Finance Services (OAFS), headed by Director Elsie R. Tiauzon-Forteza, oversees the Human Resource Division, Budget Division, Accounting Division, Cash Division, Property & Supply Division, General Services Division, the Medical & Security Units and implements the Civil Service Rules and Regulations.

SAMPLES OF CTA-DECIDED CASES


1. GMA Network, Inc. v. Engr. Enrique F. Barroga, CTA EB No. 647, October 25, 2011 Facts: Pursuant to Section 206 of Local Government code (LGC) of 1991 and light of the pronouncement interpreting the phrase exclusive of this franchise in Bayantel and Digitel cases, GMA Network served

a letter with the Assessor, requesting for the exclusion, cancellation or dropping from the roll of assessments its properties which are being actually directly and exclusively used in its TV relay transmission in Cotabato City, in pursuit of its franchise for the operation of its TV broadcasting station. The Court held that tax exemptions are never presumed, the burden is on the claimant to establish clearly his right to the exemption and cannot be made out of inference or implications but must be laid beyond reasonable doubt. If such is the case, the grant of tax exemption under the Bayantel and Digitel cases cannot be claimed by GMA as already being vested to it, since it is still dependent upon a contingency of proving its entitlement thereto, and failing to do so would mean the denial of the claim. Basis: There is no vested right in a tax exemption, more so when the latest expression of legislative intent renders its continuance doubtful.

2. Kepco Philippines Corporation v. Commissioner of Internal Revenue 8437-02[-0p- 0,7 8CTA EB No. 698, October 25, 2011 Facts: Taxpayers administrative claim for refund of its unutilized input VAT for the four (4) quarters of 2004 was timely filed on October 28, 2005. Applying subsections (A) and (D) of Section 112 of the 1997 Tax Code, as amended, CIR has one hundred twenty (120) days or until February 25, 2006 to act on the application. After the lapse of the 120-day period, taxpayer may appeal the unacted administrative claim within thirty (30) days therefrom or until March 27, 2006. Notwithstanding the timely filing of the administrative claim, the judicial claim was filed only on April 25, 2006, twenty-nine (29) after the lapse of the prescribed period. Thus due to the late filing of the Petition for Review, the court has no jurisdiction to act on the said judicial claim. Basis: Petition for review filed with the CTA beyond 30 days from the end of 180 days is considered filed out of time.

3. Panay Power Corporation v. Commissioner of Internal Revenue, CTA EB Case No. 666, October 24, 2011) Facts: The taxpayer claim that it is entitled for refund or issuance of Tax credit certificate since it is a power generation company duly registered with and authorized by the Energy regulatory Commission (ERC), its sales of electricity qualify for VAT zero-rating pursuant to Section 4 (x) in relation to Section (6) of Republic Act No. 9136 (Electric Power Industry reform Act of 2001) and its Rules and Regulations to Implement such law. The court held that in order to qualify for VAT zero-rating under R.A. No. 9136, the taxpayer must be able to establish that (1) it is a power generation company and (2) it derived sales from power generation services. Basis: In order to qualify for VAT zero-rating under R.A. No. 9136, the taxpayer must be able to establish that (1) it is a power generation company and (2) it derived sales from power generation services.

4. Commissioner of Internal Revenue v. Shinryo Co., Inc., CTA Case No. 7572, October 25, 2011) Facts: In this case, although the exchange transaction pertained to the shares of stock of Shinryo Philippines, it was never a party to the exchange transaction between Shinryo Japan and Dr. Cangco. Neither did the exchange transaction benefit or the ownership of the shares of stock redound to Shinryo Philippines. Moreover, a corporation has a separate personality distinct from its stockholders and from

other corporations to which it may be connected. This feature flows from the legal theory that a corporate entity is separate and distinct from its stockholders. This means that the tax liabilities due if any by Shinryo Japan and Dr. Cangco have nothing to do with Shinryo Philippines. Shinryo Philippines is not bound by the terms of the exchange transaction between Shinryo Japan and Dr. Cangco; thus, it should not be liable for CGT and donors tax erroneously imposed by CIR. Basis: A company is not liable for capital gains tax and donors tax on the exchange of shares of stock between its stockholders.

5. Nippon Express (Philippines) Corporation vs. Commissioner of Internal Revenue, CTA Case No. 6967, August 10, 2011 Facts: The taxpayer submitted in evidence the SEC Certificates of Non-Registration to prove that its clients are not registered corporations in the Philippines. The Court ruled that this is not sufficient since the same does not prove that the same clients are non-residents doing business outside the Philippines. Thus, the sales to said clients cannot qualify for VAT zero-rating. Basis: In a claim for refund of input tax, taxpayer must prove that its non-resident client is doing business outside the Philippines.

Vous aimerez peut-être aussi