Title
Creation of Court of Tax Appeals
Law
Republic Act No. 1125
Decision Date
Jun 16, 1954
The Court of Tax Appeals, established in 1954, is a court of record with exclusive appellate jurisdiction over cases related to disputed assessments, refunds, fees, penalties, and other matters under tax and customs laws, ensuring fair and efficient resolution of tax disputes in the Philippines.

Quorum and Temporary Vacancies

  • A quorum requires any two judges.
  • Decisions must have the concurrence of two judges.
  • Temporary vacancies allow the President, upon request of the Presiding Judge, to designate a qualified Judge of First Instance to act temporarily.

Clerk of Court: Appointment, Duties, and Compensation

  • Clerk is appointed by the President with Commission on Appointments’ consent.
  • Must be a licensed lawyer.
  • Performs duties akin to Clerks of Court of First Instance under Court direction.
  • Salary set at ₱6,000/year.

Appointment and Compensation of Other Personnel

  • CTA appoints necessary subordinate personnel following Civil Service Law.
  • The Court determines their salaries and duties.

Prohibitions and Disqualifications of Court Personnel

  • Judges and employees cannot intervene in private enterprises affected by CTA functions.
  • Judges are disqualified according to Rule 126 of the Rules of Court.
  • Former permanent judges cannot practice as counsel before the Court for one year post-service.

Location and Hearing Venues

  • The Court’s office is in Manila.
  • Hearings can be held at designated times and places to minimize taxpayer inconvenience and expense.

Jurisdiction of the Court

  • Exclusive appellate jurisdiction over:
    • Decisions of the Collector of Internal Revenue on disputed assessments, refunds, penalties under the National Internal Revenue Code.
    • Decisions of the Commissioner of Customs relating to customs duties, fines, seizures, penalties.
    • Decisions from provincial/city Boards of Assessment Appeals on real property assessments under the Assessment Law.

Nature of Proceedings and Rulemaking Authority

  • The Court of Tax Appeals is a court of record with a judicially noted seal.
  • It prescribes forms of writs and processes.
  • It promulgates rules and regulations for consistent business conduct.
  • Proceedings are not strictly governed by technical rules of evidence.

Court Fees

  • The Court fixes reasonable fees for appeals, certified copies, and other authorized services.

Judicial Powers: Oaths, Subpoenas, and Contempt

  • Powers to administer oaths, receive evidence, summon witnesses, and subpoena documents.
  • Can punish contempt under Rule 64 of the Rules of Court with appropriate causes, procedures, and penalties.

Appeal Rights and Effect of Appeals

  • Appeals may be filed within 30 days by affected persons, associations, or corporations.
  • Appeals do not automatically suspend payment or collection of tax liabilities.
  • The Court can suspend tax collection to protect government or taxpayer interests upon bond or deposit.

Procedures for Taking Evidence

  • The Court or its members may take evidence or accounts upon motion or on its own initiative.
  • Assigned member conducts hearing and submits a written report with findings.
  • Final decision is made by the Court, which may adopt, modify, reject, or recommit the report.

Decision and Publication

  • Decisions must be issued within 30 days after submission.
  • Decisions must be in writing, clearly stating facts and basis in law, signed by concurring judges.
  • Publication in the Official Gazette is mandatory for public information.
  • Judges must certify timely disposition of cases before leave or salary is granted.

Effect of Statute of Limitations Bar

  • A decision that tax assessment or collection is barred by statute of limitations equates to no tax deficiency.

Publicity and Accessibility of Proceedings and Records

  • All decisions, evidence, and transcripts are public records.
  • After finality, withdrawal of original exhibits may be permitted upon motion.
  • Publication of decisions is for public access.

Damages for Frivolous Appeals

  • The Court may assess damages up to ₱500 for appeals found frivolous or instituted solely for delay.
  • Collected as fines or penalties.

Referral of Possible Criminal Violations

  • If crimes or violations related to cases arise, the Court must refer the matter for investigation or criminal/administrative action.

Supreme Court Appeals

  • Appeals to the Supreme Court can be made from CTA decisions within 30 days.
  • If the CTA fails to decide within 30 days post-submission, an aggrieved party may file a notice of intention to appeal and then directly appeal to the Supreme Court.
  • Government officials may also appeal adverse CTA decisions.
  • Such appeals have preferential docketing.

Review by Certiorari

  • Supreme Court may review CTA decisions via writ of certiorari.
  • Proceedings adhere to the Rules of Court or prescribed rules.

Appropriations for CTA Operations

  • Initial appropriations of ₱70,000 for salaries, supplies, and equipment.
  • Subsequent funding included in regular appropriation acts.

Repeals and Transitional Provisions

  • The term "Board of Tax Appeals" replaced with "Board of Assessment Appeals" in relevant laws.
  • Abolishes previous Central Board of Tax Appeals and Executive Order creating another Board.
  • Pending and decided cases under abolished boards transferred to CTA or resolved by Supreme Court respectively.
  • Repeals inconsistent laws and orders.

Certification and Remanding of Pending Cases

  • Internal Revenue and Customs tax disputes pending before Courts of First Instance are remanded to the CTA for final disposition.

Separability Clause

  • Invalidity of any part of the Act does not affect the remainder of the Act.

Effectivity

  • The Act takes effect immediately upon approval.

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