A.M. No.

05-11-07-CTA September 16, 2008

ANTONIO EDUARDO B.
RUBEN T. REYES
PROPOSED AMENDMENTS TO THE REVISED RULES OF THE COURT OF TAX APPEALS NACHURA
Associate Justice
Associate Justice
RESOLUTION

TERESITA J. LEONARDO-DE
Acting on the letter of the Presiding Justice, Court of Tax Appeals, submitting for the ARTURO D. BRION
CASTRO
consideration and approval of the Court the "Proposed Amendments to the Revised Rules Associate Justice
Associate Justice
of the Court of Tax Appeals," the Court Resolved to APPROVE the same.

This Rule shall take effect on October 15, 2008 following its publication in two
newspapers of general circulation. AMENDMENTS TO THE
2005 RULES OF THE COURT OF TAX APPEALS

September 16, 2008.

Pursuant to the promulgation of the Republic Act No. 9503, An Act Enlarging the
Organization 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" on June
REYNATO S. PUNO 12, 2008, the 2005 Revised Rules of the Court of Tax Appeals which was approved by the
Chief Justice Supreme Court on November 22, 2005, should now be amended.

SECTION 1. Sections 1, 3, 4, 6(a), 6(b), 6(c), 7 and 8 of Rule 2 are hereby amended to
CONSUELO YNARES- read:
LEONARDO A. QUISUMBING
SANTIAGO
Associate Justice
Associate Justice RULE 2
THE COURT, ITS ORGANIZATION AND FUNCTIONS

MA. ALICIA AUSTRIA- Section 1. Composition of the Court. – The Court is composed of a presiding
ANTONIO T. CARPIO
MARTINEZ justice and eight (8) associate justices appointed by the President of the
Associate Justice
Associate Justice Philippines. In appropriate cases, the court shall sit en banc, or in three (3)
Divisions of three (3) justices each, including the presiding justice, who shall be
the Chairperson of the First Division and the two (2) most Senior Associate
CONCHITA CARPIO- Justices shall be served as Chairpersons of the Second Divisions,
RENATO C. CORONA respectively.(a)
MORALEZ
Associate Justice
Associate Justice
xxx

ADOLFO S. AZCUNA DANTE O. TINGA Sec. 3. Court en banc; quorum and voting. - The presiding justice or, if absent,
Associate Justice Associate Justice the most senior justice in attendance shall preside over the sessions of the
Court en banc. The attendance of five (5) justices of the Court shall constitute a
quorum for its session en banc. The presence at the deliberation and the
affirmative vote of five (5) members of the Court en banc shall be necessary to
PRESBITERIO J. VELASCO,
MINITA V. CHICO-NAZARIO reverse a decision of a decision of a Division but only a simple majority of the
JR.
Associate Justice justices present to promulgate a resolution or decision in all cases. Where the
Associate Justice
necessary majority vote cannot be had, the petition shall be dismissed; in
appealed cases, the judgement or order appealed from shall stand affirmed; Sec. 8. Disqualification of clerk of court or assistant clerk of court or division
and on all incidental matters, the petition or motion shall be denied. (a) clerk of court or assistant division clerk of court. -The disqualification under the
first paragraph,Section 1,Rule 137 of the Rules of Court shall likewise apply to
the Clerk of Court or Assistant Clerk of Court or Division Clerk of Court or
Sec. 4. The Court Division: quorum and voting. - The Chairperson of the Division
Assistant Division Clerk of Court of this Court insofar as it is relevant to them
or, if absent, the most senior member shall preside over the sessions of the
in the performance of their respective functions and duties.
Court in Division . The attendance of at least two (2) justices of the court shall
be necessary to constitute a quorum for its sessions in Divisions. The presence
at the deliberation and the affirmative vote of at least two justices shall be Such person must immediately notify in writing the Presiding Justice and the
required for the pronouncement of a judgement or final resolution of the Court members of the Court en banc, or the Chairperson and the Members of the
Decision. (a) Division, whichever is applicable, stating the grounds and the reasons for
inhibition and further indicate the case number and title. The Presiding Justice
or Chairperson of the Division may approve the request for inhibition and in
Sec. 6. Disqualification of justices. -
such event appoint a temporary Clerk of Court to hear and handle the case.(n)

(a) Mandatory - No justices or other officer or employee of the Court

Section 2. - Section 3(a)(5) of Rule 4 is hereby amended to read:
shall intervene, directly or indirectly, in the management or control
of any private enterprises which in any way may be affected by the
function of the Court. Justices of the Court shall be disqualified from RULE 4
sitting in any case on the same grounds provided under the first JURISDICTION OF THE COURT
paragraph, Section 1, Rule of Court. No person who has once served
in the Court either as presiding justice or as associate justices shall
Sec. 3. Cases within the jurisdiction of the Court in Divisions. -
be qualified to practice as counsel before the Court for a period of
one year from that person's retirement or resignation as such. (a)
(a) Exclusive original over or appellate jurisdiction to review by
appeal the following:
(b) Disclosure and consent of parties and lawyers. - A justice
disqualified under the first paragraph, Section 1 of Rule 137 of the
Rules of Court, may instead of withdrawing from a case proceeding, xxx
disclose on the records the parties and lawyers, independently of
the justice's participation, all agree in writing that the reason for the
(5) Decisions of the Secretary of Finance on customs
inhibitation is immaterial or unsubstantial, the justice may
cases elevated for automatic review from decisions of the
participate in the action or proceeding. The agreement, signed by all
Commissioner of Customs adverse to the Government
parties and lawyers, shall be incorporated in the record of the action
under Section 2315 of the Tariff and Customs Code; and
or proceeding.
(a)

(c) Voluntary. - A justice of the Court may in the exercise of sound

Section 3. - Sections 4(a),5(b) and 6 of Rule 6 are hereby amended to read:
discretion, disqualify voluntarily from sitting in a case proceeding
for just or valid reasons other than those mentioned above.
RULE 6
PLEADINGS FILED WITH THE COURT
A justice of the Court who inhibits from sitting in a case proceeding shall
immediately notify in writing the presiding justice and the members of the
Division where the said justice belongs. (a) Sec. 4. Bill of particulars. -

Sec. 7. Motion to inhibit a justice. - When a motion for inhibition of a justice is (a) Requirement for bill of particulars. - The Court, on its own
filed, the Court, en banc or in Division shall act upon motion. However, if the initiative or upon motion of either party filed before responding to a
motion for inhibition is based on a discretionary ground, the Court shall refer pleading or, if no responsive pleading is permitted by these Rules,
the motion to the justice involved for appropriate action (a) within ten days after service of the pleading, may order a party to
submit a detailed statement of the nature of the claim or defense or
 of any matter stated in any pleading, which is not averred with (5) The MCLE certificate number and date of issue, unless exempt.
sufficient definiteness or particularity. Such order or motion shall
point out the defects complained of and the details desired. After
The attorney or party entering an appearance shall serve a copy of the entry of
service of the bill of particulars or of a more definite pleading, the
appearance upon the opposing party. An attorney who appears in open court
moving or adverse party may file a responsive pleading within ten
without previously having filed a written appearance must give the said
days.
counsel's business address to the Clerk of Court and file a written appearance
within forty-eight hours from such open court appearance. An attorney or
xxx party who has filed an appearance and who changes address of record shall
notify the Clerk of Court and the adverse party of such change of address, and a
separate notice of such change of address shall be filed for each additional
Sec. 5. Answer. -
case. (a)

xxx
Section 4. - Section 4, 5, 6, 7, and 10 of Rule 9 are hereby amended to read:

(b) Transmittal of records. - The respondent Commissioner of Internal

RULE 9
Revenue, Commissioner of Customs, the Secretary of Finance, the Secretary of
PROCEDURE IN CRIMINAL CASES
Agriculture, or the Secretary of Trade and Industry, within ten days after filing
an answer, the Chairperson of the Central Board of Assessment Appeals and
the presiding judges of the Regional Trial Courts, within ten days from receipt Sec. 4. Warrant of arrest. - Within ten days from the filing of the information,
of notice, shall certify and forward to the Court all the records of the case in the Division of the Court to which the case was raffled shall evaluate the
their possession, with the pages duly numbered, and, if the records are in resolution of the public prosecutor and its supporting evidence. The Division
separate folders, then the folders will also be numbered. If there are no may immediately dismiss the case if it finds that the evidence on record clearly
records, such fact shall be manifested to the Court within the same period of fails to establish probable cause. If the Division finds probable cause, it shall
ten days. The Court may, on motion, and for good cause shown, grant an issue a warrant of arrest signed by the Chairperson of the Division may order
extension of time within which to submit the aforesaid records of the case. the prosecutor to present additional evidence, ex parte, within five days from
Failure to transmit the records within the time prescribed herein or within the notice. (a)
time allowed by the Court may constitute indirect contempt of court. (a)
Sec. 5. When search warrant may issue. - The Division may issue a search
Sec. 6. Entry of appearance. - An attorney may enter an appearance by signing warrant signed by its Chairperson following the requirements of Rule 126 of
the initial pleading. An attorney may later enter an appearance only by filing an the Rules of Court. (a)
entry of appearance with the written conformity of the client.
Sec. 6. Bail, how amount fixed; approval. - The amount of bail to be posted in a
The initial pleading or entry of appearance must contain the following: case filed with the Court shall be fixed and approved by the Division to which
the case is raffled: Provided, however, that where the accused is arrested,
detained or otherwise placed in custody outside the Metropolitan Manila area,
(1) The attorney's specific address, which must not be a Post Office
any judge of the Regional Trial Court of the place where the arrest is made may
Box number;
accept and approve the bail for release of the accused and appearance before
the Division to which the case is assigned. The judge who accepted the bail and
(2) The Roll of Attorney's Number; released the accused shall inform the Division that issued the order of arrest of
the action and forward to it the papers relative to the case. (a)
(3) The date and number of current membership due in the
Integrated Bar of the Philippines (IBP) per Official Receipt, or Sec. 7. Conditions of the bail. - The conditions of the bail are that the accused
Lifetime Member Number; shall appear and answer the complaint or information in the Division of the
Court to which it is raffled or transferred for trial and submit the same to its
orders and processes. If convicted, and the case is appealed to the Court en
(4) The Current Professional Tax Receipt (PTR) number together
banc or to the Supreme Court, the accused will surrender for the execution of
with date and place of issuance; and
such judgement as the Court en banc or the Supreme Court may render; or
 that, in the event the case is to be tried anew or remanded for a new trial, the xxx
same shall appear before the Division to which it may be remanded and submit
to its orders and processes. (a)
The Court may impose appropriate sanctions or penalties on the
accused or counsel or the prosecutor who does not appear at the
Sec. 10. Solicitor General as counsel for the People and government officials sued pre-trial conference and does not offer an acceptable excuse for the
in their official capacity. - The Solicitor General shall represent the People of said person's absence and lack of cooperation. (a)
the Philippines and government officials sued in their official capacity in all
cases brought to the Court in the exercise of its appellate jurisdiction. The
Section 7. - Sections 3, 4, and 5(a) of Rule 12 are hereby amended to read:
former may deputize the legal officers of the Bureau of Internal Revenue in
cases brought under the National Internal Revenue Code or other laws
enforced by the Bureau of Internal Revenue, or the legal officers of the Bureau RULE 12
of Customs in cases brought under the Tariff and Customs Code of the TRIAL
Philippines or other laws enforced by the Bureau of Customs, to appear in
behalf of the officials of said agencies sued in their official capacity: Provided,
Sec. 3. Taking of evidence by a justice. - The Court may motu proprio or upon
however, such duly deputized legal officers shall remain at all times under the
proper motion, direct that a case, or any issue therein be assigned to one of its
direct control and supervision of the Solicitor General. (a)
members for the taking of evidence, when the determination of a question of
fact arises at any stage of the proceedings, or when the taking of an account is
Section 5. - Section 1 of Rule 10 is hereby amended to read: necessary or when the determination of an issue of fact requires the
examination of a long account. The hearing before such justice shall proceed in
all respects as though the same had been made before the Court.
RULE 10
SUSPENSION OF COLLECTION OF TAX
Upon the completion of such hearing the justice concerned shall promptly
submit to the Court a written report thereon, stating therein the findings and
SECTION 1. No suspension of collection of tax, except as herein prescribed. - No
conclusions. Thereafter, the Court shall render its decision on the case
appeal taken to the Court shall suspend the payment, levy, distraint, or sale of
adopting, modifying, or rejecting the report in whole or in part, or the Court
any property of the taxpayer for the satisfaction of tax liability as provided
may in its discretion, recommit it to the justice with instructions, or receive
under existing laws, except as hereinafter prescribed. (a)
further evidence. (a)

Section 6. - Sections 3 and 6(c), of Rule 11 are hereby amended to read:

Sec. 4. Taking of evidence by Court official. - In default or ex parte hearings or in
any case where the parties agree in writing the Court may delegate the
RULE 11 reception of evidence to the Clerk of Court, the Division Clerks of Court their
PRE-TRIAL assistants who are members of the Philippine bar or any Court attorney. The
reception of documentary evidence by a Court official shall be for the sole
purpose of marking comparison with the original and identification by
Sec. 3. Setting for an earlier date. - Where due to the urgency of the case, either
witnesses of such documentary evidence. The Court official shall have no
party desirea that the pre-trial be set on an earlier date, such party shall so
power to rule on objections shall be resolved by the Court upon submission of
state in the pleading in which event the Clerk of Court shall set the pre-trial on
exhibits, which objections shall be resolved by the Court upon submission of
the first available date immediately after the filling of the answer. (a)
the report and the transcripts within ten days from termination of the hearing.
(a)
xxx
Sec. 5. Presentation of voluminous documents or long accounts. - In the interest
Sec. 6. Procedure in criminal cases. of speedy administration of justice the following rules shall govern the
presentation of voluminous documents or long accounts such as receipts
invoices and vouchers as evidence to establish certain facts:
xxx

(a) Summary and CPA certification.

(c) During the pre-trial conference
 xxx SECTION 1. Who may and when to file motion. - Any aggrieved party may seek
a reconsideration or new trial of any decision, resolution or order of the Court
by filing a motion for reconsideration or new trial for fifteen days from the
The name of the Certified Public Accountant or partner of a professional
date of receipt of notice of the decision, resolution or order of the Court in
partnership of certified public accountants in change must be stated in the
question,. (a)
motion. The court shall issue a commission authorizing the independent CPA
to conduct an audit and, thereafter, testify relative to such summary and
certification. Sec. 2. Opposition. - the adverse party may file an opposition to the motion for
reconsideration or new trial within ten days after receipt of a copy of the
motion for reconsideration or new trial of a decision, resolution or order of the
Section 8. - Section 5 of Rule 14 is hereby amended to read:
Court. (a)

RULE 14
Sec. 5. Grounds of motion for new trial. - xxx
JUDGMENT, ITS ENTRY AND EXECUTION

(a) Fraud, accident , mistake or excusable negligence which ordinary

Sec. 5. Promulgation and notice of decision and resolution. - The Clerk of Court
prudence could not have guarded against and by reason of which
or Deputy Clerk of Court shall have the direct responsibility for the
the rights of such aggrieved party has probably been impaired: or
promulgation of the decision and resolution of the Court and shall see to it that
such decision and resolution are properly signed by the concurring and
dissenting justices and the required certification is duty accomplished. (b)Newly discovered evidence, which the party could not, with
reasonable diligence, have discovered and produced at the trial and,
which if presented, would probably alter the result.
Promulgation consists of the filing of the decision or resolution with the Clerk
of Court or Division Clerk of Court, who shall forth with annotate the date and
the time of receipt and attest to it by signing thereon. The Clerk of Court or xxx
Division Clerk of Court shall serve notice of such decision resolution upon the
parties or their counsel, furnishing them with certified true copies thereof.
Section 10. Effectivity Clause. - These Rules shall become effective October 15, 2008 after
in two newspaper of general circulation in the Philppines , (n)
In criminal cases originally filed with and decided by The Court in Division , the
Chairperson shall cause the decision or resolution to be filed with the Division
Clerk of Court in a sealed envelop, who shall schedule its promulgation, giving
notice to the prosecution, the accused personally or through bondsman or
warden, and counsel requiring their presence at the promulgation. Begun and held in Metro Manila, on Monday, the twenty-eight day of July, two thousand
three.
The promulgation shall consist of the reading by the Division Clerk of Court of
the dispositive portion of the decision or resolution in the presence of the Republic Act No. 9282 March 30 2004
accused and a justice of the Division that rendered the same. If the accused is
detained, the warden shall produce such person before the Court. However, if
the accused is detained outside Metro Manila, the Court having territorial AN ACT EXPANDING THE JURISDICTION OF THE COURT OF TAX APPEALS (CTA),
jurisdiction over the place of detention to promulgate the decision or ELEVATING ITS RANK TO THE LEVEL OF A COLLEGIATE COURT WITH SPECIAL
resolution at such place. (a) 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
Section 9. - Section 1,2, and 5(a), 5(b) of Rule 15 are hereby amended to read: PURPOSES

RULE 15 Be it enacted by the Senate and House of Representatives of the Philippine Congress
MOTION FOR RECONSIDERATION OR NEW TRIAL Assembled:
Section 1. Section 1 of Republic Act No. 1125, as amended is hereby further amended to "The affirmative votes of four (4) members of the Court en banc or two (2)
read as follows: members of a Division, as the case may be, shall be necessary for the rendition
of a decision or resolution."
"SECTION 1. Court; Justices; Qualifications; Salary; Tenure. - There is hereby
created a Court of Tax Appeals (CTA) which shall be of the same level as the Section 3. Section 3 of the same Act is hereby amended to read as follows:
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
"SEC. 3. Clerk of Court; Division Clerks of Court; Appointment; Qualification;
incumbent Presiding Judge and Associate Judges shall continue in office and
Compensation. - The CTA shall have a Clerk of Court and three (3) Division
bear the new titles of Presiding Justice and Associate Justices. The Presiding
Clerks of Court who shall be appointed by the Supreme Court. No person shall
Justice and the most Senior Associate Justice shall serve as chairmen of the two
be appointed Clerk of Court or Division Clerk of Court unless he is duly
(2) Divisions. The additional three (3) Justices and succeeding members of the
authorized to practice law in the Philippines. The Clerk of Court and Division
Court shall be appointed by the President upon nomination by the Judicial and
Clerks of Court shall exercise the same powers and perform the same duties in
Bar Council. The Presiding Justice shall be so designated in his appointment,
regard to all matters within the Court's jurisdiction, as are exercised and
and the Associate Justices shall have precedence according to the date of their
performed by the Clerk of Court and Division Clerks of Court of the Court of
respective appointments, or when the appointments of two (2) or more of
Appeals, in so far as the same may be applicable or analogous; and in the
them shall bear the same date, according to the order in which their
exercise of those powers and the performance of those duties they shall be
appointments were issued by the President. They shall have the same
under the direction of the Court. The Clerk of Court and the Division Clerks of
qualifications, rank, category, salary, emoluments and other privileges, be
Court shall have the same rank, privileges, salary, emoluments, retirement and
subject to the same inhibitions and disqualifications, and enjoy the same
other benefits as those provided for the Clerk of Court and Division Clerks of
retirements and other benefits as those provided for under existing laws for
Court of the Court of Appeals, respectively.'
the Presiding Justice and Associate Justices of the Court of Appeals.

Section 4. Section 4 of the same Act is hereby amended to read as follows:

"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 "SEC. 4. Other Subordinate Employees. - The Supreme Court shall appoint all
Associate Justices of the CTA. officials and employees of the CTA, in accordance with the Civil Service Law.
The Supreme Court shall fix their salaries and prescribe their duties."
"The Presiding Justice and Associate Justices shall hold office during good
behavior, until they reach the age of seventy (70), or become incapacitated to Section 5. Section 5 of the same Act is hereby amended to read as follows:
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
"SEC. 5. Disqualifications. - No Justice or other officer or employee of the CTA
equivalent rank."
shall intervene, directly or indirectly, in the management or control of any
private enterprise which in any way may be affected by the functions of the
Section 2. Section 2 of the same Act is hereby amended to read as follows: Court. Justices of the Court shall be disqualified from sitting in any case on the
same grounds provided under Rule one hundred thirty-seven of the Rules of
Court for the disqualification of judicial officers. No person who has once
"SEC. 2. Sitting En Banc or Division; Quorum; Proceedings. - The CTA may sit en
served in the Court in a permanent capacity, either as Presiding Justice or as
banc or in two (2) Divisions, each Division consisting of three (3) Justices.
Associate Justice thereof, shall be qualified to practice as counsel before the
Court for a period of one (1) year from his retirement or resignation."
"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
Section 6. Section 6 of the same Act is hereby amended to read as follows:
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. "SEC. 6. Place of Office. - The CTA shall have its principal office in Metro Manila
and shall hold hearings at such time and place as it may, by order in writing,
designate."
Section 7. Section 7 of the same Act is hereby amended to read as follows: Government under Section 2315 of the Tariff and
Customs Code;
"Sec. 7. Jurisdiction. - The CTA shall exercise:
"7. Decisions of the Secretary of Trade and Industry, in
the case of nonagricultural product, commodity or article,
"a. Exclusive appellate jurisdiction to review by appeal, as herein
and the Secretary of Agriculture in the case of agricultural
provided:
product, commodity or article, involving dumping and
countervailing duties under Section 301 and 302,
"1. Decisions of the Commissioner of Internal Revenue in respectively, of the Tariff and Customs Code, and
cases involving disputed assessments, refunds of internal safeguard measures under Republic Act No. 8800, where
revenue taxes, fees or other charges, penalties in relation either party may appeal the decision to impose or not to
thereto, or other matters arising under the National impose said duties.
Internal Revenue or other laws administered by the
Bureau of Internal Revenue;
"b. Jurisdiction over cases involving criminal offenses as herein
provided:
"2. Inaction by the Commissioner of Internal Revenue in
cases involving disputed assessments, refunds of internal
"1. Exclusive original jurisdiction over all criminal
revenue taxes, fees or other charges, penalties in relations
offenses arising from violations of the National Internal
thereto, or other matters arising under the National
Revenue Code or Tariff and Customs Code and other laws
Internal Revenue Code or other laws administered by the
administered by the Bureau of Internal Revenue or the
Bureau of Internal Revenue, where the National Internal
Bureau of Customs: Provided, however, That offenses or
Revenue Code provides a specific period of action, in
felonies mentioned in this paragraph where the principal
which case the inaction shall be deemed a denial;
amount o taxes and fees, exclusive of charges and
penalties, claimed is less than One million pesos
"3. Decisions, orders or resolutions of the Regional Trial (P1,000,000.00) or where there is no specified amount
Courts in local tax cases originally decided or resolved by claimed shall be tried by the regular Courts and the
them in the exercise of their original or appellate jurisdiction of the CTA shall be appellate. Any provision of
jurisdiction; law or the Rules of Court to the contrary notwithstanding,
the criminal action and the corresponding civil action for
the recovery of civil liability for taxes and penalties shall
"4. Decisions of the Commissioner of Customs in cases
at all times be simultaneously instituted with, and jointly
involving liability for customs duties, fees or other money
determined in the same proceeding by the CTA, the filing
charges, seizure, detention or release of property affected,
of the criminal action being deemed to necessarily carry
fines, forfeitures or other penalties in relation thereto, or
with it the filing of the civil action, and no right to reserve
other matters arising under the Customs Law or other
the filling of such civil action separately from the criminal
laws administered by the Bureau of Customs;
action will be recognized.

"5. Decisions of the Central Board of Assessment Appeals

"2. Exclusive appellate jurisdiction in criminal offenses:
in the exercise of its appellate jurisdiction over cases
involving the assessment and taxation of real property
originally decided by the provincial or city board of "a. Over appeals from the judgments,
assessment appeals; resolutions or orders of the Regional Trial
Courts in tax cases originally decided by them,
in their respected territorial jurisdiction.
"6. Decisions of the Secretary of Finance on customs cases
elevated to him automatically for review from decisions
of the Commissioner of Customs which are adverse to the "b. Over petitions for review of the judgments,
resolutions or orders of the Regional Trial
Courts in the exercise of their appellate Section 8. Section 10 of the same Act is hereby amended to read as follows:
jurisdiction over tax cases originally decided
by the Metropolitan Trial Courts, Municipal
"SEC. 10. Power to Administer Oaths; Issue Subpoena; Punish for Contempt. -
Trial Courts and Municipal Circuit Trial Courts
The Court shall have the power to administer oaths, receive evidence, summon
in their respective jurisdiction.
witnesses by subpoena duces tecum, subject in all respects to the same
restrictions and qualifications as applied in judicial proceedings of a similar
"c. Jurisdiction over tax collection cases as nature. The Court shall, in accordance with Rule seventy-one of the Rules of
herein provided: Court, have the power to punish for contempt for the same causes, under the
same procedure and with the same penalties provided therein."
"1. Exclusive original jurisdiction in
tax collection cases involving final Section 9. Section 11 of the same Act is hereby amended to read as follows:
and executory assessments for taxes,
fees, charges and penalties:
"SEC. 11. Who May Appeal; Mode of Appeal; Effect of Appeal. - Any party
Provided, however, That collection
adversely affected by a decision, ruling or inaction of the Commissioner of
cases where the principal amount of
Internal Revenue, the Commissioner of Customs, the Secretary of Finance, the
taxes and fees, exclusive of charges
Secretary of Trade and Industry or the Secretary of Agriculture or the Central
and penalties, claimed is less than
Board of Assessment Appeals or the Regional Trial Courts may file an appeal
One million pesos (P1,000,000.00)
with the CTA within thirty (30) days after the receipt of such decision or ruling
shall be tried by the proper
or after the expiration of the period fixed by law for action as referred to in
Municipal Trial Court, Metropolitan
Section 7(a)(2) herein.
Trial Court and Regional Trial Court.

"Appeal shall be made by filing a petition for review under a procedure

"2. Exclusive appellate jurisdiction
analogous to that provided for under Rule 42 of the 1997 Rules of Civil
in tax collection cases:
Procedure with the CTA within thirty (30) days from the receipt of the decision
or ruling or in the case of inaction as herein provided, from the expiration of
"a. Over appeals from the the period fixed by law to act thereon. A Division of the CTA shall hear the
judgments, resolutions or appeal: Provided, however, That with respect to decisions or rulings of the
orders of the Regional Central Board of Assessment Appeals and the Regional Trial Court in the
Trial Courts in tax exercise of its appellate jurisdiction appeal shall be made by filing a petition for
collection cases originally review under a procedure analogous to that provided for under rule 43 of the
decided by them, in their 1997 Rules of Civil Procedure with the CTA, which shall hear the case en banc.
respective territorial
jurisdiction.
"All other cases involving rulings, orders or decisions filed with the CTA as
provided for in Section 7 shall be raffled to its Divisions. A party adversely
"b. Over petitions for affected by a ruling, order or decision of a Division of the CTA may file a motion
review of the judgments, for reconsideration of new trial before the same Division of the CTA within
resolutions or orders of fifteens (15) days from notice thereof: Provide, however, That in criminal
the Regional Trial Courts cases, the general rule applicable in regular Courts on matters of prosecution
in the Exercise of their and appeal shall likewise apply.
appellate jurisdiction over
tax collection cases
"No appeal taken to the CTA from the decision of the Commissioner of Internal
originally decided by the
Revenue or the Commissioner of Customs or the Regional Trial Court,
Metropolitan Trial Courts,
provincial, city or municipal treasurer or the Secretary of Finance, the
Municipal Trial Courts
Secretary of Trade and Industry and Secretary of Agriculture, as the case may
and Municipal Circuit
be shall suspend the payment, levy, distraint, and/or sale of any property of
Trial Courts, in their
the taxpayer for the satisfaction of his tax liability as provided by existing law:
respective jurisdiction."
 Provided, however, That when in the opinion of the Court the collection by the for review on certiorari pursuant to Rule 45 of the 1997 Rules of Civil
aforementioned government agencies may jeopardize the interest of the Procedure."
Government and/or the taxpayer the Court any stage of the proceeding may
suspend the said collection and require the taxpayer either to deposit the
Section 13. Distraint of Personal Property and/or Levy on Real Property. - Upon the
amount claimed or to file a surety bond for not more than double the amount
issuance of any ruling, order or decision by the CTA favorable to the national government,
with the Court.
the CTA shall issue an order authorizing the Bureau of Internal Revenue, through the
Commissioner to seize and distraint any goods, chattels, or effects, and the personal
"In criminal and collection cases covered respectively by Section 7(b) and (c) property, including stocks and other securities, debts, credits, bank accounts, and
of this Act, the Government may directly file the said cases with the CTA interests in and rights to personal property and/or levy the real property of such persons
covering amounts within its exclusive and original jurisdiction." in sufficient quantity to satisfy the tax or charge together with any increment thereto
incident to delinquency. This remedy shall not be exclusive and shall not preclude the
Court from availing of other means under the Rules of Court.
Section 10. Section 13 of the same Act is hereby amended to read as follows:

Section 14. Retention of Personnel; Security of Tenure; Upgrading of Positions and

"SEC. 13. Decision, Maximum Period for Termination of Cases. - Cases brought
Salaries. - All existing permanent personnel of the CTA shall not be adversely affected by
before the Court shall be decided in accordance with Section 15, paragraph (1),
this Act. They shall continue in office and shall not be removed or separated from the
Article VIII (Judicial Department) of the 1987 Constitution. Decisions of the
service except for cause as provided for by existing laws. Further, the present positions
Court shall be in writing, stating clearly and distinctly the facts and the law on
and salaries of personnel shall be upgraded to the level of their counterparts in the Court
which they are based, and signed by the Justices concurring therein. The Court
of Appeals.
shall provide for the publication of its decision in the Official Gazette in such
form and manner as may best be adopted for public information and use.
Section 15. Transitory Provisions. - In consonance with the above provision, the
incumbent Presiding Judge and Associate Judges shall comprise a Division pending the
"The Justices of the Court shall each certify on their applications for leave, and
constitution of the entire Court.
upon salary vouchers presented by them for payment, or upon the payrolls
under which their salaries are paid, that all proceedings, petitions and motions
which have been submitted to the Court for determination or decision for a Section 16. Appropriations. - The amount necessary to carry out the provisions of this
period required by the law or the Constitution, as the case may be, have been Act shall be included in the General Appropriations Act of the year following its
determined or decided by the Court on or before the date of making the enactment into law and thereafter.
certificate, and no leave shall be granted and no salary shall be paid without
such certificate."
Section 17. Repealing Clause. - All laws, executive orders, executive issuances or letter of
instructions, or any part thereof, inconsistent with or contrary to the provisions of this
Section 11. Section 18 of the same Act is hereby amended as follows: Act are hereby deemed repealed, amended or modified accordingly.

"SEC. 18. Appeal to the Court of Tax Appeals En Banc. - No civil proceeding Section 18. Separability Clause. - If for any reason, any section or provision of this Act
involving matter arising under the National Internal Revenue Code, the Tariff shall be declared unconstitutional or invalid, the other parts thereof not affected thereby
and Customs Code or the Local Government Code shall be maintained, except shall remain valid.
as herein provided, until and unless an appeal has been previously filed with
the CTA and disposed of in accordance with the provisions of this Act.
Section 19. Effectivity Clause - This Act shall take effect after fifteen (15) days following
its publication in at least (2) newspapers of general circulation.
"A party adversely affected by a resolution of a Division of the CTA on a motion
for reconsideration or new trial, may file a petition for review with the CTA en
banc."

"SEC. 19. Review by Certiorari. - A party adversely affected by a decision or

ruling of the CTA en banc may file with the Supreme Court a verified petition