The Tax Court & its expanded jurisdiction

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.

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. The composition of the Court increased to six (6) Justices with one (1) Presiding Justice and five (5) Associate Justices.

It shall sit En Banc, or in two (2) Divisions with three (3) Justices each. A decision of a division of the CTA may be appealed to the CTA En Banc, and the latter's decision may further be appealed by verified petition for certiorari to the Supreme Court.

However, 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. Hence, the CTA is now composed of one (1) Presiding Justice and eight (8) Associate Justices. The CTA may sit en banc or in three (3) divisions with each division consisting of three (3) Justices. The CTA, as one of the Courts comprising the Philippine Judiciary, is under the supervision of the Supreme Court.

Through the enactment of Republic Act No. 9282, the jurisdiction of the CTA has been expanded to include not only civil tax cases but also cases that are criminal in nature, as well as local tax cases, property taxes and final collection of taxes.

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].

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.

READ MORE: Creation, Elevation and Expansion; Expanded Jurisdiction. cta.judiciary.gov.ph/ctamain.