 TAX LAW REVIEWER 

1 SAINT LOUIS UNIVERSITY BAR OPERATIONS

Jurisdiction:
The Court of Tax Appeals has exclusive appellate
COURT OF TAX APPEALS jurisdiction over petitions for review filed by taxpayers
questioning:

1. Decisions of the Commissioner of Internal

Nature Revenue in cases involving –
Created under Republic Act 1125, the Court of Tax Appeals
is a court of special appellate jurisdiction and a part of our a. Disputed assessment
judicial system. The proceedings therein are judicial in nature b. Refunds of internal revenue taxes, fees
although the Court is not bound by the technical rules of or other charges
evidence. (Purakan Plantation Co. vs. Domingo L-18571, 29 c. Penalties imposed in relation thereto
Oct. 1966) d. Other matters arising under the NIRC
or other laws administered by the BIR
It is a regular court vested with exclusive appellate
jurisdiction over cases arising under the: 2. Decisions of the Commissioner of Customs in
cases involving –
1. National Internal Revenue Code
2. Tariff and Customs Code a. Liability for duties, fees, or other money
3. Assessment law charges
b. Seizure , detention or release of
The CTA is a highly specialized body specially created for property affected thereby
the purpose of reviewing tax cases, its findings will not be c. Fines, forfeitures or other penalties
ordinarily be reviewed absent a showing of gross error or abuse imposed in relation thereto
on its part. These findings are binding upon the Supreme Court d. Other matters arising under thye Tariff
and in the absence of strong reasons for the court to delve on and Customs Code or other laws
fatcs, only questions of law are open for determination. administered by the Bureau of
Customs.
Organization of the Tax Court 3. Decisions of the Secretary of Finance, such as in
the imposition of dumping or countervailing duty
Composition – It is composed of a Presiding Judge and two and in automatic review cases where such
decision of the Secretary of Finance is adverse to
(2) Associate Judges each of whom shall be appointed by the taxpayer. (Appeal by an adverse party of the
decision of the Sec. of Finance must be made
the President. (Sec. 1, R.A. 1125.) within thirty (30) days from receipt thereof)

Applying the rule of construction known as ejusdem

Quorum – Any two judges shall constitute a quorum (Sec.
generis, the “other matters” that may come under the general
2, Ibid.)
clause should be of the same nature as those that have
Arrival at Decisions – The concurrence of two judges shall
preceded them. In other words, in order that a matter may
be necessary to promulgate any decisions of the Court. (Ibid)
come under the general clause, it is necessary that it
belong to the same kind or class therein specifically
enumerated. Otherwise it should be deemed foreign or
Powers
extraneous and is not included. (Ollada vs. CTA, 99 Phil
604)
The Court of Tax Appeals has, subject to the Rules of
The following are not deemed to be included in the “other
Court, the power to: matters” cognizable by the CTA:

a. Unfair competition arising from the use of

1. Administer oaths simplified set of bookkeeping records as
2. Receive Evidence it has nothing to do with any assessment
3. Summon witnesses by subpoena or refund of any tax, fee or penalty.
4. Require the production of papers or documents (Ollada vs. CTA)
by subpoena duces tecum b. Decision of the CIR relating to lease of
5. Punish for Contempt real property taken or forfeited to the
6. Promulgate rules and regulations for the conduct governe,ment for non-payment of internal
of its business revenue taxes involving as it does purely
7. Assess damages against appellant if the appeal contractual rights and obligations.
in the CTA is found to be frivolous or deilatory (Morales vs. Collector., C.T.A. Case No.
8. Suspend the Collection of the Tax pending 517, March 28, 1958)
appeal c. Controversy concerning the rights and
9. Render decisions on cases brought before it obligations of the parties under a
management arrastre contract entered

 Prepared by the TAX LAW SECTION  Chief JOCELYN ROSARIO Assistant Chief SOCRATES PADUA Members MONDAE BUENAFE,
MYLENE CANAO, MONALISA IBARRA, CESAR LACDAO, GLORIFE LICLICAN, DULCE MARTINEZ, ELILYN NATURA, DONNA
MICHELLE PINLAC, CECILYNNE ANDRADE and LOUBELLE ORTIZ. All Rights Reserved by the SAINT LOUIS UNIVERSITY COLLEGE
OF LAW BAR OPERATIONS  2003.

2 SAINT LOUIS UNIVERSITY BAR OPERATIONS
into by the Commissioner of Customs
under the authority of the Tariff and
Customs Code as it proceeds from the
contract, not from the Commissioner’s
administration of the customs laws.
The Court cannot acquire motu proprio jurisdiction to
review cases The Court likewise has no authority to take
cognizance of appeals taken from decisions of other
entities such as the Philippine Ports Authority which, by
law, assumed some of the powers of the Bureau of
Customs (Victorias Milling vs. PPA, 153 SCRA 317)
In CIR vs. CTA G.R. No. 82618, 16 March 1989, the Court
held that the CTA cannot take cognizance of petitions for
review prior to a decision of the CIR, Commissioner of
Customs or Sec. of Finance as the case maybe except:
When in a written claim for the refund of taxes, the silence or
inaction of the government may justify the filing of the
CTA petition for review just before the lapse of the 2-year
period of limitation prescribed in Sec. 229 of the NIRC .
A notice of sale following distraint and levy would be
appealable to the Court of Tax Appeals if the issue relates to the
validity of such notice as whne it is not in accord with the
assessment but not when the assessment itself, after it has
become final, is questioned such as by prescription thereof.
(Commissioner vs. Joseph 5 SCRA 895)
The Court of Tax Appeals lacks jurisdiction to take
cognizance of uncontested assessments of the BIR. The Tax
Court’s jurisdiction is over disputed assessments, and a
deficiency assessment that has not yet been questioned by the
taxpayer on the administrative level may not be said to be a
disputed one. The petitioner should have first exhausted
his administrative remedies, and it is only after his protest
is denied that a petition may be entertained by the CTA.
(Chia vs. Collector, G.R. No. 43810, 26 Sept. 1980)
The CTA can, by its own initiative, dismiss any proceedings
before it for lack of jurisdiction although the question is not
raised by the parties. (Comm. Vs. Villa and CTA, L-23988, 2 Jan
1968)
It has no criminal jurisdiction. When in the performance
of its functions it should appear to the Court that a crime or other
violation of law has been committed, it shall refer the matter to
the proper office for investigation or the institution of such
criminal or administrative action as the facts and circumstances
of the case may warrant. (Sec. 17, R.A. 1125)
A decision of the Collector of Customs forfeiting a vessel
found carrying prohibited goods is appealable to the
Commissioner and, thereafter, to the Tax Court. Regular courts
are without jurisdiction to entertain actions thereon. ( Daud vs.
Collector 68 SCRA 157)
The legality of arrastre and checking charges on exports
imposed by the Collector of Customs, when affirmed by the
Commissioner, fall within the Tax Court’s exclusive jurisdiction.
(Aboitiz and Company vs. Collector 83 SCRA 265)
Actions involving disputed assessments, surcharge and
penalty or other matters arising under the provisions of the
NIRC fall within the exclusive appellate jurisdiction of the CTA.
(Republic vs. Abella 102 SCRA 743)
 Prepared by the TAX LAW SECTION  Chief JOCELYN ROSARIO Assistant Chief SOCRATES PADUA Members MONDAE BUENAFE,
MYLENE CANAO, MONALISA IBARRA, CESAR LACDAO, GLORIFE LICLICAN, DULCE MARTINEZ, ELILYN NATURA, DONNA
MICHELLE PINLAC, CECILYNNE ANDRADE and LOUBELLE ORTIZ. All Rights Reserved by the SAINT LOUIS UNIVERSITY COLLEGE
OF LAW BAR OPERATIONS  2003.
 TAX LAW REVIEWER 
The filing of a complaint for collection with the regular
courts even before the commissioner has decided on the
disputed assessment or protest may be considered a final
decision upon which a petition for review may be brought to the
CTA. (Yabes vs. Flojo 115 SCRA 279
Issues Cognizable by the Tax Court
1. Issues essential for or incidental to the full and
complete resolution of the case.
2. Incidental question of ownership of property
levied upon or distrained by the Commissioner in
a case properly appealed to the court. (Castro
vs. David 100 Phil 454)
3. Consequential damages. (Blaquera, etc. vs.
Rodriguez)
4. Issues raised at the administrative level.
(Aguinaldo Industries Corp. vs Comm. 112 SCRA
136)
Defense of prescription of the assessment should be raised
while the case is still pending with the BIR whereas the defense
of prescription of action could be raised for the first time with the
CTA.
A Supreme Court resolution on a motion for
reconsideration of Procter and Gamble case 204 SCRA 377
held that the government is precluded from raising an
issue for the first time on appeal to the Supreme Court.
Period for CTA Decisions
Cases brought before the court shall be decided within
thirty (30) days after the submission thereof for decision. (Sec.
13, R.A. No. 1125). This provision is merely directory, hence,
decisions signed after the lapse of said period are valid ( Liddel
vs. Collector 2 SCRA 632)
Weight of CTA Factual Findings
The decisions of the CTA are appealable but the Tax
Court’s findings of facts are entitled to the highest respect.
(Raymundo vs. de Joya 101 SCRA 495)
CTA Without Jurisdiction on Final and Executory
Assessments
The ordinary courts, not the CTA, can entertain BIR money
claims based on assessments that have become final and
executory. (Republic vs. Abella 102 SCRA 743)
Appeals from the CTA
In a resolution of the Supreme court in Development Bank
of the Philippines vs. CTA, 180 SCRA 609, the court held that
appeals from the CTA can now only be taken by way of
“notice of appeal cum petition for review” with the Court
of Appeals.

3 SAINT LOUIS UNIVERSITY BAR OPERATIONS
Who May Appeal
1. Any person, association, or corporation adversely
affected by a decision or ruling of the
Commissioner of Internal Revenue or the
Commissioner of Customs. (par. 1, Sec. 11, R.A.
1125)
2. Any party aggrieved by the decision of the
Secretary of Finance in dumping cases, and
those involving the assessment of duties, where
a decision of the Commissioner of Customs
adverse to the government has been elevated to
the Sec. of Finance for review.
3. The right to appeal under Sec. 11 of R.A. No.
1125 is impliedly denied to the government or
any of its agencies, instrumentalities or officials.
(Coll. Of Customs vs. C.T.A. 102 Phil 244.) When
a situation arises where the taxpayer neither
pays the tax assessed against him nor contests
its validity before the CTA, the only remedy left
for the government is to enforce the collection by
judicial action in the ordinary courts of justice.
(Republic vs. Dy Chay, L-15705, April 15, 1961)
Period of Appeal; Commencement
The appeal shall be taken within fifteen (15) days from
notice of the award, judgment or final order or resolution or
from the date of its publication, if the publication is required
by law for its effectivity, or the denial of the petitioner’s
motion for new trial or reconsideration by filing a petition for
review with the CA, whether the appeal involves questions
of fact, or of law, or mixed questions of fact and law.
The Court of Appeals may give due course to the petition
when it shows prima facie ground to reverse or modify the
appealed order or decision. An appeal shall not stay the
order or decision unless the CA directs otherwise upon
such terms and conditions it may deem just. The appeal
shall be deemed submitted for decision upon the filing of an
answer unless the court sets the case for oral argument or
requires the parties to submit memoranda. (Supreme Court
Circular No. 1-91, 27 February 1991)
When a reconsideration is filed after the issuance of a
warrant of distraint and levy and the same is not acted upon,
the period of appeal should start only after the
commissioner acts on the request for reconsideration.
(Commissioner vs. Algue 158 SCRA 9)
The CIR must categorically state that his action is final on a
disputed assessment; otherwise the period to appeal will not
commence to run. (Advertising Associates vs. CA 133 SCRA
769)
The Appeal period, however, shall begin to run from the
receipt of summons in a civil action for collection filed by
the commissioner. The effect of an appeal to the Tax Court is
to divest the ordinary court of its jurisdiction over the case that
may have been filed by the government. (San Juan vs. Vasquez
3 SCRA 92)
 Prepared by the TAX LAW SECTION  Chief JOCELYN ROSARIO Assistant Chief SOCRATES PADUA Members MONDAE BUENAFE,
MYLENE CANAO, MONALISA IBARRA, CESAR LACDAO, GLORIFE LICLICAN, DULCE MARTINEZ, ELILYN NATURA, DONNA
MICHELLE PINLAC, CECILYNNE ANDRADE and LOUBELLE ORTIZ. All Rights Reserved by the SAINT LOUIS UNIVERSITY COLLEGE
OF LAW BAR OPERATIONS  2003.
 TAX LAW REVIEWER 
Effect of Failure to Appeal to the CTA
Failure of the taxpayer to appeal to the CTA within the
reglamentary period makes a tax assessment final, executory
and demandable. (Dayrit vs. Cruz 165 SCRA 571)
The 30-day period of appeal to the CTA is non-extendible.
A tax payer may not delay indefinitely a tax assessment by
reiterating his original defenses over and over again, without
substantial variation. (Filipinas Investment Corp. vs Comm., L-
23501, 16 May 1967.)
Effect of Appeal to the CTA
1. The appeal taken to the Court of Tax Appeals
from the decision of the commissioner of Internal
Revenue or Commissioner of Customs does not
suspend payment, levy or distraint, and/or
sale of any property of the taxpayer for the
satisfaction of his liability. (par. 2, Sec 11, R.A.
No. 1125)
2. It does not preclude the Commissioner of
Internal Revenue from making a
reassessment by increasing or decreasing a
previous assessment (Coll. Vs. Batangas trans
Co. 102 Phil 822) for a contrary rule would
enable a taxpayer to feign an appeal to hide a
connivance with unscrupulous officials for a low
assessment. The taxpayer is not prejudiced
considering that the CTA is authorized to
scrutinize the legal and factual bases of the new
assessment.
3. The government may not file a counterclaim for
an amount not included in the original
assessment which has been appealed by the
taxpayer. (Comm. Vs. Guerrero, L-19074 & L-
12089, Jan. 31, 1967.
Injunctions for the Collection of Taxes
The Tax Court is given authority to suspend tax collection
when in its view, such collection would work for the serious
prejudice of either the taxpayer or government. (Sec 11, R.A.
No. 1125). This remedy available only when there is a
pending appeal over which the CTA has jurisdiction.
(Comm. Vs. Alikpala 36 SCRA 208)
The CTA may suspend the collection of internal revenue
and customs duties in cases when the following requisites are
present:
a. In the opinion of the court, the
collection pending appeal may
jeopardize the interest of the
government and/or the taxpayer (par.2,
Sec. 11, R.A. No. 1125.)
b. The taxpayer is willing to deposit the
amount claimed or file a surety bond
for not more than double the amount of
the tax with the Court when required.
  TAX LAW REVIEWER 
4 SAINT LOUIS UNIVERSITY BAR OPERATIONS

c. The taxpayer shows that the appeal is

not frivolous not for the purpose of
merely to delay the collection of the
tax.

The CTA may require a bond, such requirement is

dispensed with when the collection of tax has already
prescribed. (Collector vs. Zulueta 100 Phil 872)

Sec. 305 (Now 218) of the NIRC providing that no court

has authority to grant a writ of injunction to restrain the collection
of any internal revenue tax, fee, or charge imposed by the code
refers to courts other than the CTA. (Blaquera, etc. vs.
Rodriguez 103 Phil 267)

The Tax Court is not authorized to issue writs of

injunctions or prohibition independently of and apart from
an appealed case. (Coll. Vs. Yuseco, L-12518, 28 Oct 1961)

An appeal to the CTA does not automatically suspend

the collection of taxes except when so enjoined by the tax
court at any stage of the proceedings and when
circumstances so warrant. (Sec. 11, R.A. 1125)

 Prepared by the TAX LAW SECTION  Chief JOCELYN ROSARIO Assistant Chief SOCRATES PADUA Members MONDAE BUENAFE,
MYLENE CANAO, MONALISA IBARRA, CESAR LACDAO, GLORIFE LICLICAN, DULCE MARTINEZ, ELILYN NATURA, DONNA
MICHELLE PINLAC, CECILYNNE ANDRADE and LOUBELLE ORTIZ. All Rights Reserved by the SAINT LOUIS UNIVERSITY COLLEGE
OF LAW BAR OPERATIONS  2003.