JUDICIAL REMEDIES 1

XI.
JUDICIAL REMEDIES
A. Jurisdiction of the Court of Tax Appeals

1. Exclusive Appellate Jurisdiction

a. Cases within the Jurisdiction of the Court en banc

CODAL REFERENCE: Section 7, RA 1125, as amended by RA 9282 and Section 2, Rule 4,

Revised Rules of the Court of Tax Appeals

Q. What are the cases within the exclusive appellate jurisdiction to review by
appeal of the CTA en banc?

A. The Court en banc shall exercise exclusive appellate jurisdiction to review by

appeal the following:

(a) Decisions or resolutions on motions for reconsideration or new trial of the

Court in Division in the exercise of its exclusive appellate jurisdiction over:

(1) Cases arising from administrative agencies, namely the Bureau of

Internal Revenue, Bureau of Customs, Department of Finance,
Department of Trade and Industry, and Department of Agriculture;
(2) Local tax cases decided by the Regional Trial Courts in the exercise of
their original jurisdiction;
(3) Tax collection cases decided by the Regional Trial Courts, in the
exercise of their original jurisdiction involving final and executory
assessments for taxes, fees, charges, and penalties, where the principal
amount of taxes and penalties claimed is less than One Million Pesos
(P1,000,000);
(4) Cases involving criminal offenses arising from violations of the National
Internal Revenue Code or the Tariff and Customs Code and other laws
administered by the Bureau of Internal Revenue or Bureau of Customs.

(b) Decisions, resolutions or orders on motions for reconsideration or new

trial of the Court in Division in the exercise of its exclusive original
jurisdiction over:
JUDICIAL REMEDIES 2

(1) Tax Collection cases;

(2) Cases involving criminal offenses arising from violations of the National
Internal Revenue Code or the Tariff and Customs Code and other laws
administered by the Bureau of Internal Revenue or Bureau of Customs.

(c) Decisions, resolutions or orders of the RTCs in the exercise of its appellate
jurisdiction over:

(1) Local tax cases;

(2) Tax Collection cases;
(3) Criminal offenses arising from violations of the NIRC or TCC and other
laws administered by the BIR or BOC.

(d) Decisions of the Central Board of Assessment Appeals in the exercise of

its appellate jurisdiction over cases involving assessment and taxation of
real property originally decided by the provincial or city board of
assessment appeals.

b. Cases within the Jurisdiction of the Court in Divisions

CODAL REFERENCE: Section 7, RA 1125, as amended by RA 9282 and Section 3(a), Rule 4,
Revised Rules of the Court of Tax Appeals

Q. What are the cases within the exclusive appellate jurisdiction to review by
appeal of the CTA in division?

A. The Court in Divisions shall exercise exclusive original or appellate

jurisdiction to review by appeal the following:

(a) Decisions of the Commissioner of Internal Revenue in:

(1) Cases involving disputed assessments, refunds of internal revenue taxes,

fees or other charges, penalties in relation thereto; or
(2) Other maters arising under the NIRC or other laws administered by the
BIR
JUDICIAL REMEDIES 3

(b) Inaction by the Commissioner of Internal Revenue where the National

Internal Revenue Code or other applicable law provides a specific period
for action in:

(1) Cases involving disputed assessments, refunds of internal revenue taxes,

fees or other charges, penalties in relation thereto, or
(2) Other matters arising under the NIRC or other laws administered by the
BIR;

(c) Decisions, orders or resolutions of the Regional Trial Courts in local tax
cases decided or resolved by them in the exercise of their original
jurisdiction;

(d) Decisions of the Commissioner of Customs in:

(1) Cases involving liability for customs duties, fees, or other money
charges, seizure, detention or release of property affected, fines,
forfeitures of other penalties in relation thereto; or
(2) Other matters arising under the Customs Law or other laws
administered by the Bureau of Customs;

(e) 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 Government under Section 2315 of the Tariff
and Customs Code; and

(f) Decisions of the Secretary of Trade and Industry in the case of non-
agricultural product, commodity or article and the Secretary of Agriculture
in case of agricultural product, commodity or article, involving dumping
and countervailing duties under Sections 301 and 302 of the Tariff and
Customs Code and safeguard measures under the RA 8800 or the
Safeguard Measures Act where either party may appeal the decision to
impose or not to impose said duties.

Q. What “other matters” are cognizable by the Court of Tax Appeals?

JUDICIAL REMEDIES 4

A. The “other matters” cognizable by the Court of Tax Appeals should be of the
same nature, kind or class as the matters specifically enumerated as within its
jurisdiction, applying the statutory construction rule of ejusdem generis.1

In Philippine Journalist, Inc. v. Commissioner of Internal Revenue,2 the

Supreme Court noted that the appellate jurisdiction is not limited to cases
which involve decisions of the Commissioner of Internal Revenue on matters
relating to assessments or refunds as the second part of Section 7(a)(1) of RA
1125, as amended by RA 9282, covers other cases that arise out of the NIRC
or related laws administered by the Bureau of Internal Revenue. The Court
of Tax Appeals has jurisdiction to determine the validity of warrants of
distraint/levy and the waiver of statute of limitations.

Q. A was assessed for income tax deficiency. The taxpayer failed to file a protest
and, thus, the said assessment has become final and unappealable.
Thereafter, the taxpayer filed a petition for review with the Court of Tax
Appeals arguing that the right of the Commissioner to collect the assessed tax
has prescribed. The Commissioner contends that the Court of Tax Appeals
has no jurisdiction because when the law says that the Court of Tax Appeals
has jurisdiction over “other matters” it presupposes that the tax assessment
has not become final and unappealable. Is the Commissioner’s contention
correct?

A. No. The fact that an assessment has become final for failure of the taxpayer
to file a protest within the time allowed only means that the validity or
correctness of the assessment may no longer be questioned on appeal.
However, the validity of the assessment itself is a separate and distinct issue
from the issue of whether the right of the Commissioner to collect the validly
assessed tax has prescribed. This issue of prescription, being a matter
provided for by the NIRC, is well within the jurisdiction of the Commissioner
to decide.3

1 Ollada v. Court of Tax Appeals, G.R. No. L-8878, July 24, 1956; Acting Collector of Customs v.
Court of Tax Appeals, G.R. No. L-8811, October 31, 1957.
2 G.R. No. 162852, December 16, 2004; See Pantoja v. David, G.R. No. L-10765, February 28, 1961;

Commissioner of Internal Revenue v. Court of Tax Appeals, G.R. No. 115712, February 25, 1999.
3 Commissioner of Internal Revenue v. Hambrecht & Quist Philippines, Inc., G.R. No. 169225,

November 17, 2010.

JUDICIAL REMEDIES 5

Q. Does the Court of Tax Appeals have jurisdiction over a special civil action
for certiorari assailing an interlocutory order issued by the Regional Trial
Court in a local tax case?

A. Yes. In City of Manila v. Hon. Grecia-Cuerdo,4 the Supreme Court ruled that
the power of the Court of Tax Appeals includes the determination of whether
there has been gave abuse of discretion amounting to lack or excess of
jurisdiction on the part of the Regional Trial Court in issuing an interlocutory
order in cases falling within the exclusive appellate jurisdiction of the Court
of Tax Appeals. By constitutional mandate, the Court of Tax Appeals is
vested with jurisdiction to issue writs of certiorari in these cases. The
Supreme Court reasoned that, for any appellate court to effectiviely exercise
its appellate jurisdiction, it must have the authority to issue, among others, a
writ of certiorari.

NOTE: As provided in Section 1, Rule 41 of the Rules of Court, no appeal may be taken
from an interlocutory order of a Regional Trial Court. The Supreme Court has said that
the remedy against such an interlocutory order is an appropriate special civil action under
Rule 65 to be filed with the Court of Appeals. Under this rule, the Court of Appeals would
have the jurisdiction to issue the writ of certiorari against the interlocutory order of the
Regional Trial Court while the Court of Tax Appeals would have jurisdiction over the
appeal from the decision of the Regional Trial Court. In City of Manila v. Hon. Grecia-
Cuerdo,5 the Supreme Court ended this split-jurisdiction situation by ruling that the Court
of Tax Appeals, in aid of its appellate jurisdiction, has the power to issue a writ of
certiorari against an interlocutory order of the Regional Trial Court.

Q. Is an adverse ruling of the Secretary of Finance in the exercise of its power

of review under Section 4 of the NIRC appealable to the Court of Tax
Appeals?

A. Yes. In Philippine American Life and General Insurance Company v. The

Secretary of Finance and Commissioner of Internal Revenue,6 the Supreme
Court held that review by the Secretary of Finance pursuant to Section 4 of
the NIRC, as amended, of a BIR Ruling is appealable to the Court of Tax
Appeals. The Court opined that Section 7(a)(1) of RA 1125, as amended by
RA 9282, addresses the seeming gap in the law as it vests in the Court of Tax
Appeals, albeit impliedly, with jurisdiction over the appeal from the Secretary

4
G.R. No. 175723, February 4, 2014.
5
G.R. No. 175723, February 4, 2014.
6 G.R. No. 210987, November 24, 2014.
JUDICIAL REMEDIES 6

of Finance’s review of rulings of the Commissioner of Internal Revenue as

“other matters” arising under the NIRC or other laws administered by the
BIR. Further, the Court reiterated that, as held in City of Manila v. Hon.
Grecia-Cuerdo,7 the Court of Tax Appeals now has the power of certiorari in
cases within its appellate jurisdiction.

In Banco de Oro v. Republic,8 the Supreme Court likewise held that the
jurisdiction to review the rulings of the Commissioner of Internal Revenue
pertains to the Court of Tax Appeals. The Court also cited Section 7(a)(1) of
RA 1125, as amended by RA 9282 and considered BIR rulings as decisions
of the Commissioner of Internal Revenue in matters arising under the
National Internal Revenue Code or other laws administered by the Bureau
of Internal Revenue.

NOTE: In Asia International Auctioneers, Inc v. Parayno, 9 the taxpayer questioned a

revenue regulation and a revenue memorandum circular while in Commissioner of
Internal Revenue v. Leal, 10 the taxpayer questioned a revenue memorandum order and a
revenue memorandum circular. In both cases, the Supreme Court said that the issuances
were actually rulings or opinions of the Commissioner implementing the Tax Code and
rulings or opinions of the Commissioner of Internal Revenue are appealable to the Court
of Tax Appeals, and not the regular courts. Following British American Tobacco. v.
Camacho,11 it has been argued that if constitutionality or validity of a rule or regulation is
interposed as an issue in questioning the ruling or opinion of the Commissioner, the
regular courts have jurisdiction, and not the Court of Tax Appeals. This has been clarified
in Philippine American Life and General Insurance Company v. The Secretary of Finance
and Commissioner of Internal Revenue,12 where the Supreme Court held that the Court
of Tax Appeals, through its power of certiorari, may now rule on the issue of validity so
long as it is within its appellate jurisdiction.

Q. Does the CTA have jurisdiction relative to matters involving the validity of a
rule or regulation issued by the Bureau of Internal Revenue?

A. Yes. In Philippine American Life and General Insurance Company v. The

Secretary of Finance and Commissioner of Internal Revenue,13 the Supreme
Court held that the Court of Tax Appeals can now rule not only on the
7
G.R. No. 175723, February 4, 2014.
8 G.R. No. 198756, January 13, 2015.
9 G.R. No. 163445, December 18, 2007.
10 G.R. No. 113459, November 18, 2002.
11 G.R. No. 163583, August 20, 2008.
12 G.R. No. 210987, November 24, 2014.
13 G.R. No. 210987, November 24, 2014.
JUDICIAL REMEDIES 7

propriety of an assessment or tax treatment of a certain transaction, but also

on the validity of the revenue regulation or revenue memorandum circular on
which the assessment is based. The Court cited the case of City of Manila v.
Hon. Grecia-Cuerdo14 where it held that the Court of Tax Appeals has the
power of certiorari in cases within its appellate jurisdiction. The Court then
ruled that it is now within the power of the Court of Tax Appeals, through its
power of certioriari, to rule on the validity of a particular administrative rule
or regulation so long as it is within its appellate jurisdiction.

NOTE: In British American Tobacco. v. Camacho,15 the Supreme Court held that the
jurisdiction of the Court of Tax Appeals does not include cases where the constitutionality
of a law or rule is challenged. The determination of the validity or constitutionality of a
law or a rule or regulation issued by an administrative agency is within the jurisdiction of
the regular courts, not the Court of Tax Appeals. Did the case of Philippine American Life
and General Insurance Company abandon this doctrine? Not entirely. The doctrine laid
down by the Supreme Court in said case is to the effect that the Court of Tax Appeals may
now rule on the validity of a rule or regulation so long as it is within its appellate
jurisdiction. Emphasis must be given to the phrase “so long as it is within its appellate
jurisdiction.” This means that the Court of Tax Appeals is vested with jurisdiction to rule
on the validity of a rule or regulation only if the issue on validity is hinged on an assessment,
refund, or the other matters arising under the NIRC or other laws administered by the
Bureau of Internal Revenue, which includes rulings or opinions of the Commissioner of
Internal Revenue. If the validity of a rule or regulation is directly challenged meaning that
it is not relative to any refund, assessment, or other matter where the Court of Tax Appeals
has jurisdiction, such is within the jurisdiction of the regular courts, and not the Court of
Tax Appeals. After all, the Court of Tax Appeals does not have original jurisdiction to issue
a writ of certiorari. It may issue the same only within its appellate jurisdiction.

2. Criminal Cases

NOTE: The following applies to the Court of Tax Appeals in Divisions. Note that, with regard
to criminal cases, the CTA en banc has exclusive appellate jurisdiction over the decisions or
resolutions on motions for reconsideration or new trial of the Court of Tax Appeals in Division
in the exercise of its exclusive appellate jurisdiction or in the exercise of its exclusive original
jurisdiction over criminal offenses arising from violations of the NIRC or TCC and other tax
laws.

a. Exclusive original jurisdiction

14
G.R. No. 175723, February 4, 2014.
15
G.R. No. 163583, August 20, 2008.
JUDICIAL REMEDIES 8

CODAL REFERENCE: Section 7(b)(1), RA 1125, as amended by RA 9282 and Section 3(b)(1),
Rule 4, Revised Rules of the Court of Tax Appeals

Q. What are the criminal cases within the exclusive original jurisdiction of the
Court of Tax Appeals in Division?

A. The Court of Tax Appeals in Division shall exercise exclusive original

jurisdiction over all criminal offenses arising from violations of the NIRC or
Tariff and Customs Code and other laws administered by the Bureau of
Internal Revenue and the Bureau of Customs, where the principal amount of
taxes and fees, exclusive of charges and penalties, is One Million Pesos
(P1,000,000) or more, exclusive of charges and penalties, arising from
violations of the NIRC, TCC and other laws administered by the BOC or the
BIR.

NOTE: If the principal amount of taxes and fees, exclusive of charges and penalties, is less
than P1,000,000 or where there is no specified amount claimed, original jurisdiction is
vested in the regular courts, not the Court of Tax Appeals. The Court of Tax Appeals
would instead have appellate jurisdiction.

b. Exclusive appellate jurisdiction

Codal Reference: Section 7(b)(2), RA 1125, as amended by RA 9282 and Section 3(b)(2),
Rule 4, Revised Rules of the Court of Tax Appeals

Q. What are the criminal cases within the exclusive appellate jurisdiction of the
Court of Tax Appeals in Division?

A. The Court of Appeals in Division shall have exclusive appellate jurisdiction

in criminal offenses:

(1) Over appeals from judgments, resolutions or orders of the Regional Trial
Courts in tax cases originally decided by them in their respective territorial
jurisdiction; and
(2) Over petitions for review of the judgments, resolutions or orders of the
Regional Trial Courts in the exercise of their appellate jurisdiction over
tax cases originally decided by the Metropolitan Trial Courts, Municipal
Trial Courts or Municipal Circuit Trial Courts in their respective
jurisdiction.
JUDICIAL REMEDIES 9

2. Tax Collection Cases

a. Exclusive original jurisdiction

CODAL REFERENCE: Section 7(c)(1), RA 1125, as amended by RA 9282 and Section 3(c)(1),
Rule 4, Revised Rules of the Court of Tax Appeals

Q. What are the tax collection cases within the exclusive original jurisdiction of
the Court of Tax Appeals in Division?

A. The Court of Tax Appeals in Division shall exercise exclusive original

jurisdiction in tax collection cases involving final and executory assessments
for txes, fees, charges, and penalties, where the principal amount of taxes and
fees, exclusive of charges and penalties, claimed is One Million Pesos
(P1,000,000) or more.

NOTE: The regular courts, not the Court of Tax Appeals in Division, has original
jurisdiction if the principal amount of taxes and fees, exclusive of charges and penalties, is
less than P1,000,000. It must be noted that pursuant to Section 19 of BP 129, the Regional
Trial Court has original jurisdiction if the principal amount of taxes and fees, exclusive of
charges and penalties, exceeds P300,000 or in such other cases in Metro Manila, such
principal amount exceeds P400,000. The Metropolitan Trial Courts, Municipal Trial
Courts and Municipal Trial Court has original jurisdiction if the principal amount of taxes
and fees, exclusive of charges and penalties, does not exceed P300,000 or in such other
cases in Metro Manila, such principal amount does not exceed P400,000.

b. Exclusive appellate jurisdiction

CODAL REFERENCE: Section 7(c)(1), RA 1125, as amended by RA 9282 and Section 3(c)(1),
Rule 4, Revised Rules of the Court of Tax Appeals

Q. What are the tax collection cases within the exclusive appellate jurisdiction
of the Court of Tax Appeals in Division?

A. The Court of Tax Appeals in Division shall exercise exclusive appellate

jurisdiction in tax collection cases:

(1) Over appeals from judgments, resolutions or orders of the Regional Trial
Courts in tax collection cases originally decided by them in their respective
territorial jurisdiction; and
JUDICIAL REMEDIES 10

(2) Over petitions for review of the judgments, resolutions or orders of the
Regional Trial Courts in the exercise of their appellate jurisdiction over
tax collection cases originally decided by the Metropolitan Trial Courts,
Municipal Trial Courts or Municipal Circuit Trial Courts in their
respective jurisdiction.

Q.What is the effect of non-payment of docket fees?

A. Without payment of the docket fees, the Court of Tax Appeals does not
acquire jurisdiction over the subject matter of the action and the decision sought
to be appealed from becomes final and executor. The failure to pay the
prescribed docket fees produces the effect of not having filed the petition at all.
It must be noted that payment of docket fees in full within the prescribed period
is mandatory for the perfection of an appeal.16

B. Judicial Procedures

1. Pleadings filed with the Court of Tax Appeals

CODAL REFERENCE: Rule 6, Revised Rules of Court of Tax Appeals

Q. What are the contents of the complaint?

A. The complaint shall contain allegations showing jurisdiction of the Court and
a concise statement of the complete facts of the plaintiff’s cause or causes of
action. The complaint shall be verified and must contain a certification against
forum shopping.17

Q. What are the contents of the petition for review?

A. The petition for review shall contain allegations showing the jurisdiction of
the CTA, a concise statement of the complete facts and a summary statement of
the issues involved in the case as well as the reasons relied upon for the review
of the challenged decision. The petition shall be verified and must contain a
certification against forum shopping. A clearly legible duplicate original or

16
Macario Lim Gaw, Jr. v. Commissioner of Internal Revenue, CTA EB Crim Case No. 028 (CTA
Crim Case No. O-206 & O-207 and CTA Case No. 8503), December 22, 2014.
17 Rule 6, Section 1.
JUDICIAL REMEDIES 11

certified true copy of the decision appealed from shall be attached to the
petition.18

Q. Is a bill of particulars allowed in the Court of Tax Appeals?

A. Yes. The CTA, on its own initiative or upon motion of either party filed before
responding to a pleading, or if no responsive pleading is permitted, within ten
(10) days after service of the pleading upon him, 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 sufficient definiteness or particularity.
Such order or motion shall point out the defect complains of and the details
desired. After service of the bill of particulrs or of a more definite pleading, the
moving or adverse party may file his responsive pleading within ten days.19

NOTE: If the order is not complied with within 10 days after notice of the order, or within such
other time as the Court may fix, the court may strike out the pleading to which the motion was
directed or may such other order as it deems just. The Court may upon motion set aside the
order, or modify it in the interest of justice.20 It must be noted that a motion ofr bill of
particulars is not allowed in the following cases: (1) when the CTA in Division exercises
exclusive appellate jurisdiction to review by appeal the decisions, resolutions, or orders of the
Regional Trial Courts in local tax cases decided or resolved by them in the exercise of their
original jurisdiction; and (2) when the CTA in Division exercise exclusive appellate jurisdiction
over appeals from the judgments, resolutions, or orders of the Regional Trial Courts in tax
collection cases originally decided by them within their respective territorial jurisdiction.21

Q. When should the answer be filed and what are its contents?

A. The answer to the petition or complaint shall be filed within fifteen (15) days
after service or summons. The answer shall include all defenses in law and the
specific provisions of law and applicable jurisprudence and grounds for dismissal
of the petition or complaint, or which shall prevent and bar recovery.22

Q. When should the records be transmitted?

18
Rule 6, Section 2.
19
Rule 6, Section 4(a)
20 Rule 6, Section 4(b)
21 Section 4(c), Rule 6
22 Rule 6, Section 5(a)
JUDICIAL REMEDIES 12

A. The respondent Commissioner of Internal Revenue, Commissioner of

Customs, the Secretary of Finance, the Secretary of Agriculture, or the Secretary
of Trade and Industry, within ten (10) days after his answer, the chairman of the
Central Board of Assessment Appeals and the presiding judges of the Regional
Trial Courts, within 10 days from receipt of notice, shall certify and forward to
the Court all the records of the case in their possession. If there are no records,
such fact shall be manifested to the CTA within the same period of 10 days. The
Court may, on motion, and for good cause shown, grant an extension of time
within which to submit the records of the case. Failure to transmit the records
within the time prescribed or within the time allowed by the Court may constitute
indirect contempt.23

2. Civil Cases

a. Who may appeal, mode of appeal, effect of appeal

CODAL REFERENCE: Section 11, RA 1125, as amended by RA 9282 and Section 3, Rule 8,
Revised Rules of Court of Tax Appeals

Q. Who may appeal to the CTA?

A. The following may file an appeal with the CTA within thirty (30) days after
receipt of such decision or ruling or after the expriration of the period fixed
by law for action:

(1) Any party adversely affected by a decision, ruling, or the inaction of:
(a) Commissioner of Internal Revenue;
(b) Commissionerof Customs;
(c) Secretary of Finance;
(d) Secretary of Trade and Industry;
(e) Secretary of Agriculture;
(f) Central Board of Assessment Appeals;
(g) Regional Trial Courts (in the exercise of its original jurisdiction)

(2) Any party adversely affected by a decision or resolution of the CTA in

Division on a motion for reconsideration or new trial;

23
Rule 6, Section 5(b)
JUDICIAL REMEDIES 13

(3) Any party adversely affected by a decision or ruling of the Central Board
of Assessment Appeals and the Regional Trial Court (in the exercise of
their appellate jurisdiction).

CODAL REFERENCE: Section 4, Rule 8, Revised Rules of the Court of Tax Appeals

Q. What are the different modes and periods of appeal for civil cases?

A. The following are the different modes and periods of appeal in the CTA for
civil cases:

(1) An appeal via a petition for review as provided in Rule 42 of the Rules of
Court to be acted upon the CTA in division with respect to a decision,
ruling or inaction of:

(a) Commissioner of Internal Revenue;

(b) Commissioner of Customs;
(c) Secretary of Finance;
(d) Secretary of Trade and Industry;
(e) Secretary of Agriculture;
(f) Central Board of Assessment Appeals;
(g) Regional Trial Courts (in the exercise of its original jurisdiction)

The petition for review shall be filed within thirty (30) days after receipt
of a copy of such decision or ruling, or expiration of the period fixed by
law for the Commissioner of Internal Revenue to act on the disputed
assessments. In the case of inaction of the Commissioner of Internal
Revenue on claims for refund of erroneously or illegally collected internal
revenue taxes, the taxpayer must file the petition for review within the
two-year prescriptive period.

NOTE: The appeal is through a petition for review in accordance with Rule 42 of the
Rules of Court. It must be observed, however, that Rule 42 states that the petition
shall be filed within fifteen (15) days. Upon proper motion and payment of the full
amount of the docket and other lawful fees and the deposit for costs before the
expiration of the reglementary period, the Court may grant an additional 15 days only
within which to file the petition for revew. For the most compelling reason, an
extension which in no case to exceed 15 days may be granted. Nonetheless, since the
RA 1125, as amended by RA 9282, fixes the period at 30 days. Such 30-day period
should apply.
JUDICIAL REMEDIES 14

(2) Appeal via a petition for review as provided in Rule 43 to be acted upon
the CTA en banc with respect to a decision or resolution of the Court in
Division on motion for reconsideration or new trial.

The petition for review shall be filed within fifteen (15) days from the
receipt of a copy of the questioned decision or resolution. Upon proper
motion and payment of the full amount of the docket and other lawful fees
and deposit for costs before the expiration of the reglementary period, the
Court may grant an additional period not exceeding 15 days from the
expiration of the original period within which to file the petition for
review.

NOTE: In cases falling under the exclusive appellate jurisdiction of the CTA en banc, a
petition for review of a decision or resolution of the Court in Division must be
preceded by the filing of a timely MR or MNT with the Division.24

(3) Appeal via a petition for review as provided in Rule 43 to be acted upon
the CTA en banc with respect to the decisions or rulings of:

(a) Central Board of Assessment Appeals;

(b) Regional Trial Courts, in the exercise of their appellate jurisdiction.

The petition for review shall be filed within thirty (30) days from the
receipt of a copy of the questioned decision or ruling.

Q. Can the thirty-day period to file a petition for review with the Court of Tax
Appeals of an adverse decision or ruling of the Regional Trial Court in the
exercise of its original jurisdiction be extended?

A. Yes. In City of Manila v. Coca-Cola Bottlers Philippines, Inc.25 and SM Land,

Inc. v. City of Manila,26 the Supreme Court has held the 30-day period to
appeal the decision of the Regional Trial Court to the Court of Tax Appeals
is extendible. The Court observed the while the law clearly provides that the
taxpayer must file a petition for review with the Court of Tax Appeals within
thirty (30) days from receipt of adverse decision or ruling of the Regional

24
Section 1, Rule 8, RRCTA.
25
G.R. No 181845, August 4, 2009.
26 G.R. No. 197151, October 22, 2012.
JUDICIAL REMEDIES 15

Trial Court, the rule is silent as to whether the 30-day period can be extended
or not. However, Section 11 of Republic Act No. 9282 states that the Petition
for Review shall be filed with the CTA following the procedure analogous to
Rule 42 of the Rules of Court. Section 1, Rule 42 of the Rules of Court
provides that the petition for review of an adverse judgment or final order of
the RTC must be filed with the Court of Appeals within: (1) the original 15-
day period from receipt of the judgment or final order to be appealed; (2) an
extended period of 15 days from the lapse of the original period; and (3) only
for the most compelling reasons, another extended period not to exceed 15
days from the lapse of the first extended period. Following by analogy, Section
1, Rule 42 of the Rules of Court, the 30-day original period for filing a petition
for review with the CTA under Section 11 of Republic Act No. 9282, as
implemented by Section 3 (a), Rule 8 of the Revised Rules of the CTA, may
be extended for a period of 15 days. No further extension shall be allowed
thereafter, except only for the most compelling reasons, in which case the
extended period shall not exceed 15 days.

CODAL REFERENCE: Section 11, RA 1125, as amended by RA 9282.

Q. What is the effect of the appeal?

A. No appeal taken to the Court of Tax Appeals shall suspend the payment, levy,
distraint and/or sale of any of the taxpayer’s property for the satisfaction of
his tax liability. However, when in the opinion of the CTA the collection of the
tax may jeopardize the interest of the Government and/or the taxpayer, the
Court at any stage of the proceedings may suspend or restrain the collection
of the tax and require the taxpayer either to deposit the amount claimed or to
file a surety bond for no more than double the amount with the Court.

NOTE: Again, it must be emphasized that the injunction contemplated here can only be
issued by the CTA in the exercise of its appellate jurisdiction.27

As to the “amount claimed” for purposes of the deposit or surety bond that is required to
suspend the collection of tax, the phrase has been generally taken to mean the total amount
of deficiency taxes including interest, penalties, and surcharges. However, CTA En Banc
Resolution 2-2015 has limited the meaning of the “amount claimed” in Section 11 of RA
1125, as amended, to the principal amount of the deficiency taxes only, excluding penalties,
interest, and surcharges.

27
Commissioner of Internal Revenue v J.C. Yuseco, G.R. No. L-12518, October 28, 1961]
JUDICIAL REMEDIES 16

Codal Reference: Rule 10, Revised Rules of the Court of Tax Appeals

Q. Who may file the motion for suspension of collection of tax and when must
said motion be filed?

A. An interested party may file a motion for the suspension of the collection of
the tax liability. The motion may be filed together with the petition for review, or
in a separate motion filed by the interested party at any stage of the
proceedings.28

Q. What are the contents and attachments of the motion for the suspension of
the collection of tax?

A. The motion for the suspension of the collection of tax shall be verified and
shall state clearly and distinctly the facts and the grounds relied upon in support
of the motion. Affidavits and other documentary evidence in support of the
motion shall be attached thereto.29

Q. When must the opposition to the motion for suspension of the collection of
the tax be filed?

A. The opposition to the motion to suspend the collection of tax must be filed
within five (5) days after receipt of a copy of the motion or within a shorter period
fixed by the CTA considering the urgency of the motion.

3. Procedure in Criminal Cases

Codal Reference: Rule 9, Revised Rules of the Court of Tax Appeals

a. Institution and Prosecution of criminal actions

Q. How are criminal actions instituted?

A. All criminal actions before the CTA in Division in the exercise of its
original jurisdiction shall be instituted by the filing of an information in the name
of the People of the Philippines. For violations of the National Internal Revenue

28
Rule 10, Section 2 and 3
29
Rule 10, Section 4
JUDICIAL REMEDIES 17

Code and other laws enforced by the BIR, the Commissioner of Internal Revenue
must approve the filing. For violations of the Tariff and Customs Code and other
laws enforced by the Bureau of Customs, the Commissioner of Customs must
approve their filing.30

Q. Does the institution of the criminal action interrupt the running of the
prescriptive period?

A. Yes. The institution of the criminal action shall interrupt the running of the
period of prescription.31

Q. Who shall prosecute the criminal action?

A. All criminal actions shall be conduced and prosecuted under the direction
and control of the public prosecutor. For violations of the National Internal
Revenue Code and other laws enforced by the Bureau of Internal Revenue
and violations of the Tariff and Customs Code and other laws enforced by the
Bureau of Customs, the prosecution may be conducted by their respective
duly deputized legal officers.

i. Institution of the civil action in the criminal action

Q. Is the civil action deemed instituted with the criminal action?

A. Yes. The criminal action and corresponding civil action for the recovery of
civil liability for taxes and penalties shall be deemed jointly instituted in the
same proceeding. The filing of the criminal action shall necessarily carry with
it the filing of the civil action. No right to reserve the filing of such civil action
separately from the criminal action shall be allowed.32

b. Arrest

NOTE: Section 1 of Rule 113 of the Rules of Court defines “arrest” as the taking of a person
into custody in order that he may be bound to answer for the commission of an offense.

30
Rule 9, Section 2
31
Id.
32 Rule 9, Section 11
JUDICIAL REMEDIES 18

Q. When should probable cause for the issuance of a warrant of arrest be

determined?

A. The Court of Tax Appeals in Division to which the case was raffled shall
evaluate the resolution of the public prosecutor and its supporting evidence
within ten (10) days from the filing of the information. The Court of Tax Appeals
in Division may immediately dismiss the case if it finds that the evidence on
record clearly fails to establish probable cause. If the Court of Tax Appeals in
Division finds probable cause, it shall issue a warrant of arrest signed by the
Chairman of the Division. If there is doubt as to the existence of probable cause,
the Court of Tax Appeals in Division may order the prosecutor to present
additional evidence, ex parte, within five (5) days from notice.33

c. Search and Seizure

NOTE: Section 1 of Rule 126 of the Rules of Court defines “search warrant” as an order in
writing issued in the name of the People of the Philippines, signed by the judge and directed
to a peace officer, commanding him to search for personal property described herein and
bring it before the court.

Q. When may search warrants be issued?

A. The Court of Tax Appeals may issue a search warrant signed by its Chairman
following the requirements of Rule 126 of the Rules of Court.34 Section 4 of Rule
126 provides that a search warrant shall not be issued except upon probable
cause in connection with one specific offense to be determined personally by the
judge after examination under oath or affirmation of the complainant and the
witnesses he may produce, and particularly describing the place to be searched
and the things to be seizued which may be anywhere in the Philippines.

c. Bail

NOTE: Section 1 of Rule 114 of the Rules of Court defines “bail” as the security given for the
release of a person in custody of the law, furnished by him or a bondsman, to guarantee his
appearance before any court as required under the conditions specified.

33
Rule 9, Section 5.
34
Section 5, Rule 9
JUDICIAL REMEDIES 19

Q. Where is the bail filed and who fixes the amount of the bail and approves the
same?

A. Generally, the bail is filed with the Court of Tax Appeals and the amount of
the bail shall be fixed and approved by the Court of Tax Appeals in Division to
which the case is raffled. However, where the accused is arrested, detained, or
otherwise placed in custody outside Metro Manila, the bail may be filed with any
regional trial court judge of the place where the arrest is made and such regional
trial court judge shall fix the amount of the bail and approve the same. The judge
who accepted the bail and released the accused shall inform the Court of Tax
Appeals in Division that issued the order of arrest of his action and forward the
papers relative to the case.35

Q. Where are the conditions of the bail?

A. The conditions of the bail are:

(1) That the accused shall appear and answer the complaint or information
in the Court of Tax Appeals in Division to which it is raffled or transferred
for trial and submit himself its order and processes;
(2) That the accused, if convicted and the case is appealed to the Court of
Tax Appeals En Banc or to the Supreme court, surrender himself for the
execution of such judgment as the Court of Tax Appeals En Banc or the
Supreme Court may render.
(3) That the accused, in the event the case is to be tried anew or remained for
a new trial, shall appear before the Court of Tax Appeals in Division to
which it may be remanded and submit himself to its orders and
processes.36

NOTE: The failure of an accused to appear before the Court whenever required is a
violation of the conditions of the bail. The consequence of such failure is the issuance of
what is called a "bench warrant." The legal basis is Section 9, Rule 71 of the Rules of
Court, which states that "When a respondent released on bail fails to appear on the day
fixed for the hearing, the court may issue another order of arrest or may order the bond
for his appearance to be forfeited and confiscated, or both..." Jurisprudence dictates that
the primary requisite before a bench warrant shall be issued is that the absent-party was
duly informed of the hearing date but unjustifiably failed to attend so. Hence, if the

35
Section 7, Rule 9
36
Rule 9, Section 7.
JUDICIAL REMEDIES 20

accused did not appear before the Court whenever required and no satisfactory reasons
where offered, a bench warrant may be issued and the bond may be cancelled.

d. Appeal and period to appeal

Codal Reference: Section 9, Rule 9, Revised Rules of Court of Tax Appeals

Q. What are the modes and period of appeal with respect to criminal cases?

A. The following are the different modes and periods of appeal in the CTA for
criminal cases:

(1) A notice of appeal pursuant to Sections 3(a) and 6 of Rule 122 of the Rules
of Court with the CTA in Division with respect to an appeal from criminal
cases decided by the Regional Trial Courts in the exercise of their original
jurisdiction;

The notice of appeal shall be filed within 15 days from receipt of a copy of
the decision or final order appealed from.

(2) An appeal via a petition for review under Rule 43 of the Rules of Court
with the CTA En Banc with respect to criminal cases decided by:

(a) The Court in Division in the exercise of its original jurisdiction;

(b) The Regional Trial Courts in the exercise of their appellate
jurisdiction.

The petition for review shall be filed within 15 days from receipt of a copy
of the decision or final order appealed from. The Court may, for good
cause, extend the time for filing of the petition for review for an additional
period not exceeding fifteen days.

Q. A was criminally charged in the Court of Tax Appeals for filing a fraudulent
income tax return. Thereafter, A filed a motion to quash in the CTA First
Division. The motion to quash was denied. A filed a motion for
reconsideration, which was also denied. A then filed a petition for review with
the Court of Tax Appeals en banc. The Court dismissed the petition for review
on the ground that the denial of the motion to quash was an interlocutory
JUDICIAL REMEDIES 21

order, and therefore, unappealable. Was the dismissal by Court of Tax

Appeals en banc proper?

A. Yes. In Judy Anne Santos v. People,37 the Supreme Court held that the Court
of Tax Appeals en banc did not err in dismissing the petition for review. The
taxpayer cannot file a petition for review with the Court of Tax Appeals en
banc to appeal the Resolution of the CTA First Division denying her Motion
to Quash. The Resolution is interlocutory and, thus, unappealable.

NOTE: Following City of Manila v. Hon. Grecia-Cuerdo,38 where the Supreme Court ruled
that the Court of Tax Appeals may issue writs of certiorari in the exercise of its appellate
jurisdiction, the proper remedy would have been a special civil action for certiorari under
Rule 65 to be filed with the Court of Tax Appeals En Banc.

i. Solicitor General as counsel for the People and Government Officials sued in
their official capacity.

Q. Who shall act as a representative of the People and the Government in cases
brought to the Court of Tax Appeals in the exercise of its appellate
jurisdiction?

A. The Solicitor General shall represent the People and government officials
sued in their official capacity in all cases brought to the CTA in the exercise
of its appellate jurisdiction. He 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 of Customs in cases brought under the Tariff and
Customs Code of the Philippines or other laws enforced by the Bureau of
Customs, to appear on behalf of the officials of said agencies sued in their
official capacity. Such duly deputized officers shall remain at all times under
the direct control and supervision of the Solicitor General.39

4. Pre-Trial

Codal Reference: Rule 11, Revised Rules of Court of Tax Appeals

37
G.R. No. 173176, August 26, 2008.
38
G.R. No. 175723, February 4, 2014.
39 Rule 9, Section 10.
JUDICIAL REMEDIES 22

Q. What is the procedure for pre-trial in civil cases?

A. Section 5 of Rule 11 of the Revised Rules of the Court of Tax Appeals

provides that the parties shall submit, at least three days before the pre-trial, their
respective pre-trial briefs containing the following:

(1) A statement of their willingness to compromise the civil liability indicating

its desired terms, except that the case shall not be subject to referral to
mediation, arbitration or other mode of alternative dispute resolution;
(2) A summary of admitted facts and proposed stipulation of facts;
(3) The issues to be tried or resolved;
(4) The documents or exhibits to be presented, stating their purpose. No
evidence shall be allowed to be presented and offered during the trial in
support of a party’s evidence-in-chief other than those that had been pre-
marked and identified, unless allowed by the Court to prevent manifest
injustice;
(5) A manifestation of their having availed themselves of discovery procedures
or referral to commissioners; and
(6) The numbers and names of the witnesses, the substance of their
testimonies and the approximate number of hours that will be required by
the parties for the presentation of their respective witnesses.

Pursuant to AM No. 12-8-8-SC or the Judicial Affidavit Rule, the parties shall
also file with the court and serve on the adverse party, personally or by
licensed courier service, not later than five days before pre-trial or preliminary
conference or the scheduled hearing with respect to motions and incidents,
the following:

(1) The judicial affidavits of their witnesses, which shall take the place of such
witnesses' direct testimonies; and
(2) The parties' documentary or object evidence, if any, which shall be
attached to the judicial affidavits.40

Q. What is the consequence of failure to appear at the pre-trial?

A. Following Section 5 of Rule 18 of the Rules of Court, the failure of the

petitioner to appear at the pre-trial shall be cause for dismissal of the action. The

40
Section 2, AM No. 12-8-8-SC.
JUDICIAL REMEDIES 23

dismissal shall be with prejudice, unless otherwise ordered by the Court. The
failure of the respondent to appear at the pre-trial shall be cause to allow the
petitioner to present his evidence ex parte and the court to render judgment on
the basis thereof.

Q. What is the consequence of failure to file the pre-trial brief?

A. The consequence on the party at fault shall be the same as the effect of
failure to appear. Failure to file the pre-trial brief or to comply with its required
contents shall have the same effect as failure to appear at the pre-trial.41

Q. What is the consequence of failure to file the judicial affidavits on time?

A. A party who fails to submit the required judicial affidavits and exhibits on
time shall be deemed to have waived their submission. However, the court may
allow only once the late submission of the same provided, the delay is for a valid
reason, would not unduly prejudice the opposing party, and the defaulting party
pays a fine of not less than P 1,000.00 nor more than P 5,000.00 at the discretion
of the court.42

Q. What is the procedure for pre-trial in criminal cases?

A. Section 6 of Rule 11 of the Revised Rules of the Court of Tax Appeals

provides that before the pre-trial conference, the Court may issue an order
referring the case to the Clerk of Court for a preliminary conference of the parties
at least three days prior to the pre-trial:

(1) To mark the documents or exhibits to be presented by the parties and

copies to be attached to the records after comparison;
(2) To consider other matters as may aid in its disposition; and
(3) To inform the parties that no evidence shall be allowed to be presented
and offered during the trial other than those identified and marked during
the pre-trial unless allowed by the Court to prevent manifest injustice.

During the said preliminary conference, the Clerk of Court shall:

41
Section 5, Rule 11
42
Section 10, AM No. 12-8-8-SC
JUDICIAL REMEDIES 24

(1) Mark the documents to be presented as exhibits and copies attached to

the records after comparison;
(2) Ascertain from the parties the undisputed facts and admission on the
genuineness and due execution of documents marked as exhibits; and
(3) Consider such other matters as may aid in the prompt disposition of the
case.

The Court at the pre-trial conference shall consider the following:

(1) Stipulation of facts and issues raised;

(2) Marking for identification of evidence of the parties;
(3) Waiver of objections to admissibility of evidence;
(4) Modification of order of trial; and
(5) Such matters as will promote a fair and expeditious trial of the criminal
and civil aspects of the case.

All agreements or admissions made or entered during the pre-trial conference

shall be in writing and signed by the accused and counsel; otherwise, they
cannot be used in evidence against the accused. The agreements shall be
subject to the approval of the Court.

Q. What is the consequence of failure to appear at the pre-trial?

A. The Court may impose appropriate sanctions or penalties on the accused

or counsel or the prosecutor who does not appear at the pre-trial conference and
does not offer an acceptable excuse for his absence and lack of cooperation.43

5. Trial

Codal Reference: Rule 12, Revised Rules of the Court of Tax Appeals

a. Taking of Evidence

Q. When may the Court of Tax Appeals receive evidence?

A. The Court may receive evidence in the following cases:

43
Rule 11, Section 6
JUDICIAL REMEDIES 25

(1) In all cases falling within the original jurisdiction of the Court of Tax
Appeals in Division pursuant to Section 3, Rule 4 of the Revised Rules of
the Court of Tax Appeals;
(2) In appeals in both civil and criminal cases where the Court grants a new
trial pursuant to Section 2, Rule 53 and Section 12, Rule 124 of the Rules
of Court.

Q. May a justice of the Court of Tax Appeals take evidence?

A. Yes. The Court may, motu proprio or upon proper motion, direct that a case,
or any issue therein be assigned to one of its members for the taking of
evidence when:

(1) The determination of a question of fact arises at any stage of the

proceedings; or
(2) The taking of an account is necessary; or
(3) The determination of an issue of fact requires the examination of a long
account.44

Q. May the officials of the Court of Tax Appeals be authorized to take evidence?

A. Yes. The Court may delegate the reception of evidence to the the Clerk of
Court, the Division Clerks of Court, their assistants who are members of the
Philippine bar or any court attorney for the sole purpose of marking, comparison
with the original, and identification by witnesses of the such documentary
evidence in:

(1) Default or ex parte hearings; or

(2) In any case where the parties agree in writing.

6. Trial by Commissioner

Codal Reference: Section 5, Rule 12 and Rule 13 of the Revised Rules of Court of
Tax Appeals

44
Rule 12, section 3
JUDICIAL REMEDIES 26

Q. If a party desires to present voluminous documents and long accounts, may

such party refer such voluminous documents or long accounts to an
independent Certified Public Accountant?

A. Yes. A party desiring to present voluminous documents in evidence before

the Court may secure the services of an independent certified public accountant
at its own expense.45 The reference of the voluminous documents to the
independent certified public account must be upon motion and approval by the
Court.46 If the motion is granted, the Court shall commission said independent
certified public accountant as an officer of the Court solely for the purpose of
performing such audit functions as the Court may direct. 47

Q. What are the duties of the independent certified public accountant?

A. The independent CPA shall perform audit functions in accordance with

the generally accepted accounting principles, rules and regulations, which shall
include:

(1) Examination and verification of receipts, invoices, vouchers and other

long accounts;
(2) Reproduction of, and comparison of such reproduction with, and
certification that the same are faithful copies of original documents, and
pre-marking of documentary exhibits consisting of voluminous
documents;
(3) Preparation of schedules or summaries containing a chronological listing
of the numbers, dates and amounts covered by receipts or invoices or
other relevant documents and the amount(s) of taxes paid;
(4) Making findings as to compliance with substantiation requirements under
pertinent tax laws, regulations and jurisprudence;
(5) Submission of a formal report with certification of authenticity and
veracity of findings and conclusions in the performance of the audit;
(6) Testifying on such formal report; and
(7) Performing such other functions as the Court may direct.48

45
Section 1, Rule 13
46
Section 5, Rule 12
47 Section 1, Rule 13
48 Rule 13, section 2
JUDICIAL REMEDIES 27

Q. Are the findings of the independent certified public accountant binding upon
the Court of Tax Appeals?

A. No. The findings and conclusions of the independent CPA may be

challenged by the parties and shall not be conclusive upon the Court, which may,
in whole or in part, adopt such findings and conclusions subject to verification.49

7. Judgment, its Entry and Execution

Q. How should the judgment be rendered?

A. The Court shall decide the cases brought before it in accordance with
Section 15(1) of Article VIII of the 1987 Constitution, which provides that all
cases or matters must be decided or resolved, unless reduced by the Supreme
Court, within twelve (12) months from date of submission for all lower collegiate
courts. The conclusions of the Court shall be reached in consultation by the
Members on the merits of the case before its assignment to a Member for the
writing of the decision. The presiding justice or chairman of the Court of Tax
Appeals in Division shall include the case in an agenda for a meeting of the Court
of Tax Appeals en banc or the Court of Tax Appeals in Division, as the case may
be, for its deliberation. If a majority of the justices of the Court of Tax Appeals
en banc or Court of Tax Appeals in Division agree on the draft decision, the
ponente shall finalize the decision for the signature of the concurring justices and
its immediate promulgation. Any justice of the Court of Tax Appeals en banc or
Court of Tax Appeals in Division may submit a separate written concurring or
dissenting opinion within twenty days from the date of the voting on the case.
The concurring and dissenting opinions, together with the majority opinion, shall
be jointly promulgated and attached to the rollo. In deciding the case, the Court
may not limit itself to the issues stipulated by the parties but may also rule upon
related issues necessary to achieve an orderly disposition of the case.50

Q. What is the form of the decision of the Court of Tax Appeals?

A. Every decision or final resolution of the Court of Tax Appeals shall be in

writing, stating clearly and distinctly the findings of fact and the conclusions of
law on which it is based, and signed by the justices concurring therein. Such

49
Rule 13, section 3
50
Rule 14, Section 1
JUDICIAL REMEDIES 28

findings and conclusions shall be contained in the decision or final resolution

itself. However, in appealed cases, the Court of Tax Appeals may adopt by
reference the findings and conclusions set forth in the decision, order or
resolution appealed from. Every decision of the Court of Tax Appeals shall be
accompanied by a certification signed by the presiding justice or acting presiding
justice, chairman or most senior member as acting chairman of the Court of Tax
Appeals en banc or Court of Tax Appeals in Division to the effect that the
conclusions in the decision were reached in consultation before the case was
assigned to the writer of the opinion of the Court.51

Q. What is an Amended Decision?

A. An amended decision refers to any action modifying or reversing a

decision of the Court en banc or in Division.52

NOTE: It must be noted that a second motion for reconsideration is a prohibited pleading
under Section 7, Rule 15 of the Revised Rules of the Court of Tax Appeals. Is a motion for
reconsideration filed on an amended decision a second motion for reconsideration? This has
not yet been settled by the Supreme Court. A perusal of Court of Tax Appeals jurisprudence,
however, indicates that it would depend on whether the amended decision modified or
reversed the original decision. In Mirant (Navotas II) Corporation v. Commissioner of Internal
Revenue,53 the Court of Tax Appeals ruled that the motion for Reconsideration of the
amended decision is not a second motion for reconsideration proscribed in Section 7 Rule 15
of the Revised Rules of the Court of Tax Appeals. In the said case, the amended and clarified
decision was an entirely new decision, which superseded the original decision. The alteration
in the amended decision is so significant and substantial as to give rise to the corresponding
right of the party to assail it through a motion for reconsideration. In Commissioner of Internal
Revenue v. Mindanao II Geothermal Partnership,54 the Court of Tax Appeals held that the
motion for Reconsideration of the amended decision is a second motion for reconsideration
proscribed in Section 7, Rule 15 of the Revised Rules of the Court of Tax Appeals. In the said
case, the amended decision did not totally vacate nor supersede the original decision. In fact,
the dispositive portion in the said amended decision clearly stated that it merely “modified”
the original decision.

Q. What is a Resolution?

A. A “resolution” refers to any disposition of the CTA en banc or CTA in

51
Rule 14, Section 2
52
Rule 14, Section 3.
53 CTA EB Case No. 783, July 18, 2012.
54 CTA EB No. 610, November 2, 2010.
JUDICIAL REMEDIES 29

Division other than on the merits.55

Q. How is the decision and resolution of the Court of Tax Appeals in civil cases
promulgated?

A. Promulgation consists of the filing of the decision or resolution with the

Clerk of Court or Division Clerk of Court, who shall forthwith annotate the date
and time of receipt and attest to it by his signature thereon. He shall serve notice
of such decision or resolution upon the parties or their counsel, furnishing them
with certified true copies thereof.56

Q. How is the decision and resolution of the Court of Tax Appeals in criminal
cases promulgated?

A. In criminal cases originally filed with and decided by the Court in Division,
the chairman shall cause the decision or resolution to be filed with the Division
Clerk of Court in a sealed envelope, who shall schedule its promulgation, giving
notice to the prosecution, the accused personally or through his bondsman or
warden, and counsel requiring their presence at the promulgation. 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 accused
and a justice of the Division that rendered the same. If the accused is detained,
the warden shall produce him before the Court. However, if he is detained
outside Metro Manila, the Court may authorize the executive judge of the
Regional Trial Court having territorial jurisdiction over the place of detention to
promulgate the decision or resolution at such place.57

Q. How is the judgment and final resolution entered?

A. If no appeal or motion for reconsideration or new trial is filed within the

time provided in these Rules, the Clerk of Court shall forthwith enter the
judgment or final resolution in the book of judgment. The date when the
judgment or final resolution becomes executory shall be deemed the date of its
entry. The entry shall contain the dispositive part of the judgment or final
resolution and shall be signed by the Clerk of Court, with a certification that such
55
Rule 14, Section 4
56
Rule 14, Section 5
57 Id.
JUDICIAL REMEDIES 30

judgment or resolution has become final and executory.58

Q. When is execution a matter of right?

A. Execution shall issue as a matter of right on motion, upon the expiration

of the period to appeal from a judgment or order that disposes of the action or
proceeding and no appeal has been duly perfected.59

Q. When is execution discretionary?

A. Execution shall be discretionary if an appeal has been duly perfected and

finally resolved. The execution may be applied for in the court of origin, on
motion of the judgment oblige, submitting therewith a certified true copy of the
judgment or final order sought to be enforced and of its entry, with notice to the
adverse party.60

8. Motion for Reconsideration or New Trial

CODAL REFERENCE: Rule 15, RRCTA.

Q. Who may file a motion for reconsideration or new trial?

A. Any aggrieved party may seek a reconsideration or new trial of any decision,
resolution or order of the court.61

Q. When should the motion for reconsideration or new trial be filed?

A. The motion for reconsideration or new trial shall be filed within fifteen (15)
days from the date he received notice of the decision, resolution, or order of
the Court in question.62

Q. When should the opposition to the motion for reconsideration or new trial be
filed?

58
Rule 14, Section 6
59
Rule 14, Section 7
60 Id.
61 RRCTA, Rule 15, Section 1.
62 Id.
JUDICIAL REMEDIES 31

A. The adverse party may file an opposition to the motion for reconsideration
or new trial within ten (10) days after his receipt of a copy of the motion for
reconsideration or new trial of a decision, resolution, or order of the Court.63

Q. What is the effect of the filing of the motion for reconsideration or new trial?

A. The filing of a motion for reconsideration or new trial shall suspend the
running of the period within which an appeal may be perfected.64

Q. What is the effect of the filing of the motion for reconsideration or new trial?

A. The filing of a motion for reconsideration or new trial shall suspend the
running of the period within which an appeal may be perfected.65

Q. What are the grounds for the filing of a motion for reconsideration?

A. Following Section 1, Rule 37 of the Rules of Court, the aggrieved party may
move for reconsideration upon the grounds that:

(1) That the evidence is insufficient ot justify the decision or final order; or
(2) That the decision or final order is contrary to law.

Q. What are the grounds for the filing of a motion for new trial?

A. A motion for new trial may be based on one or more of the following grounds:

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

prudence could not have guarded against and by reason of which such
aggrieved party has probably been impaired in his rights; or
(2) Newly discovered evidence which he could not, with reasonable diligence,
have discovered and produced at the trial and which, if presented, would
probably alter the result

All available grounds should be included in the motion for new trial.
Otherwise, they shall be deemed waived.66
63
RRCTA, Rule 15, Section 2.
64
RRCTA, Rule 15, Section 4.
65 RRCTA, Rule 15, Section 4.
66 RRCTA, Rule 15, Section 5
JUDICIAL REMEDIES 32

Q. What are the contents of the motion for reconsideration or new trial?

A. The motion shall be in writing stating its grounds, a written notice of which
shall be served by the movant on the adverse party. A motion for new trial
shall be proved in the manner provided for proof of motions.

A motion for new trial on the basis of fraud, accident, mistake or excusable
negligence shall be supported by affidavits of merits which may be rebutted
by counter-affidavits.

A motion for new trial on the basis of newly discovered evidence shall be
supported by affidavits of the witnesses by whom such evidence is expected
to be given, or by duly authenticated documents which are proposed to be
introduced in evidence.67

Q. What if the motion does not comply with the prescribed form?

A. A motion for reconsideration or new trial that does not comply with the
prescribed form shall be deemed pro forma, which shall not toll the reglementary
period for appeal.68

Q. Is a second motion for reconsideration or new trial allowed?

A. No. A second motion for reconsideration is a prohibited pleading.69

9. Appeal to the Court of Tax Appeals En Banc

Codal Reference: Section 18, RA 1125, as amended by RA 9282.

Q. Who may file an appeal with the CTA en banc?

A. The following may file an appeal via a petition for review as provided in Rule
43 of the Rules of Court with the Court of Tax Appeals en banc:

67
RRCTA, Rule 15, Section 6.
68
Id.
69 RRCTA, Rule 15, Section 7.
JUDICIAL REMEDIES 33

In civil cases –

(1) A party adversely affected by a resolution of a Court of Tax Appeals in

Division on a motion for reconsideration or new trial;
(2) A party adversely affected by a decision or ruling of the Central Board of
Assessment Appeals or the Regional Trial Courts in the exercise of their
appellate jurisdiction.70

In criminal cases –

(1) In criminal cases decided by the Court in Division;

(2) In criminal cases decided by the Regional Trial Courts in the exercise of
their appellate jurisdiction.71

Q. May a decision or order of the Court of Tax Appeals in Division be

immediately appealed to the Court of Tax Appeals En Banc?

A. No. In all cases falling under the exclusive appellate jurisdiction of the
Court of Tax Appeals En Banc, the petition for review of a decision or resolution
of the Court in Division must be preceded by the filing of a timely motion for
reconsideration or new trial with the Division.72

In Commissioner of Customs v. Marina Sales, Inc.,73 the Supreme Court opined

that Section 1, Rule 8 of the Revised Rules of the Court of Tax Appeals is
mandatory. Hence, before the Court of Tax Appeals En Banc could take
cognizance of a petition for review concerning a case falling under its exclusive
appellate jurisdiction, the litigant must sufficiently show that it sought prior
reconsideration or moved for a new trial with the concerned Court of Tax
Appeals in division.

10. Petition for Review on Certiorari to the Supreme Court

CODAL REFERENCE: Section 19, RA 1125, as amended by RA 9282 and Section 1, Rule 16,
RRCTA

70
RRCTA, Rule 8, Section 4.
71
RRCTA, Rule 9, Section 9.
72 RRCTA, Rule 8, Section 1.
73 G.R. No. 183868, November 22, 2010.
JUDICIAL REMEDIES 34

Q. Who may file an appeal to the Supreme Court?

A. Any party adversely affected by a decision or ruling of the Court of Tax

Appeals en banc may appeal to the Supreme Court.74

Q. What is the mode and period of appeal from the CTA en banc to the Supreme
Court?

A. The party adversely affected by the decision or ruling of the CTA en banc may
appeal thereform by filing with the Supreme Court a verified petition for
review on certiorari under Rule 45 of the Rules Court.

The petition for review shall be filed within fifteen days from:

(1) receipt of a copy of the decision or resolution;

(2) receipt of a copy of the resolution denying the motion for reconsideration
or for new trial, if such party has filed a motion for reconsideration or for
new trial. 75

NOTE: Section 2, Rule 45 of the Rules of Court provides that on motion duly filed and
served, with fully payment of the docket and other lawful fees and the deposit for consts
before the expiration of the reglementary period, the Supreme Court may for justifiable
reasons grant an extension of thirty (30) days only within which to file the petition.

Q. What is the effect of the appeal on a pending motion for reconsideration or

for new trial with the CTA en banc?

A. The motion for reconsideration or for new trial filed before the CTA en banc
shall be deemed abandoned, if during its pendency, the movant shall appeal to
the Supreme Court. 76

C. Taxpayer’s suit impugning the validity of tax measures or acts of taxing

authorities

Q. What is a taxpayer’s suit?

74
Section 1, Rule 16
75
Section 2, Rule 16
76 Id.
JUDICIAL REMEDIES 35

A. A taxpayer’s suit refers to a case where the act complained of directly involves
the illegal disbursement of public funds derived from taxation.77 A taxpayer
is allowed to sue where there is a claim that public funds are illegally
disbursed, or that the public money is being deflected to any improper
purpose, or that there is wastage of public funds through the enforcement of
an invalid or unconstitutional law.78

Q. What are the requisites of a taxpayer’s suit? (for taxpayer’s to have locus
standi to sue)

A. For a taxpayer’s suit to prosper, two requisites must be met, namely:

(1) Public funds derived from taxation are disbursed by a political

subdivision or instrumentality and in doing so, a law is violated or some
irregularity is committed; and
(2) The Petitioner is directly affected by the alleged act.79

Hence, in Lozada v. COMELEC,80 it was held that the action for mandamus
to compel the COMELEC to hold a special election is not considered a
taxpayer’s suit because it does not involve public expenditure. In Joya v.
PCGG,81 it was likewise held that an action to enjoin the PCGG from
proceeding with the auction sale of paintings and antique silverware was not
a taxpayer’s suit as the case did not involve a misapplication of funds. The
paintings and antique silverware alleged to have been public properties were
acquired from private sources and not with public money.

Q. Must a taxpayer be a party to a government contract so that it can challenge

the validity of a disbursement of public funds?

A. No. The prevailing doctrine in taxpayer’s suit is to allow taxpayers to question

contracts entered into by the national government or GOCCs allegedly in

77
Bayan v. Zamora, G.R. No. 138570, October 10, 2000.
78 Remulla vs. Maliksi, G.R. No. 171633, September 11, 2013; Mamba v. Lara, G.R. No. 165109,
December 14, 2009; Constantino, Jr. v. Cuisia, G.R. No. 106064, October 13, 2005.
79 Land Bank of the Philippines v. Cacayuran, G.R. No. 191667, April 17, 2013; Mamba v. Lara, G.R.

No. 165109, December 14, 2009; Bagatsing v. San Juan, G.R. No. 97787, August 1, 1996.
80 G.R. No. L-59068, January 27, 1983.
81 G.R. No. 96541, August 24, 1993.
JUDICIAL REMEDIES 36

contravention of law. A taxpayer need not be a party to the contract to

challenge its validity.82

82
Abaya v. Ebdane, G.R. No. 167919, February 14, 2007; Jumamil v. Cafe, G.R. No. 144570,
September 1, 2005.