Tax II Report

8/20/2019 Tax II Report

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THE COURT OF TAX APPEALS

By

Jethro J. Villaruel

LLB 4


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NATURE OF THE COURT OF TAX APPEALS

• The Court of Tax Appeals is a highly specialized body

created for the purpose of reviewing tax cases (CIR v.General oods (!hils"# Inc. # G.R $o. %&')*# April **++'".

• A Court of special or li,ited -urisdiction and as such# it

can only tae cognizance as that ,atters that areclearly within its -urisdiction (/er 0 Co.# 1td. 2. CTA# G.R$o. 13%*'4# 5anuary '%# %4*".

• The proceedings are technical of nature although the

CTA is not bound by the technical rules of evidence (R.A%%*6 as a,ended# 7ec. 8".

• !roceedings are governed by the Revised Rules of Courtof Tax Appeals (RRCTA"3 A.9 $o. +63%%3+)3CTA whichtoo e:ect on ;ece,ber %6# *++6. The Rules of Courtapply only suppletorily .


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LEGAL BASES

The creation and the operation of the Court of TaxAppeals is based on the following legal bases<

• The Court of Tax Appeals was created by thevirtue of RA %%*6 enacted in 5une %# %46&.

• R.A 4*8* a,ended R.A %%*6. R.A 4*8* wasenacted in 9arch '+# *++& and too e:ect onApril *'# *++&.

• R.A 46+' which was enacted on 5une %*# *++8

further a,ended R.A %%*6.


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AMENDMENTS OF R.A9503

•R.A 46+' enlarged the organizationalstructure of the Court of Tax Appeals by<

Increasing the nu,ber of CTA -ustices fro,

to 4 as e,bodied in 7ection % of the said

Republic Act.

Increasing the nu,ber of division fro, * tothree each division constituting of three

-ustices (7ection %".


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. To ad,inister ?aths (R. A %%*6# asa,ended 7ec %+".

). To pro,ulgate Rules and Regylation forthe conduct of its business (R.A %%*6# asa,ended# 7ec. 8".

8. To receive @vidence (RRCTA# Rule %*#7ec. *".

4. To assess da,ages against appellant ifappeals to the CTA appears to befrivolous or dilatory (R. A %%*6# asa,ended# 7ec. %".

%+. To render decisions on cases brought


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!ower to issue writs ofprohibition and in-unctions

is supple,entary to itsappellate -urisdiction.


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COMPOSITION ANDAPPOINTMENT OF MEMBERS

%. Consist of !residing 5ustice and 8Associate 5ustices appointed by

the !resident upon the no,inationof the 5udicial and ar Council.

*. It ,ay sit en banc or in three

divisions# each division consists ofthree -ustices.

'. The !residing 5udge and the two7enior Associate 5ustices shall

serve as the Chairpersons of the


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En Bn!" To reverse the decision of the ;ivisions#the presence at the deliberation and aBr,ativevote of ve ,e,bers is necessary. ut only asi,ple ,a-ority of the -ustices present is neededto pro,ulgate a resolution or decision in all othercases (R.A 46+'# 7ec. *".

D#$#%#&n" Dhen the re>uired >uoru, cannot beconstituted# due to any vacancy# dis>ualication#inhibition# disability or any other lawful causes#

the !residing -ustice shall choose a -ustice to sit inthe vacant position te,porarily (R.A 46+'# 7ec.*".


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'()#%*#!+#&n &,+- C&()+ &, T/

A1%

RA 9282


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• The -urisdiction of the CTA over the sub-ect,atter can be challenged at any stage of theproceedings. And for the lac of it# The CTAcan dis,iss a case ex ,ero ,otu (on its ownfree will" (CIR v. 2illa# G.R $o. 13*'488#

5anuary *# %48".

• The CTA has -urisdiction over both civil andcri,inal aspects of a tax case. The

concentration of tax cases in one court canenhance the disposition of this cases since itwill tae the, out of the -urisdiction ofregular courts which ad,ittedly do not have

expertise in the eld of taxation


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CT EN BANC

I. E/!1(%#$ O)#4#n1 '()#%*#!+#&n RRCTA R(1 2 S!. 2

The Court shall sit en banc in the exercise of its ad,inistrative#cere,onial and ad-udicative functions.

II. EXCLUSI6E APPELATE 'URISDICTION RRCTA R(1 7 S!.2

A. D!#%#&n% &) R%&1(+#&n% &) M&+#&n% ,&) R!&n%#*)+#&n &)+- N T)#1 &, +- C&()+ #n D#$#%#&n #n +- E/)!#% &, #+%E/!1(%#$ A11+ '()#%*#!+#&n &$)" %. Cases arising fro, the ad,inistrative agencies3 IR# ?C# ;?#

;TI# ;AE*. 1ocal Tax Cases decided by the RTCs in the exercise of theiroriginal -urisdictionE and'. Tax collection cases decided by the RTCs in the exercise of theiroriginal -urisdiction involving nal and executor assess,ents for

taxes# fees charges and penalties# where the principal a,ount oftaxes and penalties clai,ed is less than % ,illion.


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B. D!#%#&n% R%&1(+#&n% &) O)*)% &, &+#&n,&) R!&n%#*)+#&n &) N T)#1 &, +- C&()+ #nD#$#%#&n #n +- E/)!#% &, #+% E/!1(%#$ O)#4#n1

:()#%*#!+#&n &$)" C)##n1 &;n%% )#%#n4 ,)&$#&1+#&n% &, +- NIRC &) TCC n* &+-) 1%*#n#%+)*

C. D!#%#&n% R%&1(+#&n% &) O)*)% &, M&+#&n%,&) R!&n%#*)+#&n &) N T)#1 &, +- C&()+ #nD#$#%#&n #n +- E/)!#% &, #+% E/!1(%#$ O)#4#n1 '()#%*#!+#&n &$)"

%. Tax Collection cases where the principal a,ount oftaxes and fees# exclusive of charges and penaltiesclai,ed is % ,illion pesos or ,ore andE*. Cri,inal o:enses arising fro, violations of the $IRC

or TCC and other laws ad,inistered by the IR or ?C


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D. D!#%#&n% R%&1(+#&n% n* O)*)% &, +- RTC%*!#** &) )%&1$*


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E.D!#%#&n% &, +- Cn+)1 B&)* &, A%%%%n+% A1% CBAA #n+- E/)!#% &, #+% A11+ '()#%*#!+#&n &$) !%% #n$&1$#n4 +-%%%%n+% n* +/+#&n &, )1 )&)+#% &)#4#n11= *!#**


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NOTE" As to which court shall exercise -urisdiction#the rules on -urisdiction in cri,inal cases shall befollowed.

The -urisdiction of the CTA in this cases shall beappellate (R.A %%*6# 7ec ) bH%H as a,ended".

INCLUSION OF CI6IL ACTION IN CRIMINALACTION

The cri,inal action and the corresponding civilaction for the recovery of the civil liability for taxesand penalty shall be dee,ed -ointly instituted inthe sa,e proceeding. $o right to reserve the lingof such civil action separately fro, the cri,inal

action shall be allowed or recognized.


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B. T/ C&11!+#&n C%%

Those involving final and executory assessments fortaxes, fees, charges and penalties, where the principal

amount of taxes and fees, exclusive of charges and

penalties claimed is 1 million pesos or more (!T",

ule #, $ec 3, %c&%1&'

!ollection cases where the principal amount of taxes

and fees exclusive of charges and penalties claimed is

less than 1 million shall )e tried )y the proper *T!,

*eT!, or T!, depending on their respective +urisdiction The +urisdiction of the !T" in thsese cases

shall )e appellate (" 112, $ec - %)&%1&'


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'' )x&lus%*e Apellate $ur%sd%&t%on (RRCTA, Rule +, e&s -a., -/.-2., -&.-2.!

A 0e&%s%ons of or 'na&t%on /1 the omm%ss%oner

of 'nternal Re*enue #here the N'R pro*%des a

pe&%f%& "er%od of A&t%on (*%a pet%t%on for re*%e

# under rule +2 of the Rules of ourt!

'n &ases %n*ol*%ng d%sputed assessments, re

funds or 'nternal re*enue taxes, fees or other

&harges, penalt%es %n relat%on thereto3 or

2 4ther matters ar%s%ng under the N'R or ot

her la#s adm%n%stered /1 the B'R

• e erm o er ma ers s m e on 1 1 e 7u


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• e erm o er ma ers s m e on 1 1 e 7ual%f1%ng phrase that follo#s %t the appellate ur%sd%&t%on of the CTA %s not l%m%ted to &ases to #h%&h %n*ol*es d%*%s%ons of the C'R on matters relat%ng to assessements or refunds 't &o*ers other &ases that

ar%se out of the N'RC or related la#s adm%n%stered/1 the B'R

• The %ssue of #hether or not B'R has the r%ght to &olle&t taxes had alread1 pres&r%/ed %s the su/e&t matter fall%ng under N'RC 'n &onne&t%on there#%th,the N'RC states that the &olle&t%on of taxes %s oneof the dut%es of B'R Thus, from the forego%ng, the%ssue of pres&r%pt%on of the B'Rs r%ght to &olle&t taxes ma1 /e &ons%dered to /e &o*ered /1 the termother matters6 o*er #h%&h the CTA has appellate

ur%sd%&t%on (Comm%ss%oner of 'nternal re*enue *:am/re&ht ;


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NOTE" The Inaction of the CIR within the %8+3day period under 7ection **8 of the $IRC isdee,ed denial.

B. Decisions of the Commissioner of Customs (via

petition for review under Rule 42 of the Rules of

Court)

1 .n cases involving lia)ilities for !ustoms duties, fees

or other money charges, seiures, detention or release

of there property affected, fines, forfeitures or otherpenalties in relation thereto0 or

2 ther matters arising under the !ustoms aw or

other aws administered )y the !


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C. Decisions of the Secretary of Finance on customs cases

elevated for automatic review from decisions of the !ommissioner of

!ustoms which are adverse to the government under $ec 231 of

the Tariff and !ustoms !ode (via a petition for review under ule#2'0

R!S"# F"R $% &'R&"S "F !'$"!$C R*+, To

protect the 4overnment against corrupt and conniving customs

collector

+ithout such automatic review- a collector would have that

asolute and unridled discretion to determine whether the

/oods sei0ed are dutiale or not. n situation where the

collectors decision is favorale to the ta1 payer- no appeal can

e taen in favor of the 3overnment thus- main/ the decision

final and the /overnment deprived of any protection (aoasin

v. Commissioner of Customs- 3.R #o. 54666- Decemer 22-

6757).


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D. Decision of the Secretary of $rade and ndustry in the case of the

non5agricultural product commodity or article, and the Secretary of

!/riculture in the case of agricultural product, commodity or article,

involving dumping and countervailling duties under "rticle 31 and 32,respectively of the Tariff and !ustoms !ode, and safeguard measures

under " 77 ($afeguard *easures "ct', where either parties may

appeal the decisions to impose or not to impose said duties (via petition

for eview under ule #2'

. !ppeals from the 8ud/ement- resolutions or "rders of teh R$Cs

in their "ri/inal 8urisdiction in Criminal Cases arising from violations

of the 8.! or T!! and other laws administered )y the . or !,

where the principal amount of taxs and fees, exclusive of charges and

penalties, claimed is less than 1 million or whether there is no specifiedamount claimed


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F. Decisions- Resolutions or "rders of the R$C in

9ocal $a1es Cases decided or resolved y them in

the e1ercise of their "ri/inal 8urisdiction:

3. Criminal "ffenses over &etitions for Review of the

8ud/ements- resolutions or orders of the R$C in the

e1ercise of their !ppellate 8urisdiction over tax cases

originally decided )y the *Tc or the *!T!s (" 112,

as amended, $ec - %)&%2&%)&' and0

%. !ppeals from the 8ud/ements- Resolutions- or

"rders of the R$C in the $a1 Collection Cases wherethe principal amount of taxes and fees, exclusive of

charges and penalties, claimed is less than 91million


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E6IDENCES FOR CTA

T#n4 &, E$#*n!%

The Court ,ay receive evidence in thefollowing cases<

%. In all cases falling within the original -urisdiction of the Court in division pursuantto 7ection ' Rule & of Revised rules of Courtof Tax Appeals andE

*. In appeals in both civil and cri,inal caseswhere the Court grants a new trial pursuantto 7ection * Rule 6' and 7ection %* Rule %*&

of the Rules of Court (RRCTA# Rule %*# 7ec.* .


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E6IDENCE MAY BE TAEN BY A"?. '(%+#! &, +- CTA3It ,ay be ,otu propio or upon proper ,otion when<

a" a. The deter,ination of a >uestion of fact arises atany stage of the proceedings< or

b" b. The taing of the account is necessaryEc" c. The deter,ination of the issue of fact re>uires the

deter,ination of the long account (RRCTA# Rule %*#7ec. '".

Fpon the co,pletion of the hearing the 5usticeconcerned shall sub,it to the Court a written reportthereon stating the ndings and conclusion (RRCTA#Rule %*# 7ec '".

2. C&()+ O!#1d" Cler of Courte" ;ivision of the Cler of Courtf" Their Assistants who are ,e,bers of the !hilippine

arg" Court attorney (RRCTA# Rule %*# 7ec. &".

PURPOSE" 9aing co,parison with the original and


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PURPOSE" 9aing co,parison with the original andidentication by the witnesses of the receiveddocu,entary evidences (RRCTA# Rule %*# 7ec. &".

It applies only in default or ex parte or where the parties

agree in writing. The Court oBcial shall have no power torule on ob-ections (RRCTA# Rule %*# 7ec. &".

THE CTA %-11 n&+


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N& '()#%*#!+#&n &n F#n1 n* E/!(+&)=&) Un*#%(+* A%%%%n+%

It is the ordinary courts and not the Courtof Tax Appeals can entertain ,oney clai,sbased on assess,ents that have beca,e

nal and executory (CIR v# Tulio# G.R $o.%'4868# ?ctober *6# *++6".

The taxpayer not having availed hi,self of

the re,edy (ti,ely dispute of assess,ent"to per,it the Tax Court to exercise the

-urisdiction# cannot be allowed to >uestion#by way of defense# the validity of the

assess,ent (Republic v. Abella# G. R 13


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NO '()#%*#!+#&n +& R(1 &n +-61#*#+= &, R(1 &)R4(1+#&n #%%(* uasi3legislative function (e.g. IR Ruling#;? 1etter and R9C"# the regular courts have -urisdiction to pass upon the sa,e (ritish

A,erican Tobacco v. Ca,acho# GR %'68'#August *+# *++8".


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EFFECT OF THE PERFECTIONOF APPEAL

GENERAL RULE" $o appealtaen to the Court shall suspendthe pay,ent of taxes# levy#

distraint# or sale of the propertyof the taxpayer for thesatisfaction of tax 1iability(RRCTA# Rule %+# sec %" .

REASON" 1ife3lood Theory(Angeles City v. Angeles @lectricCorp. GR $o. %%' 5une *4#*+%+ .


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W-n +& 1 +- &+#&n +& %(%n* +- C&11!+#&n &,T/" 9ay be led together with the petition for reviewor with the answer# or in a separate ,otion led by theinterested party at any stage of the proceedings (RRCTA#Rule %+# 7ec. '".

REUISITES FOR SUSPENSION OF COLLECTION OFTAX

%. There is an appeal to the CTA fro, a decision of a CIR.*. In the opinion of the CTA# the collection ,ay -eopardize

the interest of the taxpayer or the Govern,ent (RRCTA#Rule %+# 7ection *"E

'. The taxpayer ,ay be re>uired to deposit the a,ountclai,ed or le a surety bond for not double the a,ountwith the Court (R. A %%*6# 7ec %%" E

&. That the appeal is not frivolous or dilatory.6. The ,otion for the suspension of the collection of taxes

shall be veried and shall state clearly and distinctly thefacts and the ground relied upon in support of the,otion (RRCTA# Rule %+# 7ec. &".


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INSTANCES WHERE CTA HASNO 'URISDICTION

%. ?ver >uestions of unfairco,petition# involving the use ofsi,plied boo eeping records#

because this does not involve anytax assess,ents or refund (?lladav. CTA# GR $o. 1388)8# 5uly *%46" E

*. ?ver the decisions of the!hilippine !orts Authority(!hilippine !orts Authority v.uentes# G.R $o. 4%*64# April %#%44%".


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A!!@A17 T? T@

;@CI7I?$ ?

CTA


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I. WHEN" P)#&* #+-#n -#!- +& 1 A1 +& CTAA. In C#$#1 C%% A1 1* #+- +- CTA #n D#$#%#&n

%. Dithin '+ days after the receipt of the decision or rulingor after the expiration of the period xed by law for action(R.A %%*6# as a,ended# 7ec. %%".

• or the CTA to have -urisdiction# the IR Co,,issioner

,ust have render his decision# otherwise# there isnothing to review and -urisdiction would not be ac>uired(CIR v. Taasago !hilippines Incorporated# C.T.A @ $o.8'6# ?ctober %6# *+%*".

*. If the Co,,issioner or his duly authorizedrepresentative fails to act on the taxpayerJs protest within%8+ days fro, the date of the sub,ission by the taxpayer#of the re>uired docu,ents in support of his protest# thetaxpayer ,ay appeal to the CTA within '+ days fro, thelapse of the said %8+ days period# otherwise the

assess,ent shall beco,e nal# executory and


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• .n case of disputed assessments, the inaction of the

!. within the 175day period shall )e deemed denial

for the purpose of of allowing the taxpayer to appeal tothe court and does not necessarily constitute the formal

decision of the former on the tax case The taxpayer

may instead opt to await the decision of the !. of the

disputed assessement even )eyond the 175day

period .n this case, the :"8, will not final and

executory

• .f the taxpayer waits for the decision which turns out to

)e adverse to him, only then must appeal to him thesaid adverse decision to the !T" within 3 days from

the receipt thereof (!T", ule #, $ec 3 %a&%2&0

!! v !., 4 8o 167#;7,


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$hirty day &rescriptive &eriod for !ppeal with the

C$!

1 Runs from the date the ta1payer receive the

appealale decision or thirty days after the lapse of

the 65;


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$olicitor 4eneral as a !ounsel for the people and

4overnment fficials sued in their official capacities in

all cases )rought in the !T" in the exercise of its

"ppellate e may also deputied legal officers of the .(cases )rought under the 8.! and other laws

enforced )y the .' or the legal officers of the !

(cases )rought under T!! or other laws enforced )y

!', to appear in )ehalf of the officials of saidagencies in their official capacity0 9rovided, the

$olicitor general shall have direct control and

supervision at all times over them (!T", ule ;,

$ec 1'


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ffects of the Failure of the $a1payer to !ppeal on time,

a enders the decision final, executory and demanda)le0

) "ssessments is considered correct and all that is necessary is for

the !ommissioner to enforce the collection of tax )y summary

remedies or +udicial actions0

c The taxpayer is )arred in an action for the collection of tax )y thegovernment for the reopening the ?uestion already decided0

d .n the proceeding for the collection of tax )y +udicial action, the

taxpayer@s defenses are similar to those of the defendant in a case

for enforcement of +udgement )y +udicial action and0

e The assessment which has )ecome final and executory cannot )e

superseded anymore )y a new assessment (!"$"$", supra at

126151262'


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=. #on


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C. n Criminal Cases ("ppeal :iled with teh T! or !T" =n anc'

1 .n cases decided )y the Tc in the exercise of its original

+urisdiction5 )y filing a notice of appeal within 1 days from the

receipt of a copy of the decision or final order appealed from

2 .n cases decided )y the Civisionof teh !T",5 )y filing a petition for

review within 1 days from the receipt of teh copy of the decision orresolution appealed from

3 .n cases decided )y an T! in the exercise of its appellate

+urisdiction 5)y filing a petition for review within 1 days fom receipt of

a copy of the decision or final order appealed from (!T", ule ;,

$ec ;'


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otion for Reconsideration for #ew $rial

e?uests for motions for reconsideration, suspendsthe running of the period to appeal (!T", ule 1,

$ec #'

. +hat, SuAect to !ppeal• nly a final decision is appeala)le to !T" in

division (!. v 9., 4 8o 13#62, "pril 1-,2-'

• " decision is appeala)le when it constitutes the

final action taDen )y him or his authoried deputies

with respect to the taxpayer@s lia)ility


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1 9reliminary !ollection letters, post5reportings notices and

pre5assessment notices are ot appeala)le, )ecause they are

not the final decision of the !ommissioner

2 The action taDen )y the !ommissioner in response to the

taxpayer@s protest on the assessment would constitute an

appeala)le decision

3 "n exchange of communication, )etween the taxpayer and

the !ommissioner, and the latter states that the action is final,

then, period for appeal )egins to run

# !ommissioner must state that his decision is final for the

period of appeal to run


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nstances where the decisions are Final,

1 " demand letter for tax deficiency issued an signed )y an authoried su)ordinateofficer with the warning that failure to pay would result to the issuance of warrant or

distraint, and levy without further notice (ceanic Bireless 8etworD .nc v !., 4

8o 1#737, Cecem)er ;, 2'

2 " letter of . !ommissioner reiteraing previous demand to pay an assessment

(!. v "yala $ecurities !orp, 4 8o 52;#7, 8ovem)er 21, 1;7'

3 The filing of the


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>. $enor "f Finality Rule, Bhere several re?uest for reconsideration where fi

led to the !ommisoner, the appeala)le decision is that which affirms the assessment in terms which clearly indicate the finality of the action taDen )y the !ommissioner (eyes v !., !T" !ase 8o 612#,


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nstances +here C$! would have 8urisdiction ven if there is no

Decision

1 .f the !ommissioner of the .nternal evenue has not acted in a

refund case and the two5year prescriptive period is a)out to expire

• R!S"#, To )e fair with the tax payer so as not to deprive him of

his day in !ourt

2 .f the !ommissioner of !ustoms has not rendered a decision on

the application for refund of .nternal evenue Taxes and the suit is

a)out to prescri)e

• R!S"#, .f the taxpayer waits, the his right of action prescri)es

=. Bhere the !. has not acted upon a protested assessment within

one hundred eighty days from su)mission of all relevant document

supporting the protest


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#ew ssues cannot e raised for the First $ime on !ppeal

• 3#R!9 R'9, 8ew issues cannot )e raised for the first time on

appeal ( Cel osario v onga, 4 8o 13637,


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• .n the a)sence of explicit statutory provisions to the contrary, the

4overnment must follow the same ules of 9rocedures which

)ind private parties (!ommissioner v 9rocter and 4am)le, 4

8o 566737, Cecem)er 2, 1;;1, esolution'

. &RS"#S +%" C!# F9 !# !&&!9 +$% $% C$!

• $he followin/ people may !ppeal to the C$! in Division

(RRC$!- Rule 4- Sec. =),

1 The !omissioner of .nternal evenue0

2 the !ommissioner of !ustoms0

3 The !ommissioner of :inance0

# The $ecretary of Trade and .ndustry0

The $ecretary of "griculture0

6 The egional Trial !ourt

• $tocDholders or dissolved corporations could )e held personally

lia)le for the unpaid deficiency assessment of a dissolved

corporation in proportion to their distri)utive shares in the

dissolved corporation (Tan Tiong io v !., 4 8o 51--7, "pril 23, 1;62'


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B. $he followin/ may appear to the C$! n anc (RRC$! Rule 4- Sec

2),

!ny party adversely affected y decision or rulin/ of,

1 The !T" in Civision in the *otion for econsideration for 8ew Trial0

2 The !""0

3 The T! in the exercise of its appellate


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*. %ow, odes of !ppeal

!. n Civil Cases

?. B= 1#n4 +#+#&n ,&) )$# +& +- CTA D#$#%#&n (n*)

)&!*() n1&4&(% +& +-+ )&$#** ,&) (n*) R(1 72 &,+- R(1% &, C&()+ ,&) *!#%#&n% )(1#n4% n* #n!+#&n &, +-" a. Co,,issioner of the Internal RevenueE b. Co,,issioner of Custo,sE c. 7ecretary of inanceE d. 7ecretary of Trade and IndustryE

e. The RTC (RRCT# Rule 8# 7ec &aH"

REUIREMENTS a. iling a veried petition for review under the CTA in )legible copiesE

b. ;eposit of ling feesE c. !roof of 7ervice to the adverse party d. Certication of the $on3oru, shopping (Rules of Court# Rule&*# 7ection % and *"

2. B= 1#n4 +#+#&n ,&) R$# #n CTA n


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a The !T" in division or in a motion for reconsideration or new trial

) The !""0 or

c The T! in the exercise of its "ppellate


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=. n cases decided y the R$C in the e1ercise of its appellate Aurisdiction<

y filin/ a petition for review under Rule 4= to the Court en anc (!T",

le ;, $ec ;'

Burden of $a1payers !ppeal to the C$!

.t is the )urden of the taxpayer to appeal on !T" to prove )y a whole disclosure of

data in his possession thatA

1 The tax assessment is wrong0

2 The tax assessment is purely a presumption and not )ased on actual facts0

3 The correct computation of lia)ility if any ($y 9o v !T", 4 8o 71##6, "ugust

17, 1;77

The )urden of proof is on the taxpayers contesting the validity of correctness of

the assessments to prove not only that the one who rendered the assailed

decision is wrong )ut the taxpayer is right 9roving that the assessment is wrong

is not enough (> Tam)unting 9awnshop, .nc v !., !T" !ase 8o 6237,

cto)er 7, 2#'


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REASON"

%. The tax court could settle nothingE and*. The way i open for subse>uent assess,ent and appeals. The roots of controversy ,ust be cut (7y !o v. CA # GR 138%&&# August %8# %488".

W#+-*)1 &, n 1 )n*)% +- %%#1**!#%#&n n1 n* /!(+&)=y withdrawing the appeal# petitioner is dee,ed to haveaccepted the decision of the CTA. And the CTA had alreadydenied taxpayerJs re>uest for the issuance of tax creditcerticate for insuBciency of evidence# it ,ay no longer be

included in the taxpayerJs future clai,s.

!etitioner cannot be allowed to circu,vent the denial of there>uest fo tax credit by abandoning its appeal and ling anew clai, (Central 1uzon ;rug Corp. v. CIR# G.R $o.%8%')%# 9arch *# *+%%".


54/61

T- 2=) )%!)#+#$ )#&* )&$#** #n S!+#&n ??2 A &,+- NIRC #% 1#!


55/61

ecision is ,ade after %*+3day period. In both instances# the taxpayer has '+hich to le an appeal with the CTA. As we set it then# the %*+3day period isg an appeal with the CTA and pre,ature ling of clai, for refundKcredit of

ore the CTA warrants a dis,issal inas,uch as no -urisdiction is ac>uired by

= O)*) &, CTA N&+ A1


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• This remedy is not exclusive and does not preclude the !ourt

from availing other means under the ules of !ourt

Findin/s of Fact of the C$! not reviewale

The !ourt will not lightly set aside the conclusions reached )y the

!T" which, the very nature of its very function of )eing dedicated

exclusively to the reslution of the tax pro)lems, has accordingly

developed an expertise to the su)+ect, unless there has )een an

a)use or improvident exercise of authority

:actual findings )y the !T" can only )e distur)es on appeal if they

are supplied )y su)stantial evidence or if there is showing of gross

error or a)use on the part of !T"

.n the a)sence of any clear and convincing proof to the contrary, the!ourt will presume that the !T" has rendered a decision which is

valid in every respect (!ommissioner of .nternal evenue v Toledo,

9ower .nc, 4 8o 17377,


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9!=CE= ":T= T>=

C=!.$.8 :!T" .8 C.F.$.8


58/61

ules of 9rocedure

• &ursuant to R! 7252- the decision of teh C$! in division is no

lon/er appealale to the Court of !ppeals ut to C$! en anc.

RDS "F $% &!R$ !FFC$D

6. " ruling, order or decision of the !T" in division5 file a motion for

reconsideration for new trial )efore the same division within the 1 daysfrom notice thereof0 9rovided, however that in criminal cases, the general

rule applica)le in general courts on matters of prosecution and appeal shall

liDewise apply (" 112, as amended, $ec 11'

2 The resolution of the C.vision of the !T" on the motion for

reconsideration or new trial5 file a petition for review with the !T" en )anc

3 The decision or ruling of teh !T" en )anc 5 file with the $upreme !ourt

a verified petition for review on certiorari within 1 days from receipt of the

decision or ruling pursuant to ule # of the ules of !ourt


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ffect o !ppeal Filed with the Supreme Court

The pending motion for reconsideration or for a new trial in the !ourt en )anc shall )e

deemed a)andoned (!T", ule 16, $ec 2'

3rounds of otion for #ew $rial

1 :raud, accident, mistaDe or excusa)le negligence (:"*=' which ordinarily prudence

could not have guarded against and )y reason of which such aggrieved party has )een

pro)a)ly impaired in his rights0 or

2 8ewly discovered evidence which he could not, with reasona)le diligence, have

discovered and produced at the trial and which , if presented, would pro)a)ly alter the

result (!T", ule 1, $ec '

Bhere there is a clear showing of entitlement refund, the technical rules may )e

waived so as to allow new trial even if the re?uistes or ground are not met, especially

when the failure to present evidence were ade?uately explained (9hilippine

9hosphate :ertilier !orp v !., 4 8o 1#1;-3,


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otion for Reconsideration ! Reuisite for &etition for Review of the decision of

the C$! Division

ule 7, $ection 1 of the !T" re?uires that the petition for review of a decision of the

!ourt in Civision must )e preceeded )y the filing of a timely motion for reconsideration or

new trial with the CivisionThe word GmustH clearly indicates the mandatory, not merely directory, nature of a

re?uirement (!ommisioner of !ustoms v $ales, 4 8o 173767, 8ovem)er 22, 21'

#o Second motion for reconsideration or #ew $rial

8o party shall )e allowed to file a second motion for reconsideration or new trial of a

decision, final resolution or order (!T", ule 1, $ec -, and ules of !ourt, ule 2,

$ec 2'

odification of C$! Decision- which has ecome final

3#R!9 R'9, nce a decision )ecomes final and executory, it cannot )e altered

and modified


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C&$"#S

1 .n some cases, where facts or events transpire after a decision has )ecome

executory, which facts constitute a supervening cause rendering the final

+udgement unenforcea)le, said +udgement may )e modified

2" final +udgement may )e altered when its execution )ecomes impossi)le or

un+ust (epu)lic v Enimex *icro =lectronics 4m>, 4 8o 1663;51, *arch

;, 2-'

Documents

Tax II Report