CTA Special Laws

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Republic Act No. 1125 June 16, 1954

AN ACT CREATING THE COURT OF TAX APPEALS

Section 1. Court; Judges; qualifications; salary; tenure . - There is hereby created a Court of Tax Appeals which shall consist of a Presiding Judge and two Associate Judges, each of whom shall be appointed by the President, with the consent of the

Commission on Appointments. The Presiding Judge shall be so designated in the commission issued to him by thePresident, and the Associate Judges shall have precedence according to the date o their commissions. The Presiding

Judge shall receive a compensation of thirteen thousand pesos per annum and shall have the same qualifications, rank,category and privileges as the Presiding Judge of the Court of Industrial Relations. The Associate Judges shall eachreceive a compensation of twelve thousand pesos per annum and shall have the same qualifications, rank, category andprivileges as a member of the Court of Industrial Relations. The Presiding Judge and the Associate Judges shall beappointed to hold office during good behavior, until they reach the age of seventy, or become incapacitated to dischargethe duties of their office, unless sooner removed for the same causes and in the same manner provided by law formembers of the judiciary of appellate rank.

Section 2. Quorum; temporary vacancy . - Any two Judges of the Court of Tax Appeals shall constitute a quorum, and theconcurrence of two judges shall be necessary to promulgate any decision thereof. In case of temporary vacancy, disability or disqualification, for any reason, of any of the judges of the said Court, the President may, upon the request of thePresiding Judge, designate any Judge of First Instance to act in his place; and such Judge of First Instance shall be duly qualified to act as such.

Section 3. Clerk of court; appointment; qualification; compensation . - The Court of Tax Appeals shall have the Clerk of Court who shall be appointed by the President with the consent of the Commission on Appointments. No person shall beappointed Clerk of Court unless he is duly authorized to practice law in the Philippines. The Clerk of Court shallexercise the same powers and perform the same duties in regard to all matters within the court's jurisdiction, as areexercise and performed by clerks of Court of First Instance, in so far of those powers and the performance of thoseduties the clerk shall be under the direction of the said court. The Clerk of Court shall receive a compensation of sixthousand pesos per annum.

Section 4. Other subordinate employees . - The Court of Tax Appeals shall appoint, in accordance with the Civil Service Law,rules and regulations, the necessary personnel to assist it in the performance of its duties. The said Court shall fix theirsalaries and prescribe their duties.

Section 5. Disqualifications . - No judge or other officer or employee of the Court of Tax Appeals shall intervene, directly or indirectly, in the management or control of any private enterprise which in any way may be affected by the functionsof the Court. Judges of the said Court shall be disqualified from sitting in any case on the same grounds provided underRule one hundred twenty-six of the Rules of Court for the disqualification of judicial officers. No person who has onceserviced in the Court in a permanent capacity, either as Presiding Judge or as Associated Judge thereof, shall be qualifiedto practice as counsel before the Court for a period of one year from his separation therefrom for any cause.

Section 6. P lace of office . - The Court of Tax Appeals shall have its office in the City of Manila, and shall hold hearings atsuch time and place as it may, by order in writing, designate with a view to assuring a reasonable opportunity fortaxpayers to appear with a l ittle inconvenience and expense as practicable.

Section 7. Jurisdiction

.- The Court of Tax Appeals shall exercise exclusive appellate jurisdiction to review by appeal, asherein provided.

(1) Decisions of the Collector of Internal Revenue in cases involving disputed assessments, refunds of internalrevenue taxes, fees or other charges, penalties imposed in relation thereto, or other matters arising under theNational Internal Revenue Code or other law or part of law administered by the Bureau of Internal Revenue;

(2) Decisions of the Commissioner of Customs in cases involving liability for customs duties, fees or othermoney charges; seizure, detention or release of property affected fines, forfeitures or other penalties imposed in



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relation thereto; or other matters arising under the Customs Law or other law or part of law administered by the Bureau of Customs; and

(3) Decisions of provincial or city Boards of Assessment Appeals in cases involving the assessment andtaxation of real property or other matters arising under the Assessment Law, including rules and regulationsrelative thereto.

Section 8. Court of record; seal; proceedings . - The Court of Tax Appeals shall be a court of record and shall have a seal which shall be judicially noticed. It shall prescribe the form of its writs and other processes. It shall have the power topromulgate rules and regulations for the conduct of the business of the Court, and as may be needful for the uniformity of decisions within its jurisdiction as conferred by law, but such proceedings shall not be governed strictly by technicalrules of evidence.

Section 9. F ees . - The Court shall fix reasonable fees for the filing of an appeal, for certified copies of any transcript of record, entry or other document, and for other authorized services rendered by the Court or its personnel.

Section 10. P ower to administer oaths; issue subpoena; punish for contempt . - The Court shall have the power to administer oaths,receive evidence, summon witnesses by subpoena and require the production of papers or documents by subpoena ducetecum, subject in all respects to the same restrictions and qualifications as apply in judicial proceedings of a similar

nature. The Court shall, in accordance with Rule sixty-four for the Rules of Court, have the power to punish forcontempt for the same causes, under the same procedure and with the same penalties provided therein.

Section 11. W ho may appeal; effect of appeal . - Any person association or corporation adversely affected by a decision orruling of the Collector of Internal Revenue, the Collector of Customs or any provincial or city Board of Assessment

Appeals may file an appeal in the Court of Tax Appeals within thirty days after the receipt of such decision or ruling.

No appeal taken by the Court of Appeals from the decision of the Collector of Internal Revenue or the Collector of Customs shall suspend the payment, levy, distraint, and or sale of any property of the taxpayer for the satisfaction of histax liability as provided by existing law; Provided, however, That when in the opinion of the Court the collection by theBureau of Internal Revenue or the Commissioner of Customs may jeopardize the interest of the Government and/orthe taxpayer the Court at any stage of the proceeding may suspend the said collection and require the taxpayer either todeposit the amount claimed or to file a surety bond for not more than double the amount with the Court;

Section 12. T aking of evidence . - The Court may, upon proper motion on or its initiative, direct that a case, or any issuethereof, be assigned to one of its members for the taking of evidence, when the determination of a question of factarises upon motion or otherwise in any stage of the proceedings, or when the taking of an account is necessary, or whenthe determination of an issue of fact requires the examination of a long account. The hearing before such member shallproceed in all respects as though the same had been made before the Court.

Upon the recommendation of such hearing such member, he shall promptly submit to the Court his report in writing,stating his findings and conclusions; and thereafter, the Court shall render its decisions on the case, adopting, modifying,or rejecting the report in whole or in part, as the case may be, or the Court may, in its discretion recommit it withinstructions, or receive further evidence.

Section 13. Decision . - Cases brought before the Court shall be decided within thirty days after the submission thereof for

decision. Decisions of the Court shall be in writing, stating clearly and distinctly the facts and the law on which they arebased, and signed by the judges concurring therein. The Court shall provide for the publication of its decisions in theOfficial Gazette in such form and manner as may best be adopted for public information and use.

As in the case of judicial officers under section one hundred twenty-nine of the Administrative Code, the judges of theCourt shall each certify on their applications for leave, and upon salary vouchers presented by them for payment, orupon the payrolls under which their salaries are paid, that all proceedings, petitions and motions which have beensubmitted to the Court for determination or decision for a period of thirty days or more have been determined ordecided by the Court on or before the date of making the certificate, and no leave shall be granted and no salary shall bepaid without such certificate.



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Section 14. E ffect of decision that tax is barred by statute of limitations . - If the assessment or collection of any tax is barred by any statute of limitations, the decisions of the Court that effect shall be considered as its decision that there is nodeficiency in respect of such tax.

Section 15. P ublicity of proceedings and publication of decisions . - All decisions of, and all evidence received by the Court and itsdivisions, including transcript of stenographic reports of the hearings, shall be public records open to the inspection of

the public, except that after the decision of the Court in any proceedings has become final the Court may, upon motionof the taxpayer or the Government permit the withdrawal, by the part entitled thereto of originals of books, documentsand records, and or models, diagrams, and other exhibits, introduced in evidence before the Court or any division; or theCourt may, on its own motion, make such other disposition thereof as it deems advisable. The Court shall provide forthe publication of its decisions in the Official Gazette in such form and manner as may be best adopted for publicinformation and use.

Section 16. Damages . - Where an appeal is found to be frivolous, or that proceedings have been instituted merely fordelay, the Court may assess damage against the appellants in an amount not exceeding five hundred pesos, which shallbe collected in the same manner as fines or other penalties authorized by law.

Section 17. V iolation of penal law . - When, in the performance of its functions, it should appear to the Court that a crimeor other violation of law has been committed, or, that there are reasonable grounds to believe that any official, employeeor private person is guilty of any crime, offense or other violation, the Court shall refer the matter to the properdepartment, bureau or office for investigation or the institution of such criminal or administrative action as the facts andcircumstances of the case may warrant.

Section 18. A ppeal to the Supreme Court . - No judicial proceeding against the Government involving matters arising underthe National Internal Revenue Code, the Customs Law or the Assessment Law shall be maintained, except as hereinprovided, until and unless an appeal has been previously filed with the Court of Tax Appeals and disposed of inaccordance with the provisions of this Act.

Any party adversely affected by any ruling, order or decision of the Court of tax Appeals may appeal therefrom to theSupreme Court by filing with the said Court a notice of appeal and with the Supreme Court a petition for review, withinthirty days from the date he receives notice of said ruling, order or decision. If, within the aforesaid period, he fails toperfect his appeal, the said ruling, order or decision shall become final and conclusive against him

If no decision is rendered by the Court within thirty days from the date a case is submitted for decision, the party adversely affected by said ruling, order or decision may file with said Court a notice of his intention to appeal to theSupreme Court, and if, within thirty days from the filing of said notice of intention to appeal, no decision has as yet beenrendered by the Court, the aggrieved party may file directly with the Supreme Court an appeal from said ruling, order ordecision, notwithstanding the foregoing provisions of this section.

If any ruling, order or decision of the Court of Tax Appeals be adverse to the Government, the Collector of InternalRevenue, the Commissioner of Customs, or the provincial or city Board of Assessment Appeals concerned may likewisefile an appeal therefrom to the Supreme Court in the manner and within the same period as above prescribed for privateparties.

Any proceeding directly affecting any ruling, order or decision of the Court of Tax Appeals shall have preference over all

other civil proceedings except habeas corpus, workmen's compensation and election cases.

Section 19. R eview by certiorari . - Any ruling, order or decision of the Court of Tax Appeals may likewise be reviewed by the Supreme Court upon a writ of certiorari in proper cases. Proceedings in the Supreme Court upon a writ of certiorarior a petition for review, as the case may be, shall be in accordance with the provisions of the Rules of Court or suchrules as the Supreme Court may prescribe.

Section 20. A ppropriation . - The sum of seventy-thousand pesos is hereby appropriated out of any funds in the National Treasury not otherwise appropriated for the salaries and the purchase of supplies and equipment necessary for the



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operation of the Court of Tax Appeals herein established during the current fiscal year. Thereafter the funds necessary for the operation of the Court shall be included in the regular Appropriation Act.

Section 21. General provisions . - Whenever the words "Board of Tax Appeals" are used in Commonwealth Act NumberedFour hundred and seventy, otherwise known as the Assessment Law, or in other laws, rules and regulations relativethereto, the same shall read "Board of Assessment Appeals."

The Central Board of Tax Appeals created under section two of Commonwealth Act Numbered Five hundred and thirty is hereby abolished.

Executive Order Numbered Four hundred and one-A, dated the fifth of January, nineteen hundred and fifty- one, isrepealed and the Board of Tax Appeals created therein, abolished: Provided, however, That all cases heretofore decidedby the said Board of Tax Appeals and thence appealed to the Supreme Court pursuant to Executive Order NumberedFour hundred one-A shall be decided by the Supreme Court on the merits to all intents and purposes as if saidExecutive Order has been duly enacted by the Congress: And, Provided, further, That all cases now pending in the saidBoard of Tax Appeals shall be transferred to the Court of Tax Appeals and shall be heard and decided by the latter to allintents and purposes as if they had been originally filed therein.

Any law or part of law, or any executive order, rule or regulation or part thereon, inconsistent with the provisions of this

Act is hereby repealed.

Section 22. P ending cases to be remanded to Court . - All cases involving disputed assessment of Internal Revenue taxes orcustoms duties pending determination before the Court of First Instance shall be certified and remanded by therespective clerk of court to the Court of Tax Appeals for final disposition thereof.



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REPUBLIC ACT NO. 3457

REPUBLIC ACT NO. 3457 - AN ACT TO AMEND Sec. ONE OF REPUBLIC ACT NUMBERED ONE THOUSAND ONE HUNDRED AND TWENTY-FIVE, ENTITLED "AN ACT CREATING THE COURTOF TAX APPEALS," AND FOR OTHER PURPOSES

Section 1. Section one of Republic Act Numbered One thousand one hundred and twenty-five is hereby amended toread as follows:

"Section 1. Court; judges; qualifications; salary; tenure. ³ There is hereby created a Court of Tax Appeals which shallconsist of a Presiding Judge and two Associate Judges, each of whom shall be appointed by the President, with theconsent of the Commission on Appointments. The Presiding Judge shall be so designated in the commission issued tohim by the President, and the Associate Judges shall have precedence according to the date of their commissions. ThePresiding Judge shall receive a compensation of eighteen thousand pesos per annum and shall have the samequalifications, rank, category and privileges as the Presiding Judge of the Court of Industrial Relations. The Associate

Judges shall each receive a compensation of seventeen thousand pesos per annum and shall have the same qualifications,rank, category and privileges as a member of the Court of Industrial Relations. The Presiding Judge and the Associate

Judges shall be appointed to hold office during good behavior, until they reach the age of seventy, or becomeincapacitated to discharge the duties of their office, unless sooner removed for the same causes and in the samemannerprovided by law for members of the judiciary of appellate rank."

Sec. 2. The sum of twelve thousand pesos or so much thereof as may be necessary is hereby appropriated, out of any funds in the National Treasury not otherwise appropriated, to carry out the provisions of this Act for the fiscal yearnineteen hundred sixty-one to nineteen hundredsixty-two. Thereafter, such amount as may be necessary shall beincluded in the annual General Appropriation Acts.

Sec. 3. This Act shall take effect as of January 1, 1962

Republic Act No. 9282 March 30 2004

AN ACT EXPANDING THE JURISDICTION OF THE COURT OF TAX APPEALS (CTA), ELEVATING ITSRANK TO THE LEVEL OF A COLLEGIATE COURT WITH SPECIAL JURISDICTION AND ENLARGINGITS MEMBERSHIP, AMENDING FOR THE PURPOSE CERTAIN SECTIONS OR REPUBLIC ACT NO. 1125,

AS AMENDED, OTHERWISE KNOWN AS THE LAW CREATING THE COURT OF TAX APPEALS, ANDFOR OTHER PURPOSES

Section 1. Section 1 of Republic Act No. 1125, as amended is hereby further amended to read as follows:

"SECTION 1. Court; Justices; Qualifications; Salary; Tenure. - There is hereby created a Court of Tax Appeals (CTA) which shall be of the same level as the Court of Appeals, possessing all the inherent powers of a Court of Justice, andshall consist of a Presiding Justice and five (5) Associate Justices. The incumbent Presiding Judge and Associate Judgesshall continue in office and bear the new titles of Presiding Justice and Associate Justices. The Presiding Justice and themost Senior Associate Justice shall serve as chairmen of the two (2) Divisions. The additional three (3) Justices andsucceeding members of the Court shall be appointed by the President upon nomination by the Judicial and BarCouncil. The Presiding Justice shall be so designated in his appointment, and the Associate Justices shall haveprecedence according to the date of their respective appointments, or when the appointments of two (2) or more of

them shall bear the same date, according to the order in which their appointments were issued by the President. They shall have the same qualifications, rank, category, salary, emoluments and other privileges, be subject to the sameinhibitions and disqualifications, and enjoy the same retirements and other benefits as those provided for under existing laws for the Presiding Justice and Associate Justices of the Court of Appeals.

"Whenever the salaries of the Presiding Justice and the Associate Justices of the Court of Appeals are increased, suchincreases in salaries shall be deemed correspondingly extended to and enjoyed by the Presiding Justice and Associate

Justices of the CTA.



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"The Presiding Justice and Associate Justices shall hold office during good behavior, until they reach the age of 70, orbecome incapacitated to discharge the duties of their office, unless sooner removed for the same causes and in thesame manner provided by law for members of the judiciary of equivalent rank."

Section 2. Section 2 of the same Act is hereby amended to read as follows:

"SEC. 2. Sitting En Banc or Division; Quorum; Proceedings. - The CTA may sit en banc or in two (2) Divisions, eachDivision consisting of three (3) Justices.

"Four (4) Justices shall constitute a quorum for sessions en banc and 2 Justices for sessions of a Division: Provided, That when the required quorum cannot be constituted due to any vacancy, disqualification, inhibition, disability, or any otherlawful cause, the Presiding Justice shall designate any Justice of other Divisions of the Court to sit temporarily therein.

"The affirmative votes of four (4) members of the Court en banc or two (2) members of a Division, as the case may be,shall be necessary for the rendition of a decision or resolution."


"SEC. 3. Clerk of Court; Division Clerks of Court; Appointment; Qualification; Compensation. - The CTA shall have a

Clerk of Court and 3 Division Clerks of Court who shall be appointed by the Supreme Court. No person shall beappointed Clerk of Court or Division Clerk of Court unless he is duly authorized to practice law in the Philippines. TheClerk of Court and Division Clerks of Court shall exercise the same powers and perform the same duties in regard to allmatters within the Court's jurisdiction, as are exercised and performed by the Clerk of Court and Division Clerks of Court of the Court of Appeals, in so far as the same may be applicable or analogous; and in the exercise of those powersand the performance of those duties they shall be under the direction of the Court. The Clerk of Court and the DivisionClerks of Court shall have the same rank, privileges, salary, emoluments, retirement and other benefits as those providedfor the Clerk of Court and Division Clerks of Court of the Court of Appeals, respectively.'


"SEC. 4. Other Subordinate Employees. - The Supreme Court shall appoint all officials and employees of the CTA, inaccordance with the Civil Service Law. The Supreme Court shall fix their salaries and prescribe their duties."


"SEC. 5. Disqualifications. - No Justice or other officer or employee of the CTA shall intervene, directly or indirectly, inthe management or control of any private enterprise which in any way may be affected by the functions of the Court.

Justices of the Court shall be disqualified from sitting in any case on the same grounds provided under Rule one hundredthirty-seven of the Rules of Court for the disqualification of judicial officers. No person who has once served in theCourt in a permanent capacity, either as Presiding Justice or as Associate Justice thereof, shall be qualified to practice ascounsel before the Court for a period of one (1) year from his retirement or resignation."


"SEC. 6. Place of Office. - The CTA shall have its principal office in Metro Manila and shall hold hearings at such timeand place as it may, by order in writing, designate."


"Sec. 7. Jurisdiction. - The CTA shall exercise:

"a. Exclusive appellate jurisdiction to review by appeal, as herein provided:



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"1. Decisions of the Commissioner of Internal Revenue in cases involving disputed assessments,refunds of internal revenue taxes, fees or other charges, penalties in relation thereto, or other mattersarising under the National Internal Revenue or other laws administered by the Bureau of InternalRevenue;

"2. Inaction by the Commissioner of Internal Revenue in cases involving disputed assessments,

refunds of internal revenue taxes, fees or other charges, penalties in relations thereto, or other mattersarising under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue, where the National Internal Revenue Code provides a specific period of action, in

which case the inaction shall be deemed a denial;

"3. Decisions, orders or resolutions of the Regional Trial Courts in local tax cases originally decided orresolved by them in the exercise of their original or appellate jurisdiction;

"4. Decisions of the Commissioner of Customs in cases involving liability for customs duties, fees orother money charges, seizure, detention or release of property affected, fines, forfeitures or otherpenalties in relation thereto, or other matters arising under the Customs Law or other lawsadministered by the Bureau of Customs;

"5. Decisions of the Central Board of Assessment Appeals in the exercise of its appellate jurisdictionover cases involving the assessment and taxation of real property originally decided by the provincialor city board of assessment appeals;

"6. Decisions of the Secretary of Finance on customs cases elevated to him automatically for review from decisions of the Commissioner of Customs which are adverse to the Government under Section2315 of the Tariff and Customs Code;

"7. Decisions of the Secretary of Trade and Industry, in the case of nonagricultural product,commodity or article, and the Secretary of Agriculture in the case of agricultural product, commodity or article, involving dumping and countervailing duties under Section 301 and 302, respectively, of the

Tariff and Customs Code, and safeguard measures under Republic Act No. 8800, where either party may appeal the decision to impose or not to impose said duties.

"b. Jurisdiction over cases involving criminal offenses as herein provided:

"1. Exclusive original jurisdiction over all criminal offenses arising from violations of theNational Internal Revenue Code or Tariff and Customs Code and other laws administeredby the Bureau of Internal Revenue or the Bureau of Customs: Provided, however, Thatoffenses or felonies mentioned in this paragraph where the principal amount o taxes andfees, exclusive of charges and penalties, claimed is less than One million pesos(P1,000,000.00) or where there is no specified amount claimed shall be tried by the regularCourts and the jurisdiction of the CTA shall be appellate. Any provision of law or the Rulesof Court to the contrary notwithstanding, the criminal action and the corresponding civilaction for the recovery of civil liability for taxes and penalties shall at all times besimultaneously instituted with, and jointly determined in the same proceeding by the CTA,

the filing of the criminal action being deemed to necessarily carry with it the filing of the civilaction, and no right to reserve the filling of such civil action separately from the criminalaction will be recognized.

"2. Exclusive appellate jurisdiction in criminal offenses:

"a. Over appeals from the judgments, resolutions or orders of the Regional TrialCourts in tax cases originally decided by them, in their respected territorialjurisdiction.



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"b. Over petitions for review of the judgments, resolutions or orders of theRegional Trial Courts in the exercise of their appellate jurisdiction over tax casesoriginally decided by the Metropolitan Trial Courts, Municipal Trial Courts andMunicipal Circuit Trial Courts in their respective jurisdiction.

"c. Jurisdiction over tax collection cases as herein provided:

"1. Exclusive original jurisdiction in tax collection cases involving finaland executory assessments for taxes, fees, charges and penalties: Provided,however, That collection cases where the principal amount of taxes andfees, exclusive of charges and penalties, claimed is less than P1,000,000shall be tried by the proper Municipal Trial Court, Metropolitan TrialCourt and Regional Trial Court.

"2. Exclusive appellate jurisdiction in tax collection cases:

"a. Over appeals from the judgments, resolutions or orders of the Regional Trial Courts in tax collection cases originally decided by them, in their respective territorial jurisdiction.

"b. Over petitions for review of the judgments, resolutions ororders of the Regional Trial Courts in the Exercise of theirappellate jurisdiction over tax collection cases originally decidedby the Metropolitan Trial Courts, Municipal Trial Courts andMunicipal Circuit Trial Courts, in their respective jurisdiction."


"SEC. 10. Power to Administer Oaths; Issue Subpoena; Punish for Contempt. - The Court shall have the power toadminister oaths, receive evidence, summon witnesses by subpoena duces tecum, subject in all respects to the samerestrictions and qualifications as applied in judicial proceedings of a similar nature. The Court shall, in accordance withRule seventy-one of the Rules of Court, have the power to punish for contempt for the same causes, under the same

procedure and with the same penalties provided therein."


"SEC. 11. Who May Appeal; Mode of Appeal; Effect of Appeal. - Any party adversely affected by a decision, ruling orinaction of the Commissioner of Internal Revenue, the Commissioner of Customs, the Secretary of Finance, theSecretary of Trade and Industry or the Secretary of Agriculture or the Central Board of Assessment Appeals or theRegional Trial Courts may file an appeal with the CTA within thirty (30) days after the receipt of such decision or ruling or after the expiration of the period fixed by law for action as referred to in Section 7(a)(2) herein.

"Appeal shall be made by filing a petition for review under a procedure analogous to that provided for under Rule 42 of the 1997 Rules of Civil Procedure with the CTA within thirty (30) days from the receipt of the decision or ruling or inthe case of inaction as herein provided, from the expiration of the period fixed by law to act thereon. A Division of the

CTA shall hear the appeal: Provided, however, That with respect to decisions or rulings of the Central Board of Assessment Appeals and the Regional Trial Court in the exercise of its appellate jurisdiction appeal shall be made by filing a petition for review under a procedure analogous to that provided for under rule 43 of the 1997 Rules of CivilProcedure with the CTA, which shall hear the case en banc.

"All other cases involving rulings, orders or decisions filed with the CTA as provided for in Sec 7 shall be raffled to itsDivisions. A party adversely affected by a ruling, order or decision of a Division of the CTA may file a motion forreconsideration of new trial before the same Division of the CTA within 15 days from notice thereof: Provide, however,



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That in criminal cases, the general rule applicable in regular Courts on matters of prosecution and appeal shall likewiseapply.

"No appeal taken to the CTA from the decision of the Commissioner of Internal Revenue or the Commissioner of Customs or the Regional Trial Court, provincial, city or municipal treasurer or the Secretary of Finance, the Secretary of

Trade and Industry and Secretary of Agriculture, as the case may be shall suspend the payment, levy, distraint, and/or

sale of any property of the taxpayer for the satisfaction of his tax liability as provided by existing law: Provided, however, That when in the opinion of the Court the collection by the aforementioned government agencies may jeopardize theinterest of the Government and/or the taxpayer the Court any stage of the proceeding may suspend the said collectionand require the taxpayer either to deposit the amount claimed or to file a surety bond for not more than double theamount with the Court.

"In criminal and collection cases covered respectively by Section 7(b) and (c) of this Act, the Government may directly file the said cases with the CTA covering amounts within its exclusive and original jurisdiction."


"SEC. 13. Decision, Maximum Period for Termination of Cases. - Cases brought before the Court shall be decided inaccordance with Section 15, paragraph (1), Article VIII (Judicial Department) of the 1987 Constitution. Decisions of the

Court shall be in writing, stating clearly and distinctly the facts and the law on which they are based, and signed by the Justices concurring therein. The Court shall provide for the publication of its decision in the Official Gazette in suchform and manner as may best be adopted for public information and use.

"The Justices of the Court shall each certify on their applications for leave, and upon salary vouchers presented by themfor payment, or upon the payrolls under which their salaries are paid, that all proceedings, petitions and motions whichhave been submitted to the Court for determination or decision for a period required by the law or the Constitution, asthe case may be, have been determined or decided by the Court on or before the date of making the certificate, and noleave shall be granted and no salary shall be paid without such certificate."

Section 11. Section 18 of the same Act is hereby amended as follows:

"SEC. 18. Appeal to the Court of Tax Appeals En Banc. - No civil proceeding involving matter arising under the

National Internal Revenue Code, the Tariff and Customs Code or the Local Government Code shall be maintained,except as herein provided, until and unless an appeal has been previously filed with the CTA and disposed of inaccordance with the provisions of this Act.

"A party adversely affected by a resolution of a Division of the CTA on a motion for reconsideration or new trial, may file a petition for review with the CTA en banc."

"SEC. 19. Review by Certiorari. - A party adversely affected by a decision or ruling of the CTA en banc may file with theSupreme Court a verified petition for review on certiorari pursuant to Rule 45 of the 1997 Rules of Civil Procedure."

Section 13. Distraint of Personal Property and/or Levy on Real Property. - Upon the issuance of any ruling, order ordecision by the CTA favorable to the national government, the CTA shall issue an order authorizing the Bureau of Internal Revenue, through the Commissioner to seize and distraint any goods, chattels, or effects, and the personal

property, including stocks and other securities, debts, credits, bank accounts, and interests in and rights to personalproperty and/or levy the real property of such persons in sufficient quantity to satisfy the tax or charge together withany increment thereto incident to delinquency. This remedy shall not be exclusive and shall not preclude the Court fromavailing of other means under the Rules of Court.

Section 14. Retention of Personnel; Security of Tenure; Upgrading of Positions and Salaries. - All existing permanentpersonnel of the CTA shall not be adversely affected by this Act. They shall continue in office and shall not be removedor separated from the service except for cause as provided for by existing laws. Further, the present positions andsalaries of personnel shall be upgraded to the level of their counterparts in the Court of Appeals.



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Republic Act No. 9505 August 22, 2008

AN ACT ESTABLISHING A PROVIDENT PERSONAL SAVINGS PLAN, KNOWN AS THE PERSONALEQUITY AND RETIREMENT ACCOUNT (PERA)

SEC. 1. T itle . - This Act shall be known as the "P ersonal Equity and R etirement Account ( PERA) Act of 2008 ".

SEC. 2. Declaration of P olicy . - It is declared the policy of the State to promote capital market development and savingsmobilization by establishing a legal and regulatory framework of retirement plans for persons, comprised of voluntary personal savings and investments. The State recognizes the potential contribution of PERA to long-term fiscalsustainability through the, provision of long-term financing and reduction of social pension benefits.

SEC. 3. Definition of T erms . -Unless the context requires otherwise, the following terms shall have the following significance as used in this Act:

(a) "Administrator" is an entity accredited by the Bureau of Internal Revenue (BIR), after pre qualification by the concerned Regulatory Authority. The Administrator shall be responsible for overseeing the PERA, whosecore functions shall include, but not limited to: reporting on contributions made to the account, computing the

values of investments, educating the Contributor, enforcing PERA contributions and withdrawal limits,

collecting appropriate taxes and penalties for the government, securing BIR Income Tax Credit Certificates forthe Contributor, consolidating reports on all investments, income, expenses and withdrawals on the accountand ensuring that PERA contributions are invested in accordance with the prudential guidelines set by theRegulatory Authorities.

(b) "Contributor" is any person with the capacity to contract and possesses a tax identification number. TheContributor establishes and makes contributions to a PERA.

(c) "Custodian" is a separate and distinct entity unrelated to the Administrator, accredited by the BangkoSentral ng Pilipinas, providing services in connection with the custodianship of funds and securities comprising the PERA investments. The Custodian shall be responsible for receiving all funds in connection with thePERA, maintaining custody of all original securities, evidence of deposits or other evidence of investment. TheCustodian shall operate independently from the Administrator. The Custodian is required to report to the

Contributor and the concerned Regulatory Authority at regular intervals all financial transactions and alldocuments in its custody under a PERA.

(d) "Early withdrawal" shall pertain to any withdrawal prior to the period of distribution as set forth underSection 12 hereof.

(e) "Investment Manager" is a regulated person or entity authorized by a Contributor to make investmentdecisions for his PERA. As such, it shall assume fiduciary duty and responsibility for PERA investments. AnInvestment Manager shall act with utmost fidelity by observing policies directed towards confidentiality,scrupulous care, safety and prudent management of PERA funds.

(f) "Personal Equity and Retirement Account (PERA)" refers to the voluntary retirement account establishedby and for the exclusive use and benefit of the Contributor for the purpose of being invested solely in PERA

investment products in the Philippines. The Contributor shall retain the ownership, whether legal or beneficial,of funds placed therein, including all earnings of such funds.

(g) "PERA Investment Product" refers to a unit investment bust fund, mutual fund, annuity contract, insurancepension products, pre-need pension plan, shares of stock and other securities listed and traded in a localexchange, exchange-traded bonds or any other investment product or outlet which the concerned Regulatory

Authority may allow for PERA purposes: P rovided , however , That to qualify as a PERA investment product underthis Act, the product must be non-speculative, readily marketable, and with a track record of regular income



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SEC. 12. Distributions Upon R etirement/Death . - Distributions may be made upon reaching the age of fifty-five (55) years:P rovided , That the Contributor has made contributions to the PERA for at least five (5) years. The distribution shall bemade in either lump sum or pension for a definite period or lifetime pension, the choice of which shall be at the optionof the Contributor. The Contributor, however, has the option to continue the PERA. Complete distribution shall bemade upon the death of the Contributor, irrespective of the age of the Contributor at the time of his death.

SEC. 13. P enalty on Early W ithdrawal . - Any early withdrawal shall be subject to a penalty, the amount of which would bedetermined by the Secretary of Finance and payable to the government: P rovided , That the amount of the penalty shall inno case be less than the tax incentives enjoyed by the Contributor.

No early withdrawal penalty shall be imposed on any withdrawal of any funds for the following purposes:

(a) For payment of accident or illness-related hospitalization in excess of thirty (30) days; and

(b) For payment to a Contributor who has been subsequently rendered permanently totally disabled as definedunder the Employees Compensation Law, Social Security Law and Government Service Insurance System Law.

SEC. 14. N on- Assignability . - No portion of the assets of a PERA may be assigned, alienated, pledged, encumbered,attached, garnished, seized or levied upon. PERA assets shall not be considered assets of the Contributor for purposes

of insolvency and estate taxes.

SEC. 15. R ules and R egulations . - Consistent with the policy of promoting transparency in PERA investment and thereby affording protection to the Contributor, the Department of Finance, the Bureau of Internal Revenue and the concernedRegulatory Authorities, with the Bangko Sentral ng Pilipinas as lead agency, shall coordinate to establish uniform rulesand regulations pertaining to the following subject matters:

(a) Qualification and disqualification standards for Administrators, Custodians and Investment Managers,including directors and officers thereof;

(b) Qualified and/or eligible PERA investment products;

(c) Valuation standards for PERA investments;

(d) Disclosure requirements on the terms and conditions of the PERA investments;

(e) Minimum requirements imposed on the Administrators as regards inculcating financial literacy in investors;

(f) Ascertainment of client suitability for PERA products;

(g) Fees to be charged by the Administrator, Custodian or Investment Manager shall always be reasonable andapproved by the concerned Regulatory Authority;

(h) Record-keeping, reporting and audit requirement of Administrators and Custodians pertaining to recordsfor all contributions, earnings and total account balances; and

(i) Other pertinent matters to be determined by the Regulatory Authorities.

SEC. 16. Administration of T ax Incentives . - The BIR shall issue the implementing rules and regulations regarding all aspectsof tax administration relating to PERA. The BIR shall coordinate the qualification standards of the Administrator withthe Regulatory Authorities.

SEC. 17. P enalty . - A fine of not less than P 50,000 nor more than P 200,000 or imprisonment of not less than 6 yearsand 1 day to not more than 12 years or both such fine and imprisonment, at the discretion of the court, shall be imposed



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upon any person, association, partnership or corporation, its officer, employee or agent, who, acting alone or inconnivance with others, shall:

(a) Act as Administrator, Custodian or Investment Manager without being properly qualified or without being granted prior accreditation by the concerned Regulatory Authority;

(b) Invest the contribution without written or electronically authenticated authority from the Contributor, orinvest the contribution in contravention of the instructions of the Contributor;

(c) Knowingly and willfully make any statement in any application, report, or document required to be filedunder this Act, which statement is false or misleading with respect to any material fact;

(d) Misappropriate or convert, to the prejudice of the Contributor, contributions to and investments or incomefrom the PERA;

(e) By gross negligence, cause any loss, conversion, or misappropriation of the contributions to, or investmentsfrom, the PERA or

(f) Violate any provision of this Act or rules and regulations issued pursuant to this Act. Notwithstanding the

foregoing, any willful violation by the accredited Administrator, Custodian or Investment Manager of any of the provisions of this Act, or its implementing rules and regulations, or other terms and conditions of theauthority to act as Administrator, Custodian or Investment Manager may be subject to the administrativesanctions provided for in applicable laws. The above penalties shall be without prejudice to whatever civil andcriminal liability provided for under applicable laws for the same act or omission.

SEC. 18. Abuse of the T ax Exemption and P rivileges . - Any person, natural or juridical, who unduly avails of the taxexemption privileges herein granted, possibly by co-mingling PERA accounts in an investment with other investments,

when such person is not entitled hereto, shall be subject to the penalties provided in Section 17 hereof. In addition, theoffender shall refund to the government double the amount of the tax exemptions and privileges enjoyed under this Act,plus interest of 12% per year from the date of enjoyment of the tax exemptions and privileges to the date of actualpayment.

CTA Special Laws

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Transcript of CTA Special Laws