POWER AND DUTIES OF THE BIR
Bureau of Internal Revenue (BIR)- The main government agency tasked
with the collection of revenue and enforcement of tax laws.
Power and duties of the BIR:
1. Assessment and collection of all internal revenue taxes, fees and
charges (TPC)
2. Enforcement of all forfeitures, penalties, and fines (FPF) connected
therewith
3. Execution of all judgments decided by the court in its favor
4. Effecting and administering the supervisory and police powers conferred
to it by the Tax Code and other laws
Powers and duties of the Commissioner of Internal Revenue (CIR):
1. The exclusive and original jurisdiction to interpret tax laws
2. Power to decide disputed assessments, refunds of internal revenue
taxes, fees, or other charges, penalties imposed in relation thereto, or
other matters arising under the tax code or other laws or portions
thereof administered by the BIR.
Powers of the CIR are both quasi-legislative and quasi-judicial
1. CIR’s interpretation of tax laws, is an exercise of its quasi-legislative
functions. It is subject to the review of the Secretary of Finance.
2. CIR’s power to decide tax assessments, refunds of internal revenue
taxes, fees, other charges, and penalties imposed thereto, is an exercise
of its quasi-judicial functions. These are subject to the review of Court
of Tax Appeals.
Delegation of Power by the CIR:
1. What CAN be delegated:
a. Powers vested in him by the tax code to subordinate officials with
the rank equivalent to a division chief or higher.
2. What CANNOT be delegated:
a. The power to recommend the promulgation of rules and regulations
by the Secretary of Finance.
b. The power to issue rulings of that impression or to reverse, revoke,
or modify any existing ruling of the BIR.
c. The power to compromise or abate any tax ability under Section
204 (A) and (B), Tax code.
d. The power to assign or reassign internal revenue officers to
establishments where articles subject to excise taxes are produced
or kept.
Power to compromise or abate, assessments in (b)
Invocable if the basic deficiency is 500,000 or less or if it is a minor criminal
offense discovered by regional and district officials may be compromised by
Regional Evaluation Board.
COURT OF TAX APPEALS
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The Court of Tax Appeals (CTA) was created on June 16, 1954, through the
enactment of RA 1125
It was composed of one (1) Presiding Judge and two (2) Associate judges
It had limited jurisdiction and was considered a quasi-judicial tribunal
Appeal of the decisions and resolutions of the CTA through the Court of
Appeals the to Supreme Court.
Creation and Formation:
1. RA 9282
CTA is now in the same level as Court of Appeals which means its
decisions are applicable directly to Supreme Court.
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Increased the composition to one (1) Presiding Justice and five (5)
Associate justices
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The CTA may sit en banc or in two (2) divisions, each division
consisting of three (3) Justices.
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Expanded the jurisdiction of the CTA.
2.
RA 9503
Increased the composition to one (1) Presiding justice and eight (8)
Associate Justices
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The CTA may sit en banc or in three (3) divisions, such division
consisting of three (3) Justices.
Jurisdiction of CTA (Same with CTA Divisions):
1. Exclusive appellate jurisdiction to review decisions, orders, or
resolutions of the following judicial/ quasi-judicial agencies:
a. Collector of Internal Revenue regarding:
1. Disputed assessments,
2. refunds of internal revenue, taxes, fess, or other charges,
penalties imposed in relation there to or;
3. other matters arising under the NIRC or other law or part of the
law by the BIR;
b. Commissioner of Customs in cases involving:
1. Liability for customs duties, fees, or other money charges:
seizure, detention or release of property affected fines,
forfeitures or
2. other penalties imposed in relation other law or part of law
administered by the Bureau of Customs.
c. Central Board of Assessment Appeals
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In classes involving the assessment and taxation of real
property originally decided by provincial or city board of
assessment appeals.
d. Regional Trial Court
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In local tax cases originally decided by them in the exercise of
their original jurisdiction.
e. Secretary of Finance
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On customs cases automatically reviewed by him, which were
adverse to the Government under the tariff and customs code.
f. Secretary of Trade and Industry
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In case of non-agricultural products, commodity, article (PCA)
g.
Secretary of Agriculture
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In case of agricultural PCA, involving dumping and countervailing duties.
the Metropolitan Trial Courts (MeTC), Municipal Trial Courts
(MTC) and Municipal Circuit Trial Courts.
Inaction by the CIR
a. CTA shall assume appellate jurisdiction for cases regarding disputed
assessments, refunds of internal revenue taxes, fees, charges, and
penalties related thereto NOT ACTED UPON by the CIR within 180 days.
b. If the petitioner opted to wait for the decision of the CIR beyond the
180- day period, may still appeal his case to the CTA
c. Inaction by the CIR after 180- day period shall be deemed a denial for
the purposes of allowing the petitioner to appeal go his case before the
CTA. It is not a formal denial.
Exception to 1a
The Regular courts shall exercise original jurisdiction and not the CTA in the
following cases:
1. Offenses and felonies where the principal amount exclusive of charges
and penalties amounts to less than 1,000,000 PHP or
2. When there is no specified amount claimed.
File Petition for Review in case of erroneous/ illegal collection
In case of erroneous or illegal collection by the, the taxpayer MUST file a
PETITION FOR REVIEW within the 2-year period prescribed by the NIRC.
Both RTC and CTA have original jurisdiction to pass upon
constitutionality of tax law provision. But between the two only the RTC
has jurisdiction to decide on the validity of a tax law’s interpretation.
British Tobacco vs. Camacho- RTC and CTA both have jurisdiction over petitions
assailing the constitutionality or validity of a tax provision.
CIR vs. CTA and Petron Corporation- If the resolution of a petition would
necessarily involve the validity or constitutionality of the CIR’s interpretation of
a tax provision, CTA has no jurisdiction to take cognizance of such petition,
because acts of the CIR or the CoC in the exercise of their quasi-legislative
powers are subject to review by the Secretary of Finance and ultimately by the
regular courts.
Banco de Oro vs. Republic – Except for local taxes, petitions assailing the validity
or constitutionality of a tax law, regulation or administrative issuance may be
directly filed before the Court of Tax Appeals (CTA).
Meaning of ‘other matters arising under the NIRC or other law’
CIR vs. CTA and Petron Corporation- Should be understood as pertaining to those
matters directly related to “disputed assessments, refunds of internal revenue
taxes, fees or other charges.
CTA Jurisdiction over cases involving criminal offenses:
1. Exclusive original jurisdiction
a. All criminal offenses arising from violations of the NIRC or TCC and
other laws administered by the BIR or the BoC
2. Exclusive appellate jurisdiction
a. Over appeals from the judgments, resolutions, and orders (JRO) of
the Regional Trial Court (RTC)
1. In tax cases originally decided by them, in their respected
territorial jurisdiction.
2. In petitions for review decided by them in the exercise of their
appellate jurisdiction over the tax cases originally decided by
In such cases CTA will only exercise appellate jurisdiction.
Civil action and Criminal action cannot be separately instituted
Criminal action and Civil action for recovery of civil liability of recovery of taxes
and penalties shall be, always jointly instituted. No right to reserve the filing of
a civil action separate from the criminal action shall be recognized.
Jurisdiction over tax collection cases
1. Exclusive original jurisdiction
a. Over tax collection cases involving final and executory assessments
for taxes, fees, charges, and penalties equal or exceeding 1,000,
000 PHP.
2. Exclusive appellate jurisdiction
a. Over appeals from the judgments, resolutions, and orders (JRO) of
the Regional Trial Court (RTC)
1. In tax cases originally decided by them, in their respected
territorial jurisdiction.
2. In petitions for review decided by them in the exercise of their
appellate jurisdiction over the tax cases originally decided by
the Metropolitan Trial Courts (MeTC), Municipal Trial Courts
(MTC) and Municipal Circuit Trial Courts.
Exception:
1. Where the principal amount exclusive of charges and penalties amounts
to less than 1,000,000 PHP or
2. When there is no specified amount claimed.
In such cases CTA will inly exercise appellate jurisdiction and it’s the regular
courts (MTC, MeTC, MCTC, RTC) who shall assume original jurisdiction.
Jurisdiction of CTA En Banc:
In the exercise of its appellate jurisdiction CTA En Banc may review Decisions,
Resolutions, Orders, of the following judicial/quasi-judicial agencies:
1. CTA Divisions (for Motions for Reconsideration and New Trial)
a. Over Tax collection cases decided by the CTA in its original
jurisdiction.
b. In the exercise of its appellate jurisdiction over:
i. Cases from administrative agencies- BIR, BoC. DoF, DTI, DA
ii. Local tax cases decided by the RTC in the exercise of their
original jurisdiction
iii. Tax collection cases decided by the RTC involving final and
executory assessments for taxes fees, charges, and penalties,
iv.
2.
3.
where the principal amount of taxes and penalties is less than
1,000,000 PHP.
Criminal offenses arising from violations of NIRC, TCC and other
laws administered by the BIR or BoC, decided by it in their
exclusive original jurisdiction.
Regional Trial Court (RTC)
a. Over Local tax cases decided by it in the exercise of
jurisdiction
b. Over Tax collection cases decided by it in the exercise
jurisdiction.
c. Criminal offenses arising from violations of NIRC, TCC
administered by the BIR or BoC, decided by it in
jurisdiction.
REGIONAL TRIAL COURT (RTC)
2.
their appellate
RTC in the exercise of its appellate jurisdiction
SUPREME COURT
of its appellate
CTA EN BANC
and other laws
their appellate
REGIONAL TRIAL COURT (RTC)
Central Board of Assessments Appeals
a. Over cases involving the assessment and taxation of real property
originally decided by provincial or city board of assessment appeals.
MeTC, MTC, MCTC
JURISDICTIONAL FLOW:
3.
For Civil Cases:
SUPREME COURT
SUPREME COURT
CTA EN BANC
CTA EN BANC
CBAA
CTA DIVISION
DECISION/INDECISION OF THE CIR or;
DECISIONS OF:
1. Commissioner of Customs
2. Secretary of Finance
3. Secretary of Trade and Industry
4. Secretary of Agriculture
Local Tax cases
1. RTC in the exercise of its original jurisdiction
Real Property Taxes cases:
LBAA
4.
In both Criminal cases and Tax collection cases:
Where the principal amount of taxes and fees, exclusive of charges
and penalties greater than or equal to 1,000,000 PHP
SUPREME COURT
CTA EN BANC
SUPREME COURT
CTA DIVISION
CTA EN BANC
CTA DIVISION
Where the principal amount of taxes and fees, exclusive of charges
and penalties less than 1,000,000 PHP or no amount specified.
SUPREME COURT
CTA EN BANC
CTA DIVISION
REGIONAL TRIAL COURT (RTC)