DLSU College of Law Atty. Martin Ignacio D.

Mijares
Taxation Law II Second Semester, AY 2017-2018

TODAY

Overview of the Tax Reform for Acceleration and
Inclusion (TRAIN) Law

Rights and Remedies under the Tax Code

Organization and Function of the BIR
TAXATION LAW II
The Court of Tax Appeals

Martin Ignacio D. Mijares 1

Week One – 01/18/2018

TRAIN LAW

The Tax Reform for Acceleration and Inclusion
(TRAIN) is the consolidated version of two bills passed
by Congress:

House Bill No. 5636 passed by the House of
3 TRAIN LAW Representatives on third and final reading on May 31,
2017

Senate Bill No. 1592 approved by the Senate on
November 28, 2017

The TRAIN is the first of five packages of tax reforms
proposed by the Duterte administration

Overview

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DLSU College of Law Atty. Martin Ignacio D. Mijares
Taxation Law II Second Semester, AY 2017-2018

TRAIN LAW

The House of Representatives and the Senate ratified
the Bicameral Committee Report on the TRAIN on
December 13, 2017

President Duterte signed the bill into law on December
19, 2017

Republic Act No. 10963

The President vetoed six (6) provisions of the enrolled bill

The TRAIN Law shall take effect on January 1, 2018
Simpler
FEATURES OF THE LAW Fairer
More efficient

Declaration of Policy

To enhance the progressivity of the tax system through
the rationalization of the Philippine internal revenue tax
system, thereby promoting sustainable and inclusive
growth;

To provide, as much as possible, an equitable relief to a
greater number of taxpayers and their families in order to
improve levels of disposable income and increase
economic activity; and

To ensure that the government is able to provide for the
needs of those under its jurisdiction and care through the
provision of better infrastructure, health, education, jobs,
and social protection for the people

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SIGNIFICANT CHANGES SIGNIFICANT CHANGES

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DLSU College of Law Atty. Martin Ignacio D. Mijares
Taxation Law II Second Semester, AY 2017-2018

SIGNIFICANT CHANGES

10 RIGHTS AND REMEDIES UNDER

THE TAX CODE

Organization and Functions of the

BIR
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TAX ADMINISTRATION AND TAX ADMINISTRATION AND

ENFORCEMENT

Main sources of revenue for the Government

Internal revenue taxes (i.e., income tax, estate tax,
donor’s tax, value-added tax, excise taxes, documentary
stamp tax, and other taxes as may be imposed)

Import duties

Local transfer and business taxes

Real property taxes
ENFORCEMENT

Agencies involved in tax administration

For internal revenue and customs law enforcement

Bureau of Internal Revenue

Bureau of Customs

For local and real property taxes

Provincial, city, and municipal assessors and treasurers

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DLSU College of Law Atty. Martin Ignacio D. Mijares
Taxation Law II Second Semester, AY 2017-2018

POWERS AND DUTIES OF THE BIR

Bureau of Internal Revenue

The main government agency tasked with the collection
of revenues and enforcement of tax laws

It is the largest revenue collection agency of the government,
followed by the Bureau of Customs and Treasury

Tasked to collect almost 70% of the budget requirement of
the Government

It is under the supervision and control of the Department
of Finance
POWERS AND DUTIES OF THE BIR

Powers and duties [Section 2, Tax Code]

Assessment and collection of all internal revenue taxes,
fees, and charges

Enforcement of all forfeitures, penalties, and fines
connected therewith

Execution of judgment in all cases decided in its favor by
the courts

Effecting and administering the supervisory and police
powers conferred to it by the Tax Code and other laws

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POWERS AND DUTIES OF THE BIR POWERS AND DUTIES OF THE BIR

Levels of Authority in the BIR
• Headed by the CIR
Chief Officials of the BIR National Office • 4 deputy
commissioners
Large Taxpayers
Services

• 20 regional offices
Regional Office • Headed by Regional
• Currently 7
divisions Director
• Headed by
ACIR

• 123 revenue district

Revenue District offices
Office • Headed by Revenue
District Officer

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DLSU College of Law Atty. Martin Ignacio D. Mijares
Taxation Law II Second Semester, AY 2017-2018

POWERS AND DUTIES OF THE BIR

Power of the CIR to Interpret Tax Laws and Decide
Tax Cases [Section 4, Tax Code]

The CIR shall have –

The exclusive and original jurisdiction to interpret the
provisions of the Tax Code and other tax laws

Subject to the review by the Secretary of Finance

The 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

Subject to the exclusive appellate jurisdiction of the Court of Tax
Appeals
POWERS AND DUTIES OF THE BIR

Authority to Delegate Power [Section 7, Tax Code]

The CIR may delegate the power vested in him under the
Tax Code to any or such subordinate officials with the
rank equivalent to a division chief or higher

Subject to such limitations and restrictions as may be
imposed under the rules and regulations to be promulgated
by the Secretary of Finance (SoF) upon recommendation of
the CIR

The CIR shall not delegate the following powers:

The power to recommend the promulgation of rules and
regulations by the SoF

The power to issue rulings of first impression or to reverse,
revoke, or modify any existing ruling of the BIR

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POWERS AND DUTIES OF THE BIR

Authority to Delegate Power [Section 7, Tax Code]

The CIR shall not delegate the following powers (cont’d):

The power to compromise or abate any tax liability under
Section 204(A) and (B), Tax Code

Assessments issued by the regional offices involving basic
20 RIGHTS AND REMEDIES UNDER
deficiency taxes of Php500,000 or less, and minor criminal
violations discovered by regional and district officials, may be
THE TAX CODE
compromised by a Regional Evaluation Board

The power to assign or reassign internal revenue officers to
establishments where articles subject to excise taxes are
produced or kept

The Court of Tax Appeals

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DLSU College of Law Atty. Martin Ignacio D. Mijares
Taxation Law II Second Semester, AY 2017-2018

CREATION AND COMPOSITION CREATION AND COMPOSITION

The Court of Tax Appeals (CTA) was created on June
16, 1954, through the enactment of Republic Act (RA)
No. 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 then to the Supreme Court
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RA No. 9282 (March 30, 2004)

Elevated the rank of the CTA to the same level as the
Court of Appeals

Increased the composition to one (1) Presiding Justice
and five (5) Associate Justices

The CTA may sit en banc or in two (2) Divisions, each
Division consisting of three (3) Justices

Expanded the jurisdiction of the CTA

RA No. 9503 (June 12, 2008)

Increased the composition to one (1) Presiding Justice
and eight (8) Associate Justices

The CTA may sit en banc or in three (3) Divisions, each
Division consisting of three (3) Justices
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JURISDICTION JURISDICTION

RA No. 1125
RA No. 1125

Exclusive appellate jurisdiction to review by appeal:
Exclusive appellate jurisdiction to review by appeal

Decisions of the Collector of Internal Revenue in cases (cont’d):
involving disputed assessments, refunds of internal revenue
Decisions of provincial or city Boards of Assessment Appeals
taxes, fees or other charges, penalties imposed in relation in cases involving the assessment and taxation of real
thereto, or other matters arising under the NIRC or other law property or other matters arising under the Assessment Law,
or part of law administered by the BIR; including rules and regulations relative thereto

Decisions of the Commissioner of Customs in cases
involving liability for customs duties, fees or other money
charges; seizure, detention or release of property affected
fines, forfeitures or other penalties imposed in relation
thereto; or other matters arising under the Customs Law or
other law or part of law administered by the Bureau of
Customs; and

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DLSU College of Law
Taxation Law II
JURISDICTION

RA No. 9282
A. Exclusive appellate jurisdiction to review by appeal:
1. Decisions of the CIR in cases involving disputed
assessments, refunds of internal revenue taxes, fees or
other charges, penalties in relation thereto, or other
matters arising under the NIRC or other laws
administered by the BIR
2. Inaction by the CIR in cases involving disputed
assessments, refunds of internal revenue taxes, fees or
other charges, penalties in relations thereto, or other
matters arising under the NIRC or other laws
administered by the BIR, where the NIRC provides a
specific period of action, in which case the inaction shall
be deemed a denial
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JURISDICTION

RA No. 9282
A. Exclusive appellate jurisdiction to review by appeal
(cont’d):
5. Decisions of the Central Board of Assessment Appeals in
the exercise of its appellate jurisdiction over cases
involving the assessment and taxation of real property
originally decided by the provincial or 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 Section 2315 of the Tariff and
Customs Code
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Atty. Martin Ignacio D. Mijares
Second Semester, AY 2017-2018
JURISDICTION

RA No. 9282
A. Exclusive appellate jurisdiction to review by appeal
(cont’d):
3. Decisions, orders or resolutions of the Regional Trial
Courts (RTC) in local tax cases originally decided or
resolved 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 or other money
charges, seizure, detention or release of property
affected, fines, forfeitures or other penalties in relation
thereto, or other matters arising under the Customs Law
or other laws administered by the Bureau of Customs
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JURISDICTION

RA No. 9282
A. Exclusive appellate jurisdiction to review by appeal
(cont’d):
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 RA No. 8800, where either
party may appeal the decision to impose or not to impose
said duties
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DLSU College of Law
Taxation Law II
JURISDICTION

RA No. 9282
B. Jurisdiction over cases involving criminal offenses:
1. Exclusive original jurisdiction over all criminal
offenses arising from violations of the NIRC or TCC
and other laws administered by the BIR or the BoC:

Provided, however, that offenses or felonies where the
principal amount of taxes and fees, exclusive of
charges and penalties, claimed is less than
Php1,000,000.00 or where there is no specified
amount claimed shall be tried by the regular Courts
and the jurisdiction of the CTA shall be appellate
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JURISDICTION

RA No. 9282
B. Jurisdiction over cases involving criminal offenses
(cont’d):
2. Exclusive appellate jurisdiction in criminal offenses:
a. Over appeals from the judgments, resolutions or
orders of the RTC in tax cases originally decided by
them, in their respected territorial jurisdiction
b. Over petitions for review of the judgments, resolutions
or orders of the RTC in the exercise of their appellate
jurisdiction over tax cases originally decided by the
Metropolitan Trial Courts, Municipal Trial Courts and
Municipal Circuit Trial Courts in their respective
jurisdiction
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Atty. Martin Ignacio D. Mijares
Second Semester, AY 2017-2018
JURISDICTION

RA No. 9282
B. Jurisdiction over cases involving criminal offenses:
(cont’d)

Any provision of law or the Rules of Court to the contrary
notwithstanding, the criminal action and the
corresponding civil action for the recovery of civil liability
for taxes and penalties shall at all times be
simultaneously 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 civil action, and no right to reserve the filling of
such civil action separately from the criminal action will
be recognized
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JURISDICTION

RA No. 9282
C. Jurisdiction over tax collection cases:
1. Exclusive original jurisdiction in tax collection cases
involving final and executory assessments for
taxes, fees, charges and penalties

Provided, however, that collection cases where the
principal amount of taxes and fees, exclusive of
charges and penalties, claimed is less than
Php1,000,000.00 shall be tried by the proper
Municipal Trial Court, Metropolitan Trial Court and
Regional Trial Court
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DLSU College of Law
Taxation Law II
JURISDICTION

RA No. 9282
C. Jurisdiction over tax collection cases (cont’d):
2. Exclusive appellate jurisdiction in tax collection
cases:
a. Over appeals from the judgments, resolutions or
orders of the RTC in tax collection cases originally
decided by them, in their respective territorial
jurisdiction
b. Over petitions for review of the judgments, resolutions
or orders of the RTC in the exercise of their appellate
jurisdiction over tax collection cases originally decided
by the Metropolitan Trial Courts, Municipal Trial
Courts and Municipal Circuit Trial Courts, in their
respective jurisdiction
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CASES WITHIN JURISDICTION OF CTA
DIVISION

Rule 4, Section 3, RRCTA

Provided, that in case of disputed assessments, the inaction of
the CIR within the 180-period under Section 228, NIRC shall be
deemed a denial for purposes of allowing the taxpayer to appeal
his case to the Court and does not necessarily constitute a
formal decision of the CIR on the tax case;

Provided, further, that should the taxpayer opt to await the final
decision of the CIR on the disputed assessments beyond the
180 day-period abovementioned, the taxpayer may appeal such
final decision to the Court under Section 3(a), Rule 8, RRCTA;
and

Provided, still further, that in the case of claims for refund of
taxes erroneously or illegally collected, the taxpayer must file a
petition for review with the Court prior to the expiration of the
two-year period under Section 229, NIRC;
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Atty. Martin Ignacio D. Mijares
Second Semester, AY 2017-2018
CASES WITHIN JURISDICTION OF CTA
DIVISION

Rule 4, Section 3, RRCTA

Exclusive original or appellate jurisdiction to review by
appeal the following:

Decisions of the CIR in cases involving disputed
assessments, refunds of internal revenue taxes, fees or
other charges, penalties in relation thereto, or other matters
arising under the NIRC or other laws administered by the
BIR;

Inaction by the CIR in cases involving disputed
assessments, refunds of internal revenue taxes, fees or
other charges, penalties in relation thereto, or other matters
arising under the NIRC or other laws administered by the
BIR, where the NIRC or other applicable law provides a
specific period for action:
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CASES WITHIN JURISDICTION OF CTA
DIVISION

Rule 4, Section 3, RRCTA

Decisions, resolutions or orders of the RTC in local tax cases
decided or resolved by them in the exercise of their original
jurisdiction;

Decisions of the CoC in cases involving liability for customs
duties, fees or other money charges, seizure, detention or
release of property affected, fines, forfeitures or other
penalties in relation thereto, or other matters arising under
the Customs Law or other laws administered by the BoC;

Decisions of the SoF on customs cases elevated to him
automatically for review from decisions of the CoC adverse
to the Government under Section 2315,TCC; and
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DLSU College of Law
Taxation Law II
CASES WITHIN JURISDICTION OF CTA
DIVISION

Rule 4, Section 3, RRCTA

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 Sections 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;
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CASES WITHIN JURISDICTION OF CTA
DIVISION

Rule 4, Section 3, RRCTA

Exclusive jurisdiction over tax collection cases, to wit:

Original jurisdiction in tax collection cases involving final and
executory assessments for taxes, fees, charges and
penalties, where the principal amount of taxes and fees,
exclusive of charges and penalties, claimed is one million
pesos or more; and

Appellate jurisdiction over appeals from the judgments,
resolutions or orders of the RTC in tax collection cases
originally decided by them within their respective territorial
jurisdiction
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Atty. Martin Ignacio D. Mijares
Second Semester, AY 2017-2018
CASES WITHIN JURISDICTION OF CTA
DIVISION

Rule 4, Section 3, RRCTA

Exclusive jurisdiction over cases involving criminal
offenses, to wit:

Original jurisdiction over all criminal offenses arising from
violations of the NIRC or TCC and other laws administered
by the BIR or the BoC, where the principal amount of taxes
and fees, exclusive of charges and penalties, claimed is
Php1 million or more; and

Appellate jurisdiction over appeals from the judgments,
resolutions or orders of the RTC in their original jurisdiction
in criminal offenses arising from violations of the NIRC or
TCC and other laws administered by the BIR or BoC, where
the principal amount of taxes and fees, exclusive of charges
and penalties, claimed is less than Php1 million or where
there is no specified amount claimed;
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CASES WITHIN JURISDICTION OF CTA EN
BANC

Rule 4, Section 2, RRCTA
a. Decisions or resolutions on motions for reconsideration
or new trial of the Court in Divisions in the exercise of its
exclusive appellate jurisdiction over:

Cases arising from administrative agencies — BIR, BoC,
DoF, DTI, DA;

Local tax cases decided by the RTC in the exercise of their
original jurisdiction; and

Tax collection cases decided by the RTC 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 P1 million;
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DLSU College of Law
Taxation Law II
CASES WITHIN JURISDICTION OF CTA EN
BANC

Rule 4, Section 2, RRCTA
b. Decisions, resolutions or orders of the RTC in local tax
cases decided or resolved by them in the exercise of
their appellate jurisdiction;
c. Decisions, resolutions or orders of the RTC in tax
collection cases decided or resolved by them in the
exercise of their appellate jurisdiction;
d. 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 tax
collection cases;
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CASES WITHIN JURISDICTION OF CTA EN
BANC

Rule 4, Section 2, RRCTA
g. Decisions, resolutions or orders on motions for
reconsideration or new trial of the Court in Division in the
exercise of its exclusive appellate jurisdiction over
criminal offenses mentioned in the preceding
subparagraph; and
h. Decisions, resolutions or orders of the RTC in the
exercise of their appellate jurisdiction over criminal
offenses mentioned in subparagraph (f)
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Atty. Martin Ignacio D. Mijares
Second Semester, AY 2017-2018
CASES WITHIN JURISDICTION OF CTA EN
BANC

Rule 4, Section 2, RRCTA
e. Decisions of the CBAA in the exercise of its appellate
jurisdiction over cases involving the assessment and
taxation of real property originally decided by the
provincial or city board of assessment appeals;
f. 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 cases
involving criminal offenses arising from violations of the
NIRC or the TCC and other laws administered by the
BIR or BoC;
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44 THANK YOU.
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