Court of Tax Appeals

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 Jurisdiction
Exclusive Appellate Jurisdiction Over Civil Tax Cases (En Banc)

(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:
(1) Cases arising from administrative agencies – Bureau of Internal Revenue, Bureau of Customs, Department of
Finance, Department of Trade and Industry, Department of Agriculture;
(2) Local tax cases decided by the Regional Trial Courts in the exercise of their original jurisdiction; and
(3) Tax collection cases decided by the Regional Trial Courts in the exercise of their original jurisdiction involving final
and executory assessments for taxes, fees, charges and penalties, where the principal amount of taxes and penalties
claimed is less than one million pesos;
(b) Decisions, resolutions or orders of the Regional Trial Courts in local tax cases decided or resolved by them in the
exercise of their appellate jurisdiction;
(c) Decisions, resolutions or orders of the Regional Trial Courts 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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Jurisdiction
Exclusive Appellate Jurisdiction Over Civil Tax Cases (En Banc)

(e) Decisions of the Central Board of Assessment Appeals (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 National Internal Revenue Code or the Tariff and Customs Code and other laws
administered by the Bureau of Internal Revenue or Bureau of Customs;
(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 Regional trial Courts in the exercise of their appellate jurisdiction
over criminal offenses mentioned in subparagraph (f). (Sec. 2 Rule 4, A.M. No. 05-11-07-CTA)

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Jurisdiction
Exclusive Appellate Jurisdiction Over Civil Tax Cases (Division)

(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 matters arising under
the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue;
(2) Inaction by 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 matters arising under
the NIRC
(3) Decisions, resolutions or orders of the Regional Trial Courts in local tax case decided or resolved by
them in the exercise of their original 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 of 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
Exclusive Appellate Jurisdiction Over Civil Tax Cases (Division)

(5) Decisions of the Secretary of Finance on customs cases elevated to him automatically for review from
decisions of the Commissioner of Customs adverse to the Government under Section 2315 of the
Tariff and Customs Code; and
(6) 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

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Jurisdiction
Criminal Cases – Exclusive Original Jurisdiction

EXCLUSIVE ORIGINAL JURISDICTION over all criminal offenses arising from violations of the National
Internal Revenue Code or Tariff and Customs Code and other laws administered by the Bureau of Internal
Revenue or the Bureau of Customs.

Exception: That offenses or felonies where the principal amount of taxes and fees, 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 regular Courts and the jurisdiction of the CTA shall be appellate.

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Jurisdiction
READ

City of Manila vs. Hon. Cuerdo, GR No. 175723, February 4, 2014

Philamlife vs. Secretary of Finance, GR No. 210987, November 24, 2014
Pilipinas Total Gas, Inc. Vs. CIR, G.R. 207112. Dec. 8, 2015
CIR v. Kepco Corp. G.R.199422, June 21, 2016
Tridharma Marketing v. CTA and BIR, GR 215950, June 20, 2016

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Local Business Tax

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Article X, Section 5, 1987 Constitution

Each local government unit shall have the power to create its own
sources of revenues and to levy taxes, fees, and charges subject to
such guidelines and limitations as the Congress may provide, consistent
with the basic policy of local autonomy. Such taxes, fees, and charges
shall accrue exclusively to the local governments.

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 Fundamental Principles

(a) Taxation shall be uniform in each local government unit;

(b) Taxes, fees, charges and other impositions shall:
(1) be equitable and based as far as practicable on the taxpayer's ability to pay;
(2) be levied and collected only for public purposes;
(3) not be unjust, excessive, oppressive, or confiscatory;
(4) not be contrary to law, public policy, national economic policy, or in the restraint of trade;
(c) The collection of local taxes, fees, charges and other impositions shall in no case be let to any
private person;
(d) The revenue collected pursuant to the provisions of this Code shall inure solely to the benefit of,
and be subject to the disposition by, the local government unit levying the tax, fee, charge or
other imposition unless otherwise specifically provided herein; and,
(e) Each local government unit shall, as far as practicable, evolve a progressive system of taxation.

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Taxes that may be imposed by provinces
(Sec. 134-141, LGC)

(a) Tax on Transfer of Real Property Ownership

(b) Tax on Business of Printing and Publication
(c ) Franchise Tax
(d) Tax on Sand, Gravel and Other Quarry Products
(e ) Professional Tax
(f) Amusement Tax
(g) Annual Fixed Tax on Delivery Truck or Van

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Amusement Tax

"Amusement Places" include theaters, cinemas, concert halls, circuses and other
places of amusement where one seeks admission to entertain oneself by seeing
or viewing the show or performances (Section 131 (c)

Indeed, theaters, cinemas, concert halls, circuses, and boxing stadia are bound by a
common typifying characteristic in that they are all venues primarily for the staging of
spectacles or the holding of public shows, exhibitions, performances, and other events
meant to be viewed by an audience (Alta Vista vs. City of Cebu, G.R. No. 180235. Jan. 20,
2016)

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Amusement Tax

Resorts, swimming pools, bath houses, hot springs and tourist spots cannot be
considered venues primarily “where one seeks admission to entertain oneself by
seeing or viewing the show or performances.” (Pelizloy vs The Province of Benguet,
GR 183137, April 10, 2013)

They are not primarily venues for their proprietors or operators to actively display,
stage or represent shows and/or performances.

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Amusement Tax

Professional basketball games do not fall under the same category as theaters,
cinematographs, concert halls and circuses as the latter basically belong to artistic
forms of entertainment while the former caters to sports and gaming.

In determining the meaning of the phrase “other places of amusement” one must refer
to the prior enumeration of theaters, cinematographs, concert halls and circuses with
artistic expression as their common characteristics.

Philippine Basketball Association vs. CA, GR 119122, Aug. 8, 2000

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Taxes that may be imposed by
municipalities and cities (Sec. 142-143, 151
LGC)

(a) Tax on Business – manufacturer, wholesaler, distributor, contractor, etc

(b) Fees and Charges, such as

(i) Fees for sealing and licensing of weights and measures (Sec.
148)
(ii) Fishery rentals, fees and charges (Sec. 149)

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Taxes that may be imposed by
municipalities and cities (Sec. 142-143, 151
LGC)
The city, may levy the taxes, fees, and charges which the province or municipality
may impose: Provided, however, That the taxes, fees and charges levied and
collected by highly urbanized and independent component cities shall accrue to
them and distributed in accordance with the provisions of this Code.

The rates of taxes that the city may levy may exceed the maximum rates allowed
for the province or municipality by not more than fifty percent (50%) except the
rates of professional and amusement taxes.

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Local Business Tax

LGU renewal of registration – involves payment of the following:

1. Local business tax (LBT)

2. Mayor’s permit fee
3. Sanitary inspection fee, garbage fee, building inspection fee,
electrical inspection fee, mechanical inspection fee, and other
fees and charges imposed by LGUs.

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Local Business Tax

LBT is imposed on the amount of gross

sales or receipts of the business
establishment for the preceding year
using the rates of taxes provided under
Section 143 of the LGC for each type of
business.
Situs rules apply if company maintains
a branch, factory, warehouse, or
plantation in different localities.

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Definition of Gross Sales/Receipts

“Gross Sales or Receipts” include the total amount of

money or its equivalent representing the contract price,
compensation or service fee, including the amount
charged or materials supplied with the services and
deposits or advance payments actually or constructively
received during the taxable quarter for the services
performed or to be performed for another person
excluding discounts, if determinable at the time of sales,
sales return, excise tax and VAT (Section 131(n), LGC).

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 All local taxes, fees, and charges
Deadline of payment shall accrue on the first (1st) day
of January of each year.

The annual local taxes and fees for renewal of

business permits/licenses shall be due on or
before 20th of January of the following year.

Applies to all business If payment was made in installment:

establishments whether
observing calendar or
fiscal
years. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
On or before On or before On or before On or before
January 20 April 20 July 20 October 20

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Situs Rules
Location Tax
1. Where there is a branch or sales Tax is payable to the LGU where the
office or warehouse sales recorded same is located
in said branch or sales office or
warehouse
2. Where there is no such branch, Tax shall accrue to the city or
sales office, or warehouse in the municipality where the principal office
locality where the sale is made the is located
sale shall be recorded in the
principal office

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Situs Rules
Location Tax
3. Where there is a factory, project Thirty percent (30%) of all sales
office, plant or plantation in pursuit recorded in the principal office
of business, taxable by the city or municipality
where the principal office is located

Note: Seventy percent (70%) of all sales

Experimental farms not be entitled to recorded in the principal office
the sales allocation taxable by the city or municipality
where the factory, project office,
plant or plantation is located.

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Situs Rules

Location Tax
4. Plantation and factory are Seventy percent (70%) sales allocation
located in different localities shall be divided as follows:

(i) Sixty percent (60%) to the city or

municipality where the factory is
located; and
(ii) Forty percent (40%) to the city or
municipality where the plantation is
located

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Situs Rules
Location Tax
5. Where there are two (2) or more seventy percent (70%) sales allocation
factories, project offices, plants or prorated among the said localities
plantations located in different
localities -proportionate to volumes of
production during the period for which
Sales allocation shall be applied the tax is due
irrespective of whether or not sales are
made in the locality where the factory,
project office, plant or plantation is
located.

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Penalty for non-filing
Failure to pay local business tax, fees and other charges within the prescribed
deadline:

Subject to 25% surcharge of the amount of taxes fees or charges not

paid on time and 2% interest per month of the unpaid taxes, fees
or charges, including surcharges, but the total amount of interest shall not
exceed 36 months.

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Period to Asess and Collect
Period of Assessment – 5 years from the date they became due

In case of fraud or intent to evade – 10 years from the date of

discovery

Collection – within 5 years from the date of assessment by admin or

judicial action

Running of Prescriptive Period

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Taxpayers’ Remedies
60 days from receipt of Notice of Assessment – file a written protest

Local Treasurer shall decide the protest 60 days from filing

Appeal to court of competent jurisdiction – 30 days from receipt of

denial or from the lapse of the 60-day period

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Taxpayers’ • Appeal to court of competent jurisdiction – 30
days from receipt of denial or from the lapse of the
Remedies 60-day period

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Real Property Tax
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 Fundamental Principles

(a) Real property shall be appraised at its current and fair market value;
(b) Real property shall be classified for assessment purposes on the basis of
its actual use;
(c) Real property shall be assessed on the basis of a uniform classification
within each local government unit;
(d) The appraisal, assessment, levy and collection of real property tax shall
not be let to any private person; and
(e) The appraisal and assessment of real property shall be equitable.

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Real Property Tax

A regular annual ad valorem (a levy determined on the basis of a

fixed proportion to the value of the property) tax on real property
such as lands, buildings, machinery and other improvements.

Machinery shall include those that are attached

permanently or temporarily to the real property and the
unattached ones which are actually, directly, and
exclusively used to meet the needs of the particular
industry, business or activity.

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Real Property Tax
RPT Base: FMV of property x assessment level = assessed value

Rates
of Levy
Province – not City & Municipality –
exceeding 1% of the not exceeding 2% of
assessed value of the assessed value of
real property real property

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Deadline of Real Property Tax
RPT for any year shall accrue on January 1 and from that
date it shall constitute a lien on the property which shall
be superior to any other lien, mortgage, or encumbrance
of any kind whatsoever, and shall be extinguished only
upon the payment of the delinquent tax.

On or before January 31

or

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

On or before On or before On or before On or before
March 31 June 30 September 31 December 31

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Properties Exempt from RPT – Sec. 234, LGC
Real property owned by the RP or any of its political subdivisions EXCEPT when
the beneficial use thereof has been granted, for consideration of otherwise, to
a taxable person;
Charitable institutions, churches, parsonages or convents appurtenant thereto, mosques,
nonprofit or religious cemeteries and all lands, buildings, and improvements actually,
directly, and exclusively used for religious, charitable or educational purposes;

All machineries and equipment that are actually, directly and exclusively used by
Local Water Districts and engaged in the supply and distribution of water and
GOCCs engaged in the generation and transmission of electric power;

All real property owned by duly registered cooperatives as provided for under
R.A. 9520;

Machinery and equipment used for pollution control and environmental

protection.

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Machinery

"Machinery" embraces machines, equipment, mechanical contrivances, instruments,

appliances or apparatus which may or may not be attached, permanently or
temporarily, to the real property. It includes the physical facilities for production, the
installations and appurtenant service facilities, those which are mobile, self-powered or
self-propelled, and those not permanently attached to the real property which are
actually, directly, and exclusively used to meet the needs of the particular
industry, business or activity and which by their very nature and purpose are
designed for, or necessary to its manufacturing, mining, logging, commercial, industrial
or agricultural purposes;
Are underground tanks installed by lessee
considered real property subject to RPT
Taxpayers’ Remedies - RPT
Payment under Protest

Protest in writing shall be filed within 30 days from payment of tax

to the Treasurer

Treasurer shall decide within 60 days from filing thereof

Appeal to the Local Board of Assessment Appeals (LBAA) within 60

days from receipt of denial

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Taxpayers’ Remedies - RPT
LBAA shall decide the appeal within 120 days from receipt of appeal

Appeal to Central Board of Assessment Appeals within 30 days from

receipt of LBAA’s decision

Appeal to CTA En Banc – 30 days

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