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IS 
FOURTEENTH CONGRESS OF THE 
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First Regular Session 
) 
REPUBLIC OF THE PHILIPPINES 
) 
(In substitution of SB Nos. 801 and 1485) 
Prepared by the Committees with Senators Revilla, Jr. and Escudero as authors thereof. 
AN ACT 
FURTHER EXPANDING THE ORGANIZATIONAL STRUCTURE OF THE COURT OF 
TAX APPEALS, AMENDING FOR THE PURPOSE CERTAIN SECTIONS OF THE LAW 
CREATING THE COURT OF TAX APPEALS, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 1 of Republic Act No. 1125, as amended, is hereby further 
amended to read as follows: 
"SECTION I. 
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, and shall consist of a Presiding Justice and [five (5)] EIGHT (8) 
Associate Justices. The incumbent Presiding Judge and Associate Judges 
shall continue in office and bear the new titles of Presiding Justice and 
Associate Justices. The Presiding Justice and the TWO most Senior 
Associate Justices shall serve as chairmen of the [two (2)] THREE (3) 
Divisions. The additional three (3) Justices and succeeding members of the 
Court shall be appointed by the President upon nomination by the Judicial 
and Bar Council. The Presiding Justice shall be so designated in his 
appointment, and the Associate Justices shall have precedence 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 
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subject to the same inhibitions and disqualifications, and enjoy the same 


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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, such increases in salaries 
shall be deemed correspondingly extended to and enjoyed by the Presiding 
Justice and Associate Justices of the CTA. 
"The Presiding Justice and Associate Justices shall hold office during 
good behavior, until they reach the age of seventy (70), or become 
incapacitated to discharge the duties of their office, unless sooner removed 
for the same causes and in the same manner provided by law for members of 
the judiciary of equivalent rank." 
SEC. 2. Section 2 of the same Act, as amended, is hereby further amended to read as 
follows: 
"SEC. 2. Sifting En Banc or Division; Quorum; Proceedings. - The CTA 
may sit en banc or in [two (2)] THREE (3) Divisions, each Division consisting 
of three (3) Justices. 
"[Four (4)] FIVE (5) Justices shall constitute a quorum for sessions en 
banc and two (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 other lawful cause, the Presiding Justice shall 
designate any Justice of other Divisions of the Court to sit temporarily therein. 
"The affirmative votes of [four (4)] FIVE (5) members of the COURT EN 
BANC SHALL BE NECESSARY TO REVERSE A DECISION OF A DIVISION 
BUT A SIMPLE MAJORITY OF THE JUSTICES PRESENT NECESSARY 
TO PROMULGATE A RESOLUTION OR DECISION IN ALL OTHER CASES 
or two (2) members of a Division, shall be necessary for the rendition of a 
decision or resolution IN THE DIVISION LEVEL." 
SEC. 3. Appropriations. - The amount of Twenty Million Pesos (P20,000,000.00) 
necessary to carry out the provisions of this Act shall be appropriated immediately to be 
generated from whatever source that are available in the National Treasury, based on a 
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special supplemental budget to be submitted to Department of Budget and Management 
(DBM) which shall not exceed the herein appropriation. 
SEC. 4. Repealing Clause. - All laws, executive orders, executive issuances or letter of 
instructions, or any part thereof, inconsistent with or contrary to the provisions of this Act 
are hereby deemed repealed, amended or modified accordingly. 
SEC. 5. Sepambilify Clause. - If for any reason, any section or provision of this Act shall 
be declared unconstitutional or invalid, the other parts thereof not affected thereby shall 
remain valid. 
SEC. 6. Effecfivity Clause. - This Act shall take effect after fifteen (15) days following its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
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