THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
6 SEp 25 1 
‘L:;“. 
OF THE PHILIPPINES 
1 
Third Regular Session 
1 
S E N A T E  
A *J 
Senate Bill No. z
t
 
0 
Introduced by Senator Franklin M. Drilon 
EXPLANATORY NOTE 
Presently, the Court of Tax Appeals is composed of six (6) justices sitting 
En Banc or in two (2) divisions consisting of three (3) justices each pursuant to 
Republic Act No. 9282, entitled “An Act Expanding the Jurisdiction of the Court of 
Appeals (CTA), Elevating its Rank to the Level of a Collegiate Court with Special 
Jurisdiction and Enlarging its Membership, Amending for the Purpose Certain 
Sections of Republic Act No. 1125, As Amended, otherwise known as the Law 
Creating the Court of Tax Appeals, And For Other Purposes”, enacted by the 
Twelfth Congress and became effective on April 23,2004. 
Republic Act No. 9282 expanded the jurisdiction of the Court of Tax 
Appeals to include the following: 
Criminal offenses under the National Internal Revenue Code and Tariff 
and Customs Code; 
Civil action for collection and recovery of taxes and duties which has 
attained finality; 
Review of decisions rendered by the Regional Trial Courts in local tax 
cases; 
CTA En Banc review of decisions of the Central Board of Assessment 
Appeals involving real property cases; and 
CTA En Banc review of decision of a Division of the Court; 
1. 
2. 
3. 
4. 
5. 
The original jurisdiction of this Court under Republic Act No. 1125 over 
decisions or inaction of the Commissioner of Internal Revenue and the 
Commissioner of Customs remains, as well as jurisdiction over decisions of the 
Secretary of Finance, the Secretary of Trade and Industry, and Secretary of 
Agriculture, over customs matters, dumping, countervailing and the imposition of 
safeguard duties under Republic Act No. 8800, respectively. 
As a direct consequence of the expansion of its jurisdiction, the number of 
cases filed with the Court has risen sharply. For the year 2005, a total of 408 
cases were filed compared with the number of filed cases in the previous years, 
to wit: 262 for 2003; 209 for 2002; 758 for 2001; and 228 for the year 2000. 
Concomitant with the deluge of new cases filed is the increase in the 
workload on the CTA. It is rather certain that the Tax Court, with its limited 
manpower and resources, will be unable to cope with its overwhelming caseload. 
This unenviable circumstance defeats the laudable objectives of R.A. No. 9282, 
more particularly, the swift disposition of tax cases having in mind that taxes are 
the lifeblood of the government. 


To provide an appropriate remedial measure and for a more efficient and 
capable Tax Court, this bill seeks to amend and revise Republic Act No. 1125, as 
amended by Republic Act No. 9282, by adding a Third Division to the Court of 
Tax Appeals and increasing its membership and manpower complement as well. 
Consequently, the Court of Tax Appeals shall have a total of nine (9) members 
composed of a Presiding Justice and eight Associate Justices sitting En banc or 
in three (3) Divisions with three (3) members each. 
The increase in the number of Divisions is necessitated by the increase in 
the caseload of the Court of Tax Appeals. More cases can be heard 
simultaneously by the three (3) Divisions instead of the present two (2) Divisions. 
The present two (2) Divisions of Court of Tax Appeals are barely able to cope 
with their current caseload. 
The benefit that will be derived from the increase in the membership of the 
Courts is not limited to a faster administration of justice but it would likewise 
ensure the independence of the Court of Tax Appeals affording a fair and just 
disposition of each and every case before it. With the present En Banc 
membership of the Court of Tax Appeals consisting only of six (6) justices, it is 
very difficult for a losing party to a case tried before a CTA Division to obtain a 
reversal when elevated to the CTA En Banc. A decision of a Division is more 
likely to be affirmed in an appeal with the Court En Banc since the members of 
the Division, whose decision is the subject of the appeal, constitutes fifty percent 
(50%) already of the entire membership of the Court En Banc. Only a single vote 
is necessary in order to uphold of affirm the Division's decision whereas a 
reversal will require the affirmative votes of at least four (4) members, possibly 
the votes of the three (3) members who are not members of the Division that 
rendered the judgment plus at least one (1) member of the Division that rendered 
the questioned decision. This is indeed quite a tall order for the appellant. 
Secondly, with the present membership of the Court 
' En Banc consisting 
of six (6) members, there is a distinct possibility of having 
tie or a deadlock (3- 
3) in the resolution of an issue. 
With the proposed addition of three (3) members, the Court En Banc will 
have a total of nine (9) members, thereby obviating the possibility of a tie or 
deadlock in the resolution of an issue. Moreover, the appellant will have a better 
forum composed of six (6) members who did not participate in the rendition of the 
appealed decision and the three (3) members who took part therein. This would 
ensure a greater protection for the rights of the aggrieved party. 
In view of the foregoing, the early approval of this bill is recommended. 
FR 
Senator li 


THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
Third Regular Session 
1 
OF THE PHILIPPINES 
1 
6 YEP 2’ 
:s? 
S E N A T E  
Senate Bill No. - 
2470 
Introduced by Senator Franklin M. Drilon 
AN ACT ENLARGING 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 if enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Section 1 of Republic Act No. 1125, as amended is hereby 
“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, 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 [Justice] Justices shall serve as chairmen of the 
[two (2)] THREE (3) Divisions. The additional [three (3)] SIX (6) 
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 subject to the same inhibitions 
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, such 
increases in salaries shall be deemed correspondingly extended to 
and enjoyed by the Presiding Justice and Associate Justices of the 
CTA. 
further amended to read as follows: 


“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 
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)] THREE (3) Divisions, each Division 
consisting of three (3) Justices. 
“[Four (4)] FIVE (5) ‘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 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 
SHALL BE NECESSARY TO PROMULGATE A DECISION IN ALL 
OTHER CASES or two (2) members of a Division, 1 as the case may be ] 
shall be necessary for rendition of a decision or resolution IN THE 
DIVISION LEVEL.” 
SECTION 3. Appropriations. - The amount of Fifty Million Pesos 
(P50,000,000.00) 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 special supplemental budget to be submitted to DBM which shall 
not exceed the herein appropriation. 
SECTION 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. 
SECTION 5. Separability 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. 
SECTION 6. Effectivity Clause - This Act shall take effect after fifteen (15) days 
following its publication in at least (2) Newspapers of general circulation. 
Approved,