Republic of the Philippines 
1 
First Regulav Session 
1 
FOURTEENTH CONGRESS 
1 
S E N A T E  
Introduced by Senator FRANCIS G. ESCUDERO 
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 TAX 
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. 
As indicated in the title of Republic Act No. 9282, the jurisdiction of the Court of 
Tax Appeals was expanded, defined in Section 7 thereof to include, infer alia, the 
following: 
1. 
Tax Collection cases; 
2. 
3. 
4. 
5. 
Criminal offenses under the National Internal Revenue Code and Tariff 
Review of decisions rendered by the Regional Trial Courts in Local Tax 
CTA En Banc review of decision of a Division of the Court; 
CTA En Banc review of decisions of the Central Board of Assessment 
and Customs Code, including the civll action for recovery of taxes and duties; 
Cases; 
Appeals involving real property cases. 
As a direct consequence of the expansion of its jurisdiction, the number of cases 
filed with the Court has risen sharply. In fact, a total of 179 new cases have already been 
filed from January up to June of the current year or within a sixth month period only. 
The figure shows a very signlficant increase in the number of new cases filed when 
compared with the number of filed cases in the previous years, to wit: 291 for 2006; 407 
for 2005; 357 for 2004; 265 for 2003; 212 for 2002; 158 for 2001 and 228 for the year 2000. 
Concomitant with the deluge of new cases filed will be 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 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 Mewise 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 or 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 a 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 possibdity 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. 
It may also be worthwhile to mention that the original authors of the law, 
Republic Act No. 9282, had introduced in House Bill Nos. 854,2862 and 5044, authored 
by Representatives Aleta C. Suarez, Marcelino C. Libanan and Exequiel B. Javier, 
respectively, a three (3) Division composition of the Court of Tax Appeals. This version 
of the House in the last Congress was likewise endorsed favorably by the Supreme 
Court. It was in the Senate that the two (2) Division version was introduced primarily 
for reason of cast-saving, but for reasons stated above, the need to create a new Division 
is indispensable. 
Moreover, House Bill No. 4514 introduced by the Honorable Exequiel B. Javier 
during the First Regular Session of the Thirteenth Congress, which embodied the full 
content of this proposed House Bill, was approved by the Committee on Justice and 
Committee on Appropriations and reached second reading but unfortunately was not 
passed because of time constraints due to the May 14,2007 elections. 
In view of the foregojng, the early approval of this bill is recommended, 
FRANCIS 4 
G. ESCUDERO 
2 


Republic of the Philippines 
1 
First Regular Session 
1 
FOURTEENTH CONGRESS 
} 
S E N A T E  
Bill No. - 
1485 
Introduced by Senator FRANCIS G. ESCUDERO 
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 House of Representatives of the Philippines in Congress 
assem bled: 
SECTION 1. Section 1 of Republic Act No. 1125, as amended, is hereby further 
amended to read as follows: 
"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 Dustice] 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." 
"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 is hereby amended to read as follows: 
“SEC. 2. Sitting En Banc w 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 (PZO,OOO,OOO.OO) 
necessary to cany 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. 
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. 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. 
SEC. 6. Efecfi7ify Clause. - This Act shall take effect after fifteen (15) days 
following its publication in at least two (2) newspapers of general circulation. 
Approved, 
2