) 
7 JUL -3 ?2::.:!) 
14“’ CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
f, 
SENATE 
RECE4VEO %!’ 
’ ’ I 
S.B. NO. 
801 
L.,. , 
., 
Introduced by Senator Ramon Bong Revilla, Jr. 
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 ofthe Court @Tax Appeals to 
include the following: 
(1) Criminal offenses under the National Internal Revenue Code and Tariff and 
(2) Civil Action for collection and recovery and duties which has attained finality. 
(3) Review decisions rendered by the Trial Courts in local tax cases. 
(4) CTA En Banc review of decisions of the Central Board Assessment. Appeals 
(5) CTA En Banc review of decision of a Division of the Court 
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. 
Customs Code; 
involving real property cases, and 
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 welI. 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 i s  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 
9f- 
REVILLA, JR. 


Introduced by Senator Ramon Bong Revilla, Sr. 
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 ofRepresentatives ofthe Philippines in Congress 
assembled: 
SECTION 1. Section 1 of Republic Act No. 1125, as amended is hereby read as 
follows; 
“SECTION 1. CoJcrt; Justices; Qualifications; Salary; Tenure.- There is hereby 
created a Court of Tax Appeals (CTA) which shall he 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 he 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 hear 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 
SECTION 2. Section 2 of the same Act is hereby amended to read as follows: 
“SEC. 2. Sitting En Bane or Division; quorum, Proceedings.- The CTA may sit en 
bane 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)] PlvE (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 1 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 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. 
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,