Republic Act 9503, or “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,” was signed into law by the President on June 11. The law increases the number of associate justices of the Court of Tax Appeals (CTA) from six to nine to expedite the resolution of tax cases.

The CTA was created under Republic Act 1125, mainly to entrust tax cases to technically qualified men in the field of, or those with specialized knowledge in, taxation; and to help expedite the proper disposition of tax cases. The creation of the CTA is pursuant to the constitutional right that all persons shall have the right to a speedy disposition of their cases before all judicial, quasijudicial or administrative bodies.

Formerly, the CTA’s membership consisted only of a presiding justice and two associate justices. It has jurisdiction “only on decisions, judgments, rulings or inaction of the commissioner of internal revenue, the commissioner of customs, the secretary of finance, the secretary of trade and industry, or the secretary of agriculture, involving the National Internal Revenue Code [NIRC] and the Tariff and Customs Code [TCC] on civil matters.”

Under Republic Act 9282, which amended RA 1125, the CTA was made to sit en banc or in two divisions of three justices each. At the same time, it was elevated to the level of the Court of Appeals, possessing all the inherent powers of a court of justice. RA 9282 also expanded the jurisdiction of the CTA, transferring to it the jurisdiction of the Regional Trial Courts and Court of Appeals over matters involving criminal violations and collection of revenues under the NIRC and TCC. In addition, it also acquired jurisdiction over cases involving local and real property taxes.

With the enactment of RA 9503, the CTA shall now be headed by a presiding justice and eight associate justices, three of whom are yet to be appointed by the President upon the nomination of the Judicial and Bar Council. It may sit en banc with a quorum of five associate justices, or in division with a quorum constituting of at least two associate justices. The law further provided for the creation of a third division composing of three associate justices, with the presiding justice and the two most senior associate justices serving as chairmen of the three divisions.

The affirmative votes of five members of the CTA en banc shall be necessary to reverse a decision of a division, but only a simple majority of the associate justices present is necessary to promulgate a resolution or decision in all other cases. In the division level, at least two members shall be necessary for the rendition of a decision or resolution.

The expansion of the CTA brought about by RA 9503 is good news for both the judicial branch of the government and for party litigants. For the Judiciary, the newly enacted law is expected to strengthen the judicial system and give more teeth to the government’s revenue-collection efforts through the speedy litigation of tax cases.

The need for speedy administration of justice cannot be ignored. Any excessive delay in the disposition of cases renders the rights of people guaranteed by various legislations
inutile. One of the reasons behind the delays in the decision of cases may be the increasing number of litigations filed. Hence, the expansion of the court shall aid in unclogging the court dockets and shall enable the CTA to focus more on each case and resolve disputes fairly and equitably. In order to support the expansion of the CTA to be the paragon of speedy justice, RA 9503 appropriated P20 million to carry out the provisions of the law; the amount will come from the available funds of the National Treasury.

For the government, on the other hand, the increased efficiency in the administration of justice as a consequence of RA 9503 will surely boost government revenue because the CTA handles billions of tax-evasion cases. Last, the expansion shall be beneficial for taxpayers seeking to protect their rights against unreasonable assessments and seizures by speeding up the process of litigation and termination of cases.

As the old saying goes, “Justice delayed is justice denied.” But while the policy of the courts to expedite disposal of cases and prevent clogging of court dockets is desirable, speed in judicial administration should not be promoted at the expense of justice, which is indispensable to the judiciary.

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The author is an associate of BDB Law. If you have any comments or questions concerning the article, you can e-mail the author at pamela.p.palad@bdblaw.com.ph or call 856-2952.

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