Republic of the Philippines

A.M. No. 05-11-07-CTA             September 16, 2008



Acting on the letter of the Presiding Justice, Court of Tax Appeals, submitting for the consideration and approval of the Court the "Proposed Amendments to the Revised Rules of the Court of Tax Appeals," the Court Resolved to APPROVE the same.

This Rule shall take effect on October 15, 2008 following its publication in two newspapers of general circulation.

September 16, 2008.

Chief Justice
Associate Justice
Associate Justice
Associate Justice
Associate Justice
Associate Justice
Associate Justice
Associate Justice
Associate Justice
Associate Justice
Associate Justice
Associate Justice
Associate Justice
Associate Justice
Associate Justice


Pursuant to the promulgation of the Republic Act No. 9503, An Act Enlarging the Organization 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" on June 12, 2008, the 2005 Revised Rules of the Court of Tax Appeals which was approved by the Supreme Court on November 22, 2005, should now be amended.

SECTION 1. Sections 1, 3, 4, 6(a), 6(b), 6(c), 7 and 8 of Rule 2 are hereby amended to read:


Section 1. Composition of the Court. The Court is composed of a presiding justice and eight (8) associate justices appointed by the President of the Philippines. In appropriate cases, the court shall sit en banc, or in three (3) Divisions of three (3) justices each, including the presiding justice, who shall be the Chairperson of the First Division and the two (2) most Senior Associate Justices shall be served as Chairpersons of the Second Divisions, respectively.(a)

x x x

Sec. 3. Court en banc; quorum and voting. - The presiding justice or, if absent, the most senior justice in attendance shall preside over the sessions of the Court en banc. The attendance of five (5) justices of the Court shall constitute a quorum for its session en banc. The presence at the deliberation and the affirmative vote of five (5) members of the Court en banc shall be necessary to reverse a decision of a decision of a Division but only a simple majority of the justices present to promulgate a resolution or decision in all cases. Where the necessary majority vote cannot be had, the petition shall be dismissed; in appealed cases, the judgement or order appealed from shall stand affirmed; and on all incidental matters, the petition or motion shall be denied. (a)

Sec. 4. The Court Division: quorum and voting. - The Chairperson of the Division or, if absent, the most senior member shall preside over the sessions of the Court in Division . The attendance of at least two (2) justices of the court shall be necessary to constitute a quorum for its sessions in Divisions. The presence at the deliberation and the affirmative vote of at least two justices shall be required for the pronouncement of a judgement or final resolution of the Court Decision. (a)

Sec. 6. Disqualification of justices. -

(a) Mandatory - No justices or other officer or employee of the Court shall intervene, directly or indirectly, in the management or control of any private enterprises which in any way may be affected by the function of the Court. Justices of the Court shall be disqualified from sitting in any case on the same grounds provided under the first paragraph, Section 1, Rule of Court. No person who has once served in the Court either as presiding justice or as associate justices shall be qualified to practice as counsel before the Court for a period of one year from that person's retirement or resignation as such. (a)

(b) Disclosure and consent of parties and lawyers. - A justice disqualified under the first paragraph, Section 1 of Rule 137 of the Rules of Court, may instead of withdrawing from a case proceeding, disclose on the records the parties and lawyers, independently of the justice's participation, all agree in writing that the reason for the inhibitation is immaterial or unsubstantial, the justice may participate in the action or proceeding. The agreement, signed by all parties and lawyers, shall be incorporated in the record of the action or proceeding.

(c) Voluntary. - A justice of the Court may in the exercise of sound discretion, disqualify voluntarily from sitting in a case proceeding for just or valid reasons other than those mentioned above.

A justice of the Court who inhibits from sitting in a case proceeding shall immediately notify in writing the presiding justice and the members of the Division where the said justice belongs. (a)

Sec. 7. Motion to inhibit a justice. - When a motion for inhibition of a justice is filed, the Court, en banc or in Division shall act upon motion. However, if the motion for inhibition is based on a discretionary ground, the Court shall refer the motion to the justice involved for appropriate action (a)

Sec. 8. Disqualification of clerk of court or assistant clerk of court or division clerk of court or assistant division clerk of court. -The disqualification under the first paragraph,Section 1,Rule 137 of the Rules of Court shall likewise apply to the Clerk of Court or Assistant Clerk of Court or Division Clerk of Court or Assistant Division Clerk of Court of this Court insofar as it is relevant to them in the performance of their respective functions and duties.

Such person must immediately notify in writing the Presiding Justice and the members of the Court en banc, or the Chairperson and the Members of the Division, whichever is applicable, stating the grounds and the reasons for inhibition and further indicate the case number and title. The Presiding Justice or Chairperson of the Division may approve the request for inhibition and in such event appoint a temporary Clerk of Court to hear and handle the case.(n)

Section 2. - Section 3(a)(5) of Rule 4 is hereby amended to read:


Sec. 3. Cases within the jurisdiction of the Court in Divisions. -

(a) Exclusive original over or appellate jurisdiction to review by appeal the following:

x x x

(5) Decisions of the Secretary of Finance on customs cases elevated for automatic review from decisions of the Commissioner of Customs adverse to the Government under Section 2315 of the Tariff and Customs Code; and (a)

Section 3. - Sections 4(a),5(b) and 6 of Rule 6 are hereby amended to read:


Sec. 4. Bill of particulars. -

(a) Requirement for bill of particulars. - The Court, on its own initiative or upon motion of either party filed before responding to a pleading or, if no responsive pleading is permitted by these Rules, within ten days after service of the pleading, may order a party to submit a detailed statement of the nature of the claim or defense or of any matter stated in any pleading, which is not averred with sufficient definiteness or particularity. Such order or motion shall point out the defects complained of and the details desired. After service of the bill of particulars or of a more definite pleading, the moving or adverse party may file a responsive pleading within ten days.

x x x

Sec. 5. Answer. -

x x x

(b) Transmittal of records. - The respondent Commissioner of Internal Revenue, Commissioner of Customs, the Secretary of Finance, the Secretary of Agriculture, or the Secretary of Trade and Industry, within ten days after filing an answer, the Chairperson of the Central Board of Assessment Appeals and the presiding judges of the Regional Trial Courts, within ten days from receipt of notice, shall certify and forward to the Court all the records of the case in their possession, with the pages duly numbered, and, if the records are in separate folders, then the folders will also be numbered. If there are no records, such fact shall be manifested to the Court within the same period of ten days. The Court may, on motion, and for good cause shown, grant an extension of time within which to submit the aforesaid records of the case. Failure to transmit the records within the time prescribed herein or within the time allowed by the Court may constitute indirect contempt of court. (a)

Sec. 6. Entry of appearance. - An attorney may enter an appearance by signing the initial pleading. An attorney may later enter an appearance only by filing an entry of appearance with the written conformity of the client.

The initial pleading or entry of appearance must contain the following:

(1) The attorney's specific address, which must not be a Post Office Box number;

(2) The Roll of Attorney's Number;

(3) The date and number of current membership due in the Integrated Bar of the Philippines (IBP) per Official Receipt, or Lifetime Member Number;

(4) The Current Professional Tax Receipt (PTR) number together with date and place of issuance; and

(5) The MCLE certificate number and date of issue, unless exempt.

The attorney or party entering an appearance shall serve a copy of the entry of appearance upon the opposing party. An attorney who appears in open court without previously having filed a written appearance must give the said counsel's business address to the Clerk of Court and file a written appearance within forty-eight hours from such open court appearance. An attorney or party who has filed an appearance and who changes address of record shall notify the Clerk of Court and the adverse party of such change of address, and a separate notice of such change of address shall be filed for each additional case. (a)

Section 4. - Section 4, 5, 6, 7, and 10 of Rule 9 are hereby amended to read:


Sec. 4. Warrant of arrest. - Within ten days from the filing of the information, the Division of the Court to which the case was raffled shall evaluate the resolution of the public prosecutor and its supporting evidence. The Division may immediately dismiss the case if it finds that the evidence on record clearly fails to establish probable cause. If the Division finds probable cause, it shall issue a warrant of arrest signed by the Chairperson of the Division may order the prosecutor to present additional evidence, ex parte, within five days from notice. (a)

Sec. 5. When search warrant may issue. - The Division may issue a search warrant signed by its Chairperson following the requirements of Rule 126 of the Rules of Court. (a)

Sec. 6. Bail, how amount fixed; approval. - The amount of bail to be posted in a case filed with the Court shall be fixed and approved by the Division to which the case is raffled: Provided, however, that where the accused is arrested, detained or otherwise placed in custody outside the Metropolitan Manila area, any judge of the Regional Trial Court of the place where the arrest is made may accept and approve the bail for release of the accused and appearance before the Division to which the case is assigned. The judge who accepted the bail and released the accused shall inform the Division that issued the order of arrest of the action and forward to it the papers relative to the case. (a)

Sec. 7. Conditions of the bail. - The conditions of the bail are that the accused shall appear and answer the complaint or information in the Division of the Court to which it is raffled or transferred for trial and submit the same to its orders and processes. If convicted, and the case is appealed to the Court en banc or to the Supreme Court, the accused will surrender for the execution of such judgement as the Court en banc or the Supreme Court may render; or that, in the event the case is to be tried anew or remanded for a new trial, the same shall appear before the Division to which it may be remanded and submit to its orders and processes. (a)

Sec. 10. Solicitor General as counsel for the People and government officials sued in their official capacity. - The Solicitor General shall represent the People of the Philippines and government officials sued in their official capacity in all cases brought to the Court in the exercise of its appellate jurisdiction. The former may deputize the legal officers of the Bureau of Internal Revenue in cases brought under the National Internal Revenue Code or other laws enforced by the Bureau of Internal Revenue, or the legal officers of the Bureau of Customs in cases brought under the Tariff and Customs Code of the Philippines or other laws enforced by the Bureau of Customs, to appear in behalf of the officials of said agencies sued in their official capacity: Provided, however, such duly deputized legal officers shall remain at all times under the direct control and supervision of the Solicitor General. (a)

Section 5. - Section 1 of Rule 10 is hereby amended to read:


SECTION 1. No suspension of collection of tax, except as herein prescribed. - No appeal taken to the Court shall suspend the payment, levy, distraint, or sale of any property of the taxpayer for the satisfaction of tax liability as provided under existing laws, except as hereinafter prescribed. (a)

Section 6. - Sections 3 and 6(c), of Rule 11 are hereby amended to read:


Sec. 3. Setting for an earlier date. - Where due to the urgency of the case, either party desirea that the pre-trial be set on an earlier date, such party shall so state in the pleading in which event the Clerk of Court shall set the pre-trial on the first available date immediately after the filling of the answer. (a)

x x x

Sec. 6. Procedure in criminal cases.

x x x

(c) During the pre-trial conference

x x x

The Court may impose appropriate sanctions or penalties on the accused or counsel or the prosecutor who does not appear at the pre-trial conference and does not offer an acceptable excuse for the said person's absence and lack of cooperation. (a)

Section 7. - Sections 3, 4, and 5(a) of Rule 12 are hereby amended to read:


Sec. 3. Taking of evidence by a justice. - The Court may motu proprio or upon proper motion, direct that a case, or any issue therein be assigned to one of its members for the taking of evidence, when the determination of a question of fact arises at any stage of the proceedings, or when the taking of an account is necessary or when the determination of an issue of fact requires the examination of a long account. The hearing before such justice shall proceed in all respects as though the same had been made before the Court.

Upon the completion of such hearing the justice concerned shall promptly submit to the Court a written report thereon, stating therein the findings and conclusions. Thereafter, the Court shall render its decision on the case adopting, modifying, or rejecting the report in whole or in part, or the Court may in its discretion, recommit it to the justice with instructions, or receive further evidence. (a)

Sec. 4. Taking of evidence by Court official. - In default or ex parte hearings or in any case where the parties agree in writing the Court may delegate the reception of evidence to the Clerk of Court, the Division Clerks of Court their assistants who are members of the Philippine bar or any Court attorney. The reception of documentary evidence by a Court official shall be for the sole purpose of marking comparison with the original and identification by witnesses of such documentary evidence. The Court official shall have no power to rule on objections shall be resolved by the Court upon submission of exhibits, which objections shall be resolved by the Court upon submission of the report and the transcripts within ten days from termination of the hearing. (a)

Sec. 5. Presentation of voluminous documents or long accounts. - In the interest of speedy administration of justice the following rules shall govern the presentation of voluminous documents or long accounts such as receipts invoices and vouchers as evidence to establish certain facts:

(a) Summary and CPA certification.

x x x

The name of the Certified Public Accountant or partner of a professional partnership of certified public accountants in change must be stated in the motion. The court shall issue a commission authorizing the independent CPA to conduct an audit and, thereafter, testify relative to such summary and certification.

Section 8. - Section 5 of Rule 14 is hereby amended to read:


Sec. 5. Promulgation and notice of decision and resolution. - The Clerk of Court or Deputy Clerk of Court shall have the direct responsibility for the promulgation of the decision and resolution of the Court and shall see to it that such decision and resolution are properly signed by the concurring and dissenting justices and the required certification is duty accomplished.

Promulgation consists of the filing of the decision or resolution with the Clerk of Court or Division Clerk of Court, who shall forth with annotate the date and the time of receipt and attest to it by signing thereon. The Clerk of Court or Division Clerk of Court shall serve notice of such decision resolution upon the parties or their counsel, furnishing them with certified true copies thereof.

In criminal cases originally filed with and decided by The Court in Division , the Chairperson shall cause the decision or resolution to be filed with the Division Clerk of Court in a sealed envelop, who shall schedule its promulgation, giving notice to the prosecution, the accused personally or through bondsman or warden, and counsel requiring their presence at the promulgation.

The promulgation shall consist of the reading by the Division Clerk of Court of the dispositive portion of the decision or resolution in the presence of the accused and a justice of the Division that rendered the same. If the accused is detained, the warden shall produce such person before the Court. However, if the accused is detained outside Metro Manila, the Court having territorial jurisdiction over the place of detention to promulgate the decision or resolution at such place. (a)

Section 9. - Section 1,2, and 5(a), 5(b) of Rule 15 are hereby amended to read:


SECTION 1. Who may and when to file motion. - Any aggrieved party may seek a reconsideration or new trial of any decision, resolution or order of the Court by filing a motion for reconsideration or new trial for fifteen days from the date of receipt of notice of the decision, resolution or order of the Court in question,. (a)

Sec. 2. Opposition. - the adverse party may file an opposition to the motion for reconsideration or new trial within ten days after receipt of a copy of the motion for reconsideration or new trial of a decision, resolution or order of the Court. (a)

Sec. 5. Grounds of motion for new trial. - xxx

(a) Fraud, accident , mistake or excusable negligence which ordinary prudence could not have guarded against and by reason of which the rights of such aggrieved party has probably been impaired: or

(b)Newly discovered evidence, which the party could not, with reasonable diligence, have discovered and produced at the trial and, which if presented, would probably alter the result.

x x x

Section 10. Effectivity Clause. - These Rules shall become effective October 15, 2008 after in two newspaper of general circulation in the Philppines , (n)

Link to A.M. No. 05-11-07-CTA, November 22, 2005

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