civil aspect of a tax case

7/26/2019 Civil Aspect of a Tax Case

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Civil Aspect

Jurisdiction/Venue/Modesof Appeal/Stages in Civil

Action



What is a Civil Action?

• is one by which a party sues

another for the enforcement orprotection of a right, or theprevention or redress of a wrong;

• may either be ordinary or special;



Existing Laws

• R.A 1125 – Creation of TaAppeals

• R.A !2"2 – #pansion of t$e

%urisdiction of t$e CTA&A.M. 'o. (5&11&()&CTA

• +ATAS ,AM+A'SA +lg. 12!

• Rules of Court

• '-R Code

& Sec. 2(5 0

&Sec. 222 a0



!usrisdiction

#C3S-V#/4R--'A6,rincipal a7ount of taes and

fees8 #C3S-V# of c$arges

#C3S-V#/A,,#AT#6;ecisions and <nal orders ofMeTC/MTC/MCTC

#C3S-V#/4R--'A6,rincipal a7ount of taes andfees8 #C3S-V# of c$argesand penalties8 clai7ed eceed

9((:

MTC

RTC

CTA

#C3S-V#/A,,#AT#6 1. 4ver %udg7ents of t$e RTC sitting in itsoriginal %urisdiction

2. 4ver petitions for revie= of %udg7ents of t$e RTC in t$e eerciseof its appellate %urisdiction

#C3S-V#/4R--'A6 Ta collectioncases involving >-'A A';

##C3T4R? assess7ents for taes8fees8 c$arges and penaltiesa7ounting to at least 1M



MT

C

RTC

CTA

SC

Rule "#



Venue6

1.,lainti@s residenceB

2.;efendants residenceB

9. 'on&resident – =$ere $e 7a e found

Din ot$ cases8 at t$e election of t$eplainti@

CEAV#F6

&+-R 'ational 4Gce8 Revenue Regional4Gce8 or Revenue ;istrict 4Gce $as itsprincipal place of usinessB

& ,rincipal place of usiness of t$e

tapaer



$odes of Appeal

• 4rdinar Appeal – <ling ofnotice of appeal =it$ t$e court

t$at rendered %udg7ent (Rule 40);

• ,etition for revie= – <ling of a

veri<ed petition for revie=(Rule 43);

• Certiorari – <ling a petition forrevie= on certiorari Rule 45



Action

Complaint

%ummons

Answer

&re'trial

(rial

!udgment

Motion forReconsideration or 'e= Trial

&etitionfor

)eview

Appeal to%C



1. Co7plaint

• >iling of t$e co7plaint t$e+-R and s$all6

&contain allegations s$o=ing %urisdiction of t$e Court and aconcise state7ent of t$e co7plete

facts of t$e plainti@s causes ofactionB

&veri<edB

&certi<cation against foru7



2. Su77ons

Modes of service6

1.,ersonalB

2.SustitutedB9.,ulicationB

,urpose6

H. Confer Jurisdiction5. 'otif defendant



9. Ans=er

• Iit$in 15 das after service ofsu77ons8 respondent s$all <le anans=er to t$e petition

D47nius Rule – =$en a pleading8 %udge7ent or order is attaced8 allo%ections s$ould e included8 allot$er o%ections not t$erein includeds$all e dee7ed =aived.

D>ailure to ans=er – no dis7issalBdefendant s$all e declared in default

upon 7otion of palinti@



H. ,re&trial• ,re&trial rief – parties s$all su7it at least

9 das efore pre&trial

• >ailure to appear

D,lainti@/+-R & dis7issal on t$e ground of

failure to prosecuteDTapaer/defendant – present evidence eparteB court =ill render %udg7ent on t$easis t$ereof

•

Mandator• ,arties are not allo=ed to co7pro7ise

cri7inal liailit

• Setting of earlier date – urgenc of t$e

caseB 7ust e stated in t$e pleading



5. Trial

•

Procedure. – T$e Court s$all conduct t$e trialin accordance =it$ Rule 9( of t$e Rules ofCourt in civil cases and Rule 11! t$ereof incri7inal cases.

• Power of the Court to receive evidence. – T$eCourt 7a receive evidence in t$e follo=ingcases6

a0 -n all cases falling =it$in t$e original %urisdiction of t$e Court in ;ivision pursuant to

Section 98 Rule H of t$ese RulesB and0 -n appeals in ot$ civil and cri7inal cases

=$ere t$e Court grants a ne= trial pursuant toSection 28 Rule 59 and Section 128 Rule 12H oft$e Rules of Court.



• Appointment of independentCertied Public Accountant (CPA). + A

party desiring to present voluminousdocuments in evidence before theCourt may secure the services of an

independent certied &ublicAccountant -C&A. at its own expense/

(he Court shall commission the latteras an o0cer of the Court solely forthe purpose of performing such auditfunctions as the Court may direct/



• Findings of independent CPA. + (hesubmission by the independent C&A of pre'

mar1ed documentary exhibits shall besub2ect to verication and comparison withthe original documents, the availability ofwhich shall be the primary responsibility of

the party possessing such documents and,secondarily, by the independent C&A/ (hendings and conclusions of theindependent C&A may be challenged by the

parties and shall not be conclusive uponthe Court, which may, in whole or in part,adopt such ndings and conclusionssub2ect to verication/



K. Judg7ent

• )endition of !udgment + consultation by themembers on the merits of the case

• 3orm of decision + shall be in writing

•

&romulgation and notice of decision + (he cler1 ofcourt shall have the direct responsibility for thepromulgation of the decision

• Entry of !udgement + 4f no appeal, motion for

reconsideration or new trail is led, the cler1 ofcourt shall enter the 2udgment in the boo1 of

2udgment and shall become nal and executory

• Execution + execution shall issue as a matter of right



). Motion forReconsideration/'e= Trial

• Any aggrieved party may see1 areconsideration or new trial by ling amotion within 5# days from the date he

received notice of the decision;• 6pposition + within 57 days after his receipt

of the copy of the motion;

• 8eating of motion + next available motionday

• E9ect of ling motion + shall suspend therunning of the period within which an appeal

may be perfected



rounds for 'e= Trial

• 3A$E

• :ewly discovered evidence

• Applicability of 6mnibus $otion )ule

•

$ust conform to the prescribed form'shall be in writing

'supported by a0davits of merits and witnesses

• :on'compliance shall be deemed pro forma which

shall not toll the reglementary period for appeal• :o ling of a nd motion for reconsideration

• &eriod of ruling + < months from the time it isdeemed submitted



". ,etition for Revie= =it$ t$eCTA en anc

• An adverse party a9ected by aresolution of a =ivision of a C(A on a

motion for reconsideration or newtrial may within 5# days appeal tothe C(A en banc;

• %ame with complaint;

• Clearly legible duplicate original orcertied true copy of the decisionappealed from shall be attached tothe etition



!. Appeal to t$e SC

• >eried petition for review oncertiorari within 5# days from receiptof a copy of the decision -)ule "#.;

• E9ect of Appeal ' the motion forreconsideration or new trial beforethe C(A shall be deemed abandoned

during its pendency



Cases

• A=A$%6: >%/ CA .R. 'o. 12(!95

)A @expanded the 2urisdiction of theC(A/ 8owever, they did not change the

2urisdiction of the C(A to entertain an appealonly from a nal decision or assessment of theCommissioner, or in cases where theCommissioner has not acted within the period

prescribed by the :4)C/ 4n the cases at bar,the Commissioner has not issued anassessment of the tax liability of privaterespondents/



• City of $anila vs/ Cuerdo .R. 'o. 1)5)29>eruar H8 2(1H

&&etitioners availed of the wrong remedy when they ledthe instant special civil action for certiorari under )ule# of the )ules of Court in assailing the )esolutions ofthe CA which dismissed their petition led with thesaid court and their motion for reconsideration of such

dismissal/ (here is no dispute that the assailed)esolutions of the CA are in the nature of a nal orderas they disposed of the petition completely/ 4t issettled that in cases where an assailed 2udgment ororder is considered nal, the remedy of the aggrieved

party is appeal/ 8ence, in the instant case, petitionershould have led a petition for review on certiorariunder )ule "#, which is a continuation of the appellateprocess over the original case/



• while it is clearly stated that the C(A has exclusive appellate 2urisdiction over decisions, orders or resolutions of the )(Cs in localtax cases originally decided or resolved by them in the exercise of

their original or appellate 2urisdiction, there is no categoricalstatement under )A 55# as well as the amendatory )A @,which provides that th e C(A has 2urisdiction over petitions forcertiorari assailing interlocutory orders issued by the )(C in localtax cases led before it/

• (he prevailing doctrine is that the authority to issue writs of

certiorari involves the exercise of original 2urisdiction which must beexpressly conferred by the Constitution or by law and cannot beimplied from the mere existence of appellate 2urisdiction

• it can be fairly interpreted that the power of the C(A includes thatof determining whether or not there has been grave abuse of

discretion amounting to lac1 or excess of 2urisdiction on the part ofthe )(C in issuing an interlocutory order in cases falling within theexclusive appellate 2urisdiction of the tax court/ 4t, thus, follows thatthe C(A, by constitutional mandate, is vested with 2urisdiction toissue writs of certiorari in these cases/



• (hus, the Court agrees with theruling of the CA that since appellate

2urisdiction over private respondentsB

complaint for tax refund is vested inthe C(A, it follows that a petition forcertiorari see1ing nullication of an

interlocutory order issued in the saidcase should, li1ewise, be led withthe same court/

civil aspect of a tax case

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