February 14 2019

AN ACT ENHANCING REVENUE ADMINISTRATION AND COLLECTION BY GRANTING AN AMNESTY ON ALL UNPAID INTERNAL REVENUE TAXES IMPOSED BY THE NATIONAL GOVERNMENT FOR TAXABLE YEAR 2017 AND PRIOR YEARS WITH RESPECT TO ESTATE TAX, OTHER INTERNAL REVENUE TAXES, AND TAX ON DELINQUENCIES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::

TITLE I PRELIMINARY PROVISIONS

SECTION 1. Short Title. - This Act shall be known as the "Tax Amnesty Act."

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to protect and enhance revenue administration and collection, and make the country's tax system more equitable, by simplifying the tax compliance requirements. Toward this end, the State shall:

(a) Provide a one-time opportunity to settle estate tax obligations through an estate tax amnesty program that will give reasonable tax relief to estates with deficiency estate taxes;

(b) Broaden the tax base by offering a general tax amnesty for all unpaid internal revenue taxes that will help cleanse, organize, and improve the Bureau of Internal Revenue's database;

(c) Enhance revenue collection by providing a tax amnesty on delinquencies that will minimize administrative costs in pursuing tax case and declog the dockets of the Bureau of Internal Revenue and the courts; and

(d) Provide a more equitable tax system by adopting a comprehensive tax reform program that will simplify the requirements on tax amnesties with the use of simplified forms, and utilization of information technology in broadening the tax base.

SEC. 3. Definition of Terms. - As used in this Act:

(a) Basic tax assessed refers to the latest amount of tax assessment issued by the Bureau of Internal Revenue against the taxpayer, exclusive interest, penalties, and surcharges.

(b) Net estate refers to the gross estate less all allowable deductions as provided in the National Internal Revenue Code of 1997, as amended, or the applicable estate tax laws prevailing at the time of death of the decedent;

(c) Net undeclared estate refers to the difference between the total net estate valued at the time of death and the net estate previously declared with the Bureau of Internal Revenue, if any;

(d) Statement of Assets, Liabilities, and Networth refers to a declaration of the assets, liabilities, and net worth as of December 31, 2017, as follows:

(1) Assets within or without the Philippines, whether real or personal, tangible or intangible, whether or not used in trade or business: Provided, That property other than money shall be valued at the cost at which the property was acquired: Provided, further, That foreign currency assets and/or securities shall be valued at the rate of exchange prevailing as of the date of the Statement of Assets, Liabilities, and Net Worth;

(2) All existing liabilities, which are legitimate and enforceable, secured or unsecured, whether or not incurred in trade or business; and

(3) The networth of the taxpayer, which shall be the difference between the total assets and total liabilities.

(e) Total asset refers to the amount of the aggregate assets whether within or without the Philippines, real or personal, tangible or intangible, or ordinary or capital.

TITLE II ESTATE TAX AMNESTY

SEC. 4. Coverage. - There is hereby authorized and granted a tax amnesty, hereinafter called Estate Tax Amnesty, which shall cover the estate of decedents who died on or before December 31, 2017, with or without assessments duly issued therefor, whose estate taxes have remained unpaid or have accrued as of December 31, 2017: Provided, however, That the Estate Tax Amnesty hereby authorized and granted shall not cover instances enumerated under Section 9 hereof.

SEC. 5. Entitlement Under Estate Tax Amnesty. - Except for instances covered by Section 9 hereof, the estate may enjoy the immunities and privileges of the Estate Tax Amnesty and pay an estate amnesty tax at the rate of six percent (6%) based on the decedent's total net estate at the time of death: Provided, That if an estate tax return was previously filed with the Bureau of Internal Revenue, the estate tax rate of six percent (6%) shall be based on net undeclared estate. The provisions of the National Internal Revenue Code of 1997, as amended, or the applicable estate tax laws prevailing at the time of death of the decedent, on valuation, manner of computation, and other related matters shall apply suppletorily, at the time of the entitlement: Provided, further, That if the allowable deductions applicable at the time of death of the decedent exceed the value of the gross estate, the heirs, executors, or administrators may avail of the benefits of tax amnesty under Title II of this Act, and pay the minimum estate amnesty tax of Five thousand pesos (P5,000).

SEC. 6. Availment of the Estate Tax Amnesty; When and Where to File and Pay. - The executor or administrator of the estate, or if there is no executor or administrator appointed, the legal heirs, transferees or beneficiaries, who wish to avail of the Estate Tax Amnesty shall, within June 15, 2021 until June 24, 2023, file with the Revenue District Office of the Bureau of Internal Revenue, which has jurisdiction over the last residence of the decedent, a sworn Estate Tax Amnesty Return, in such forms as may be prescribed in the Implementing Rules and Regulations. The payment of the amnesty tax shall be made at the time the Return is filed: Provided, That for nonresident decedents, the Estate Tax Amnesty Return shall be filed and the corresponding amnesty tax be paid at Revenue District Office No. 39, or any other Revenue District Office which shall be indicated in the Implementing Rules and Regulations;

Provided, further, That the appropriate Revenue District Office shall issue and endorse an acceptance payment form, in such form as may be prescribed in the Implementing Rules and Regulations of this Act for the authorized agent bank, or in the absence thereof, the revenue collection agent or municipal treasurer concerned, to accept the tax amnesty payment;

Provided, finally, That the availment of the Estate Tax Amnesty and the issuance of the corresponding Acceptance Payment Form do not imply any admission of criminal, civil or administrative liability on the part of the availing estate. (as amended by RA No 11569)

SEC. 7. Presumption of Correctness of the Estate Tax Amnesty Return. - The Estate Tax Amnesty Return shall be conclusively presumed as true, correct, and final upon filing thereof, and shall be deemed complete upon full payment of the amount due.

The Acceptance Payment Form, and the Estate Tax Amnesty Return shall be submitted to the Revenue District Office after complete payment. The completion of these requirements shall be deemed full compliance with the provisions of this Act. A Certificate of Availment of the Estate Tax Amnesty shall be issued by the Bureau of Internal Revenue within fifteen (15) calendar days from submission to the Bureau of Internal Revenue of the Acceptance Payment Form and the Estate Tax Amnesty Return. Otherwise, the duplicate copies of the Acceptance Payment Form, stamped as received, and the Estate Tax Amnesty Return shall be deemed as sufficient proof of availment.

SEC. 8. Immunities and Privileges. - Estates covered by the Estate Tax Amnesty, which have fully complied with all the conditions set forth in this Act, including the payment of the estate amnesty tax shall be immune from the payment of all estate taxes, as well as any increments and additions thereto, arising from the failure to pay any and all estate taxes for taxable year 2017 and prior years, and from all appurtenant civil, criminal, and administrative cases and penalties under the National Internal Revenue Code of 1997, as amended.

Without prejudice to compliance with applicable laws on succession as a mode of transfer, the Bureau of Internal Revenue, in coordination with the applicable regulatory agencies, shall set up a system enabling the transfer of title over properties to heirs and/or beneficiaries and cash withdrawals from the bank accounts of the decedent, when applicable.

Upon full compliance with all the conditions set forth in this Title and payment of the corresponding estate amnesty tax, the tax amnesty granted under this Title shall become final and irrevocable.

SEC. 9. Exceptions. - The Estate Tax Amnesty under Title II of this Act shall not extend tax cases which shall have become final and executory and to properties involved in cases pending in appropriate courts:

(a) Falling under the jurisdiction of the Presidential Commission on Good Government;

(b) Involving unexplained or unlawfully acquired wealth under Republic Act No. 3019, otherwise known as the Anti-Graft and Corrupt Practices Act, and Republic Act No. 7080 0r An act Defining and Penalizing the Crime of Plunder;

(c) Involving violations of Republic Act No. 9160, otherwise known as the Anti-Money Laundering Act, as amended;

(d) Involving tax evasion and other criminal offenses under Chapter II of Title X of the National Internal Revenue Code of 1997, as amended; and

(e) Involving felonies of frauds, illegal exactions and transactions and malversation of public funds and property under Chapter III and IV of Title VII of the Revised Penal Code.

TITLE III GENERAL TAX AMNESTY

SEC. 10. Coverage. - There is hereby authorized and granted a tax amnesty, hereinafter called General Tax Amnesty, which shall cover all national internal revenue taxes such as, but not limited to, income tax, withholding tax, capital gains tax, donor's tax, value-added tax, other percentage taxes, excise tax and documentary tax stamp tax collected by the Bureau of Internal Revenue, including value-added tax and excise tax collected by the Bureau of Customs for taxable year 2017 and prior years, with or without assessments duly issued therefor, that have remained unpaid; Provided, however, That the General Tax Amnesty hereby authorized and granted shall not cover persons or cases enumerated under Section 16 and Title IV hereof.

SEC. 11. Entitlement Under the General Tax Amnesty. - Except for the instances covered in Section 16 hereof, any person, whether natural or juridical, may enjoy the immunities and privileges of the General tax Amnesty by paying, at the taxpayer's option, an amnesty tax at:

(i) the rate of two percent (2%) based on the taxpayer's total assets as of December 31, 2017, as declared in the Statement of Total Assets; or

(ii) based on the taxpayer's total net worth as of December 31, 2017, as declared in the Statement of Assets, Liabilities, and Networth filed pursuant to Section 12 hereof and in accordance with the following schedule of amnesty tax rates and minimum amnesty tax payments required:

(a) Individual (whether resident or nonresident citizens, including resident of nonresident aliens), Trusts and Estates........5% or P75,000, whichever is higher.

(b) Corporations

(1) With subscribed capital of above P50 million.........5% or P1,000,000, whichever is higher.

(2) With subscribed capital of above P20 million up to P50 million.........5% or P500,000, whichever is higher.

(3) With subscribed capital of P5 million up to P20 million........5% of P250,000, whichever is higher.

(4) With subscribed capital below P5 million.........5% or P100,000, whichever is higher.

(c) Other juridical entities, including, but not limited to, cooperatives, foundations, that have been taxable as of December 31, 2017...........5% of P75,000, whichever is higher.

Provided, That if the taxpayer opts to pay the amnesty tax based on total networth and the computed net worth is negative, the taxpayer may still avail of the benefits of tax amnesty under this Title, and pay the minimum amnesty tax.

SEC. 12. Availment of the General Tax Amnesty; When and Where to File and Pay. - Any person, natural or juridical, who wishes to avail of the General tax Amnesty shall, within one (1) year from the effectivity of the Implementing Rules and Regulations, file with the appropriate office of the Bureau of Internal Revenue, which has jurisdiction over the taxpayer, a sworn General Tax Amnesty Return accompanied by a notarized Statement of Total Assets or notarized Statement of Assets, Liabilities, and Net Worth, as the case may be, as of December 31, 2017. The payment of the amnesty tax shall be made at the time the Return is filed.

Provided, That the Revenue District Office shall issue and endorse an Acceptance Payment Form, in such form as may be prescribed in the Implementing Rules and Regulations of this Act authorizing the authorized agent bank, or in the absence thereof, the revenue collection agent or municipal treasurer concerned, to accept the amnesty tax payment:

Provided, further, That the availment of the General Tax Amnesty and the issuance of the corresponding Acceptance Payment Form do not imply any admission of criminal, civil or administrative liability on the part of the availing taxpayer.

Provided, furthermore, That if the tax amnesty is availed based on the period indicated hereunder, the taxpayer shall be entitled to the corresponding reduction in the total amnesty tax due:

(a) If paid on or before the end of the third calendar month from the effectivity of the Implementing Rules and Regulations...................................................................20%;

(b) If paid after the end of the third calendar month until the end of the sixth calendar month from the effectivity of the Implementing Rules and Regulations...................15%; and

(c) If paid after the end of the sixth calendar month until the end of the ninth calendar month from the effectivity of the Implementing Rules and Regulations...................10%.

SEC. 13. Contents of the Statement of Total Assets and Statement of Assets, Liabilities, and Net Worth . -

(A) The Statement of Total Assets shall contain a declaration of the total assets as of December 31, 2017, as follows:

(1) Assets within or without the Philippines, whether real or personal, tangible or intangible, whether or not used in trade or business:

(a) Real properties shall be accompanied by a description of their classification, exact location, and valued at acquisition cost, if acquired by purchase, or the zonal valuation or fair market value as shown in the schedule of values of the provincial, city or municipal assessors at the time of inheritance or donation, whichever is higher, if acquired through inheritance or donation;

(b) Personal properties other than money, shall be accompanied by a specific description of the kind and number of assets (e.g. automobiles, shares of stock, etc.) or other investments, indicating the acquisition cost less than accumulated depreciation or amortization, or the corresponding book value for shares of stock, in proper cases, if acquired by purchase, or the fair market price or value at the date of the Statement of Total Assets, if acquired through inheritance or donation;

(c) Assets denominated in foreign currency shall be converted into the corresponding Philippine currency equivalent, at the rate of exchange prevailing as of the date of the Statement of Total Assets; and

(d) Cash on hand and in bank in peso as of the date of the Statement of Total Assets, as well as cash on hand and in bank in foreign currency, converted to Philippine peso at the rate of exchange prevailing as of the date of the Statement of Total Assets.

(B) The Statement of Assets, Liabilities, and Networth shall a true and complete declaration of assets, liabilities, and networth of the taxpayer as of December 31, 2017, as follows:

(1) Assets within or without the Philippines, whether real or personal, tangible or intangible, whether or not used in trade or business:

(a) Real properties shall be accompanied by a description of their classification, exact location, and valued at acquisition cost, if acquired by purchase, or the zonal valuation or fair market value as shown in the schedule of values of the provincial, city or municipal assessors, at the of inheritance or donation, whichever is higher, if acquired through inheritance or donation;

(b) Personal properties other than money, shall be accompanied by a specific description of the kind and number of assets (e.g. automobiles, shares of stock, etc.) or other investments indicating the acquisition cost less the accumulated depreciation or amortization, or the corresponding book value for shares of stock, in proper cases, if acquired by purchase, or the fair market price or value at the date of the Statement of Assets, Liabilities, and Net Worth, if acquired through inheritance or donation;

(c) Assets denominated in foreign currency shall be converted into the corresponding Philippine currency equivalent, at the rate of exchange prevailing as of the date of the Statement of Assets, Liabilities, and Net Worth; and

(d) Cash on hand and in bank in peso as of the date of the Statement of Assets, Liabilities, and Net Worth, as well as cash on hand and in bank in foreign currency, converted to Philippine peso at the rate of exchange prevailing as of the date of the Statement of Assets, Liabilities, and Net Worth.

(2) All existing liabilities, which are legitimate and enforceable, secured or unsecured, whether or not incurred in trade or business, disclosing or indicating clearly the name and address of the creditor and the amount of the corresponding liability.

(3) The total networth of the taxpayer, which shall be the difference between the total assets and total liabilities.

SEC. 14. Presumption of Correctness of the Statement of Total Assets, and Statement of Assets, Liabilities, and Net Worth. - The Statement of Total Assets or the Statement of Assets, Liabilities, and Net Worth, filed at the option of the taxpayer, shall be conclusively presumed as true, correct, and final upon filing thereof, and shall be deemed complete upon full payment of the amount due.

The Acceptance Payment Form, and the General Tax Amnesty Return shall be submitted to the Revenue District Office after complete payment. The completion of these requirements shall be deemed full compliance with the provisions of this Act. A Certificate of Availment of the General Tax Amnesty shall be issued by the Bureau of Internal Revenue within fifteen (15) calendar days from submission to the Bureau of Internal Revenue of the Acceptance Payment Form and the General Tax Amnesty Return. Otherwise, the duplicate copies, stamped as received, of the Acceptance Payment Form, and the General Tax Amnesty Return shall be deemed as sufficient proof of availment.

SEC. 15. Immunities and Privileges. - Those who avail of the General tax Amnesty and have fully complied with all the conditions set forth in this Act and upon payment of the amnesty tax shall be entitled to the following immunities and privileges:

(a) With respect to the years covered by the tax amnesty, the taxpayer shall be immune from the payment of taxes, as well as additions thereto, and from all appurtenant civil, criminal, and administrative cases and penalties under the National Internal Revenue Code of 1997, as amended, arising from the failure to pay any and all internal revenue taxes for taxable year 2017 and prior years and from such other investigations or suits insofar as they relate to the assets, liabilities, networth, and internal revenue taxes that are subject of the tax amnesty.

(b) Any information or data contained in, derived from or provided by a taxpayer in the Tax Amnesty Return, Statement of Total Assets or Statement of Assets, Liabilities, and Net Worth, as the case may be, and appurtenant documents shall be confidential in nature and shall not be used in any investigation or prosecution before any judicial, quasi-judicial, and administrative bodies. However, the taxpayer may use this as a defense, whenever appropriate, in cases brought against the taxpayer.

(c) The books of accounts and other records of the taxpayer for the years covered by the tax amnesty availed shall not be examined by the Bureau of Internal Revenue: Provided, That the Commissioner of the Bureau of Internal Revenue may authorize in writing the examination of the said books of accounts and other records to verify the validity or correctness of a claim for any tax refund, tax credit (other than refund or credit of taxes withheld on wages), tax incentives, and/or exemptions under existing laws.

All these immunities and privileges shall not apply when the taxpayer failed to file a General Tax Amnesty Return and a Statement of Total Assets, or Statement of Assets, Liabilities, and Networth, as the case may be.

Upon full compliance with all the conditions set forth in this Title and payment of the corresponding general amnesty tax, the tax amnesty granted this Title shall become final and irrevocable.

SEC. 16. Exceptions. - The General Tax Amnesty under this Act shall not extend to the following:

(a) Withholding tax agents who withheld taxes but failed to remit the same to the Bureau of Internal Revenue;

(b) Taxpayers with case pending in appropriate courts involving:

(1) Those that fall under the jurisdiction of the Presidential Commission on Good Government

(2) Unexplained or unlawfully acquired wealth under Republic Act No. 3019, otherwise known as the Anti-Graft and Corrupt Practices Act, and Republic Act No. 7080 or An Act Defining and Penalizing the Crime of Plunder;

(3) Violations of Republic Act No. 9160, otherwise known as the Anti-Money Laundering Act, as amended;

(4) Tax evasion and other criminal offenses under Chapter II of Title X of the National Internal Revenue Code of 1997, as amended; and

(5) Felonies of frauds, illegal exactions and transactions, and malversation of public funds and property under Chapters III and IV of Title VII of the Revised Penal Code;

(c) Tax cases that have become final and executory; and

(d) Delinquencies and assessments that have become final and executory.

TITLE IV TAX AMNESTY ON DELINQUENCIES

SEC. 17 Coverage. - There is hereby authorized and granted a tax amnesty herein called the Tax Amnesty of Delinquencies, which shall cover all national internal revenue taxes such as, but not limited to, income tax, withholding tax, capital gains tax, donor's tax, value-added tax, other percentage taxes, excise tax and documentary stamp tax collected by the Bureau of Internal Revenue, including value-added tax and excise taxes collected by the Bureau of Customs for taxable year 2017 and prior years.

For purposes of this Act, the Tax Amnesty on Delinquencies may be availed of in the following instances:

(a) Delinquencies and assessments, which have become final and executory, including delinquent tax account, where the application for compromise has been requested on the basis of: (1) doubtful validity of the assessment; or (2) financial incapacity of the taxpayer, but the same was denied by the Regional Evaluation Board or the National Evaluation Board, as the case may be, on or before the Implementing Rules and Regulations take effect;

(b) Pending criminal cases with the Department of Justice or the courts for tax evasion and other criminal offenses under Chapter II of Title X and Section 275 of the National Internal Revenue Code of 1997, as amended, with or without assessments duly issued;

(c) Tax cases subject of final and executory judgment by the courts on or before the Implementing Rules and Regulations take effect; and

(d) Withholding tax agents who withheld taxes but failed to remit the same to the Bureau of Internal Revenue.

SEC. 18. Entitlement of Tax Amnesty on Delinquencies. - Any person may enjoy the immunities and privileges of the Tax Amnesty on Delinquencies and pay the following tax amnesty rates:

(a) Delinquencies and assessments which have become final and executory............................................................40% of the basic tax assessed;

(b) Tax cases subject of final and executory judgment by the courts.......................................................................50% of the basic tax assessed;

(c) Pending criminal cases with criminal information filed with the Department of Justice or the courts for tax evasion and other criminal offenses under Chapter II of Title X and Section 275 of the National Internal Revenue Code of 1997, as amended, with assessments duly issued and otherwise excluded in Titles II and III hereof.......60% of the basic tax assessed; and

(d) Withholding agents who withheld taxes but failed to remit the same to the Bureau of Internal Revenue...............100% of the basic tax assessed

SEC. 19. Availment of the Tax Amnesty on Delinquencies. When and Where to File and Pay. - Any person, natural or juridical, who wishes avail of the Tax Amnesty on Delinquencies shall, within one (1) year from the effectivity of the Implementing Rules and Regulations of this Act, file with the appropriate office of the Bureau of Internal Revenue, which has the jurisdiction over the residence or principal place of business of the taxpayer, a sworn Tax Amnesty on Delinquencies Return accompanied by a Certification of Delinquency. The payment of the amnesty tax shall be made at the time the Return is filed:

Provided, That the Revenue District Officer shall issue and endorse an Acceptance Payment Form, in such form as may be prescribed in the Implementing Rules and Regulations of this Act authorizing the authorized agent bank, or in the absence thereof, the revenue collection agent or municipal treasurer concerned, to accept the amnesty tax payment.

Provided, further, That the availment of the Tax Amnesty on Delinquencies and the issuance of the corresponding Acceptance Payment Form do not imply any admission of criminal, civil or administrative liability on the part of the availing taxpayer.

SEC. 20. Immunities and Privileges. - The tax delinquency of those who avail of the Tax Amnesty on Delinquencies and have fully complied with all the conditions set forth in this Act and upon payment of the amnesty tax shall be considered settled and the criminal case under Section 18(c) ad its corresponding civil or administrative case, if applicable, be terminated, and the taxpayer shall be immune from all suits or actions, including the payment of the said delinquency or assessment, as well as additions thereto, and from all appurtenant civil, criminal and administrative cases, and penalties under the National Internal Revenue Code of 1997, as amended, as such relate to the taxpayer's assets, liabilities, networth, and internal revenue taxes that are subject of the tax amnesty, and from such other investigations or suits insofar as they relate to the assets, liabilities, networth and internal revenue taxes that are subject to the tax amnesty: Provided, That any notices of levy, attachments and/or warrants of garnishment issued against the taxpayer shall be set aside pursuant to a lifting of notice of levy/garnishment duly issued by the Bureau of Internal Revenue or its authorized representative: Provided, further, That the Authority to Cancel Assessment shall be issued by the Bureau of Internal Revenue in favor of the taxpayer availing of the Tax Amnesty on Delinquencies within fifteen (15) calendar days from submission to the Bureau of Internal Revenue of the Acceptance Payment Form and the Tax Amnesty on Delinquencies Return. Otherwise, the duplicate copies, stamped as received, of the Acceptance Payment Form, and the Tax Amnesty on Delinquencies Return and the Acceptance Payment Form shall be submitted to the Revenue District Office after complete payment. The completion of these requirements shall be deemed full compliance with the provisions of this Act.

Upon full compliance with the conditions set forth in this Title and payment of the corresponding tax on delinquency, the tax amnesty granted under this Title shall become final and irrevocable.

TITLE V CONFIDENTIALITY AND NON-USE OF INFORMATION AND DATA, AND AMENDMENT TO THE STATEMENT OF TOTAL ASSETS AND STATEMENT OF ASSETS, LIABILITIES, AND NETWORTH

SEC. 21. Confidentiality and Non-Use of Information and Data in the Statement of Total Assets and Statement of Assets, Liabilities, and Networth. - Any information or data contained in, derived from or provided by a taxpayer in the Tax Amnesty Return, Statement of Total Assets or Statement of Assets, Liabilities, and Networth, as the case may be and appurtenant documents shall be confidential in nature and shall not be used in any investigations or prosecution before any judicial, quasi-judicial, and administrative bodies.

Any statement of assets, liabilities, and networth, financial statements, information sheets, and any such other statements or disclosure that may have been previously submitted by the taxpayer as required by existing laws are deemed to have been amended by the Tax Amnesty Return and/or the Statement of Total Assets or Statement of Assets, Liabilities, and Networth, as the case may be, filed under this Act and may not be the subject of any investigation or prosecution or be used in any investigation or prosecution before any judicial, quasi-judicial, and administrative bodies.

TITLE VI GENERAL PROVISIONS

SEC. 22. Information Management System. - For purpose of enhancing revenue administration, revenue collection and policy formulation, the Department of Finance, in coordination with the Bureau of Internal Revenue, Land Registration Authority, Department of Trade and Industry, Securities and Exchange Commission, Land Transportation Office, and other agencies concerned, shall institute an Information Management Program for the effective use of information declared or obtained from the Tax Amnesty Returns and Statements of Total Assets or Statements of Assets, Liabilities, and Networth, as the case may be, required to be filed under this Act.

If the data requirements consist of information found in the income tax return of taxpayers, the requirements under Section 71 of the National Internal Revenue Code of 1997, as amended, shall still be compiled with. The Information Management System shall also comply with the provisions of Republic Act No. 10173, otherwise known as the "Data Privacy Act" and such other laws relating to confidentiality of information.

SEC. 23. Disposition of Proceeds from the Tax Amnesty. - An amount equivalent to Five hundred million pesos (P5,000,000.00) of the collection from the tax amnesty herein granted shall accrue to the Department of Finance and shall be used exclusively for purposed of establishing tax database under Section 22 of this Act.

Any excess shall be allocated to augment the appropriations needed for the social mitigating measures and the Build Build Build infrastructure projects as provided under Section 82 of Republic Act No. 10963, otherwise known as the "Tax Reform for Acceleration and Inclusion (TRAIN)" Act.

TITLE VII OFFENSES AND PENALTIES

SEC. 24.

SEC. 25. Unlawful Divulgence of Tax Amnesty Return and Appurtenant Documents. - It shall be unlawful for any person having knowledge of the Tax Amnesty Return and appurtenant documents, to disclose any information relative thereto, and any violation hereof shall be penalized a fine of One hundred fifty thousand pesos (P150,000) and imprisonment of not less than six (6) years but not more than ten (10) years. Provided, That if the offender is an officer or employee of the Bureau of Internal Revenue or any government entity, the penalties under Section 270 of the National Internal Revenue Code of 1997, as amended, shall apply: Provided, further, That the offender shall likewise suffer an additional penalty of perpetual disqualification to hold public office.

TITLE VIII CONGRESSIONAL OVERSIGHT COMMITTEE AND FINAL PROVISIONS

SEC. 26. Report to Oversight Committee. - The Commissioner shall submit to the Oversight Committee referred to in Section 290 of the National Internal Revenue Code of 1997, as amended, through the Chairpersons of the Committees on Ways and Means of the Senate of the Philippines and the House of Representatives, a detailed report on the implementation of this Act within six (6) months after the two (2)-year period of availment of the Estate Tax Amnesty and one(1)-year period of availment of the General Tax Amnesty and Tax Amnesty on Delinquencies.

SEC. 27. Implementing Rules and Regulations. - The Secretary of Finance shall, in coordination with the Commissioner of Internal Revenue, promulgate and publish the necessary rules and regulations of this Act within ninety (90) days from its effectivity.

The failure of the Secretary of Finance to promulgate the said rules and regulations shall not prevent the implementation of this Act upon its effectivity.

SEC. 28. Separability Clause. - If any provisions of this Act is subsequently declared invalid or unconstitutional, the other provisions hereof which are not affected thereby shall remain in full force and effect.

SEC. 29. Repealing Clause. - All other laws, acts, presidential decrees, rules and regulations or parts thereof inconsistent with the provisions of this Act are hereby expressly repealed, amended or modified accordingly.

SEC. 30. Effectivity. - This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least one (1) newspaper of general circulation.

Rules and Regulations Implementing the TIMTA

December 9, 2015

AN ACT ENHANCING TRANSPARENCY IN THE MANAGEMENT AND ACCOUNTING OF TAX INCENTIVES ADMINISTERED BY INVESTMENT PROMOTION AGENCIES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. This Act shall be known as “The Tax Incentives Management and Transparency Act (TIMTA)”.

SECTION 2. Declaration of Policy. — It is hereby declared the policy of the State to promote fiscal accountability and transparency in the grant and management of tax incentives by developing means to promptly measure the government’s fiscal exposure on these grants and to enable the government to monitor, review, and analyze the economic impact thereof and thereby optimize the social benefit of such incentives.

SECTION 3. Definition of Terms. — As used in this Act:

a. Investment Promotion Agencies (IPAs) shall refer to government entities created by law, executive order, decree or other issuance, in charge of promoting investments, administering tax and non-tax incentives, and/or overseeing the operations of the different economic zones and freeports in accordance with their respective charters. These include the Board of Investments (BOI), Philippine Economic Zone Authority (PEZA), Bases Conversion and Development Authority (BCDA), Subic Bay Metropolitan Authority (SBMA), Clark Development Corporation (CDC), John Hay Management Corporation (JHMC), Poro Point Management Corporation (PPMC), Bataan Technology Park, Inc. (BTPI), Cagayan Economic Zone Authority (CEZA), Zamboanga City Special Economic Zone Authority (ZCSEZA), Phividec Industrial Authority (PIA), Aurora Pacific Economic Zone and Freeport Authority (APECO), Authority of the Freeport Area of Bataan (AFAB), Tourism Infrastructure and Enterprise Zone Authority (TIEZA), and ail other similar authorities that may be created by law in the future;

b. Tax incentives shall refer to fiscal incentives such as those which come in the form of income tax holidays (ITH), exemptions, deductions, credits or exclusions from the tax base, as provided by law, to registered business entities; and

c. Registered business entity shall refer to any individual, partnership, corporation, Philippine branch of a foreign corporation, or other entity incorporated and/or organized and existing under Philippine laws and registered with an IPA.

SECTION 4. Filing of Tax Returns and Submission of Tax Incentives Reports. — All registered business entities are required to file their tax returns and pay their tax liabilities, on or before the deadline as provided under the National Internal Revenue Code (NIRC), as amended, using the electronic system for filing and payment of taxes of the Bureau of Internal Revenue (BIR).

For registered business entities availing of incentives administered by the IPAs, they shall file with their respective IPAs a complete annual tax incentives report of their income-based tax incentives, value-added tax and duty exemptions, deductions, credits or exclusions from the tax base as provided in the charter of the IPA concerned, within thirty (30) days from the statutory deadline for filing of tax returns and payment of taxes.

The IPAs shall, within sixty (60) days from the end of the statutory deadline for filing of the relevant tax returns, submit to the BIR, their respective annual tax incentives reports based on the list of the registered business entities who have filed said tax incentives report.

The details of the tax incentives reports, as provided in the preceding paragraphs, shall be provided in the implementing rules and regulations (IRR) of this Act.

The foregoing provisions shall be without prejudice to the right of the BIR and the Bureau of Customs (BOC) to conduct assessment within the prescribed period provided in the NIRC, as amended, and the Tariff and Customs Code of the Philippines (TCCP), as amended, respectively.

SECTION 5. Monitoring of Tax Incentives. — The BIR and the BOC shall submit to the Department of Finance (DOF), notwithstanding any law to the contrary: (a) the tax and duty incentives of registered business entities as reflected in their filed tax returns and import entries; and (b) actual tax and duty incentives as evaluated and determined by the BIR and the BOC.

The DOF shall maintain a single database for monitoring and analysis of tax incentives granted.

For purposes of monitoring and transparency, the DOF shall submit to the Department of Budget and Management (DBM) the aggregate data on a sectoral and per industry basis of: (1) the amount of tax incentives availed by registered business entities; (2) the estimate claims of tax incentives immediately preceding the current year; (3) the programmed tax incentives for the current year; and (4) the projected tax incentives for the following year. Such information shall be given to the Oversight Committee created under Section 9 of this Act.

The aforesaid data shall be reflected by the DBM in the annual Budget of Expenditures and Sources of Financing (BESF), which shall be known as the Tax Incentives Information (TII) section: Provided, That the TII shall be limited to the aggregate data related to incentives availed of by registered business entities based on the submissions of the DOF and the concerned IPAs, categorized by sector, by IPA and type of incentive.

Nothing in this Act shall be construed to diminish or limit, in whatever manner, the amount of incentives that EPAs may grant pursuant to their charters and existing laws; or to prevent, deter, or delay the promotion and regulation of investments, processing of applications for registrations, and evaluation of entitlement of incentives by IPAs.

SECTION 6. Conduct of Cost-Benefit Analysis on Investment Incentives. — The National Economic and Development Authority (NEDA) is mandated to conduct cost-benefit analysis on the investment incentives to determine the impact of tax incentives on the Philippine economy.

For this purpose, all heads of the IPAs shall submit to the NEDA the aggregate tax incentives, based on the submissions of registered business entities as provided in Section 4 of this Act, and aggregate investment-related data, both on a sectoral or per industry basis, which may include, but not limited to, investment projects, investment cost, actual employment and export earnings.

SECTION 7. Penalties for Noncompliance with Filing and Reportorial Requirements. — Any registered business entity which fails to comply with filing and reportorial requirements with the appropriate IPAs and/or which fails to show proof of filing of tax returns using the electronic system for filing and payment of taxes of the BIB shall be imposed the following penalties:

a. First (1st) violation — payment of a fine amounting to one hundred thousand pesos (P100,000.00);

b. Second (2nd) violation — payment of a fine amounting to five hundred thousand pesos (P500,000.00); and

c. Third (3rd) violation — cancellation of the registration of the registered business entity.

Provided, That if the failure to show such proof is not due to the fault of the registered business entity, the same shall not be a ground for the suspension of the ITH and/or other income-based tax incentives availment.

Any government official or employee who fails without justifiable reason to provide or furnish the required tax incentives report or other data or information as required under this Act shall be penalized, after due process, by a fine equivalent to the official’s or employee’s basic salary for a period of one (1) month to six (6) months or by suspension from government service for not more than one (1) year, or both, in addition to any criminal and administrative penalties imposable under existing laws.

SECTION 8. Funding. — Such amount necessary to carry out the implementation of this Act shall be sourced from the current General Appropriations Act (GAA).

SECTION 9. Joint Congressional Oversight Committee. — A Joint Congressional Oversight Committee, herein referred to as the Oversight Committee, shall be constituted in accordance with the provisions of this Act. The Oversight Committee shall be composed of the respective Chairpersons of the Committees on Ways and Means of the Senate and of the House of Representatives and four (4) additional members from each House, one of whom shall be the Chairperson of the Senate Committee on Trade, Commerce and Entrepreneurship and the Chairperson of the House Committee on Trade and Industry to be designated by the Senate President and the Speaker of the House of Representatives, respectively. The Oversight Committee shall monitor and ensure the proper implementation of this Act.

SECTION 10. Implementing Rules and Regulations. — The Secretaries of the DOF and the Department of Trade and Industry (DTI), in coordination with the NEDA Director-General, Commissioners of the BIR and BOC, and heads of concerned IPAs, shall, within sixty (60) days from the effectivity of this Act, promulgate rules and regulations to faithfully implement the intent and provisions of this Act: Provided, That the failure of the Secretaries of the DOF and DTI to promulgate the rules and regulations shall not prevent the implementation of this Act upon its effectivity.

SECTION 11. Separability Clause. – If any provision of this Act is subsequently declared invalid or unconstitutional, other provisions hereof which are not affected thereby shall remain in full force and effect.

SECTION 12. Repealing Clause. – All other laws, acts, presidential decrees, executive orders, issuances, presidential proclamations, rules and regulations or parts thereof which are contrary to and inconsistent with any provision of this Act are hereby repealed, amended or modified accordingly.

SECTION 13. Effectivity. – This Act shall take effect fifteen (15) days after its complete publication either in the Official Gazette or in at least one (1) newspaper of general circulation.

June 16, 1954

AN ACT CREATING THE COURT OF TAX APPEALS

Section 1. Court; Judges; 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 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 (2) most Senior Associate Justices, all of whom are incumbent, shall serve as chairmen of the three (3) Divisions. The other three (3) incumbent Associate Justices and the three (3) additional Associate Justices shall serve as members of the Divisions. The additional three (3) Justices as provided herein and the 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 retirement 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.

(as amended by RA No 3457, 9282, 9503)

Section 2. Sitting En Banc or Division; Quorum; Proceedings. — The CTA may sit en banc or in three (3) Divisions, each Division consisting of three (3) Justices.

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 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, as the case may be, shall be necessary for the rendition of a decision or resolution in the Division Level.

(as amended by RA No 9282, 9503)

Section 3. Clerk of Court; Division Clerks of Court; Appointment; Qualification; Compensation.— The CTA shall have a Clerk of Court and three (3) Division Clerks of Court who shall be appointed by the Supreme Court. No person shall be appointed Clerk of Court or Division Clerk of Court unless he is duly authorized to practice law in the Philippines. The Clerk of Court and Division Clerks of Court shall exercise the same powers and perform the same duties in regard to all matters within the Court's jurisdiction, as are exercised and performed by the Clerk of Court and Division Clerks of Court of the Court of Appeals, in so far as the same may be applicable or analogous; and in the exercise of those powers and the performance of those duties they shall be under the direction of the Court. The Clerk of Court and the Division Clerks of Court shall have the same rank, privileges, salary, emoluments, retirement and other benefits as those provided for the Clerk of Court and Division Clerks of Court of the Court of Appeals, respectively. (as amended by RA No 9282)

Section 4. Other subordinate employees. - The Supreme Court shall appoint all officials and employees of the CTA, in accordance with the Civil Service Law. The Supreme Court shall fix their salaries and prescribe their duties. (as amended by RA No 9282)

Section 5. Disqualifications. - No Justice or other officer or employee of the CTA shall intervene, directly or indirectly, in the management or control of any private enterprise which in any way may be affected by the functions of the Court. Justices of the Court shall be disqualified from sitting in any case on the same grounds provided under Rule one hundred thirty-seven of the Rules of Court for the disqualification of judicial officers. No person who has once served in the Court in a permanent capacity, either as Presiding Justice or as Associate Justice thereof, shall be qualified to practice as counsel before the Court for a period of one (1) year from his retirement or resignation. (as amended by RA No 9282)

Section 6. Place of office. - The CTA shall have its principal office in Metro Manila and shall hold hearings at such time and place as it may, by order in writing, designate. (as amended by RA No 9282)

Section 7. Jurisdiction. - The CTA shall exercise:

(a) Exclusive appellate jurisdiction to review by appeal, as herein provided:

(1) Decisions of the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relation thereto, or other matters arising under the National Internal Revenue or other laws administered by the Bureau of Internal Revenue;

(2) Inaction by the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relations thereto, or other matters arising under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue, where the National Internal Revenue Code provides a specific period of action, in which case the inaction shall be deemed a denial;

(3) Decisions, orders or resolutions of the Regional Trial Courts in local tax cases originally decided or resolved by them in the exercise of their original or appellate jurisdiction;

(4) Decisions of the Commissioner of Customs in cases involving liability for customs duties, fees or other money charges, seizure, detention or release of property affected, fines, forfeitures or other penalties in relation thereto, or other matters arising under the Customs Law or other laws administered by the Bureau of Customs;

(5) Decisions of the Central Board of Assessment Appeals in the exercise of its appellate jurisdiction over cases involving the assessment and taxation of real property originally decided by the provincial or city board of assessment appeals;

(6) Decisions of the Secretary of Finance on customs cases elevated to him automatically for review from decisions of the Commissioner of Customs which are adverse to the Government under Section 2315 of the Tariff and Customs Code;

(7) Decisions of the Secretary of Trade and Industry, in the case of non-agricultural product, commodity or article, and the Secretary of Agriculture in the case of agricultural product, commodity or article, involving dumping and counter ailing duties under Section 301 and 302, respectively, of the Tariff and Customs Code, and safeguard measures under Republic Act No. 8800, where either party may appeal the decision to impose or not to impose said duties.

(b) Jurisdiction over cases involving criminal offenses as herein provided:

(1) Exclusive original jurisdiction over all criminal offenses arising from violations of the National Internal Revenue Code or Tariff and Customs Code and other laws administered by the Bureau of Internal Revenue or the Bureau of Customs: Provided, however, That offenses or felonies mentioned in this paragraph where the principal amount of taxes and fees, exclusive of charges and penalties, claimed is less than One million pesos (P1,000,000.00) or where there is no specified amount claimed shall be tried by the regular Courts and the jurisdiction of the CTA shall be appellate. Any provision of law or the Rules of Court to the contrary notwithstanding, the criminal action and the corresponding civil action for the recovery of civil liability for taxes and penalties shall at all times be simultaneously instituted with, and jointly determined in the same proceeding by the CTA, the filing of the criminal action being deemed to necessarily carry with it the filing of the civil action, and no right to reserve the filling of such civil action separately from the criminal action will be recognized.

(2) Exclusive appellate jurisdiction in criminal offenses:

(a) Over appeals from the judgments, resolutions or orders of the Regional Trial Courts in tax cases originally decided by them, in their respected territorial jurisdiction.

(b) Over petitions for review of the judgments, resolutions or orders of the Regional Trial Courts in the exercise of their appellate jurisdiction over tax cases originally decided by the Metropolitan Trial Courts, Municipal Trial Courts and Municipal Circuit Trial Courts in their respective jurisdiction.

(c) Jurisdiction over tax collection cases as herein provided:

(1) Exclusive original jurisdiction in tax collection cases involving final and executory assessments for taxes, fees, charges and penalties: Provided, however,That collection cases where the principal amount of taxes and fees, exclusive of charges and penalties, claimed is less than One million pesos (P1,000,000.00) shall be tried by the proper Municipal Trial Court, Metropolitan Trial Court and Regional Trial Court.

(2) Exclusive appellate jurisdiction in tax collection cases:

(a) Over appeals from the judgments, resolutions or orders of the Regional Trial Courts in tax collection cases originally decided by them, in their respective territorial jurisdiction.

(b) Over petitions for review of the judgments, resolutions or orders of the Regional Trial Courts in the Exercise of their appellate jurisdiction over tax collection cases originally decided by the Metropolitan Trial Courts, Municipal Trial Courts and Municipal Circuit Trial Courts, in their respective jurisdiction.

(as amended by RA No 9282)

Section 8. Court of record; seal; proceedings. - The Court of Tax Appeals shall be a court of record and shall have a seal which shall be judicially noticed. It shall prescribe the form of its writs and other processes. It shall have the power to promulgate rules and regulations for the conduct of the business of the Court, and as may be needful for the uniformity of decisions within its jurisdiction as conferred by law, but such proceedings shall not be governed strictly by technical rules of evidence.

Section 9. Fees. - The Court shall fix reasonable fees for the filing of an appeal, for certified copies of any transcript of record, entry or other document, and for other authorized services rendered by the Court or its personnel.

Section 10. Power to administer oaths; issue subpoena; punish for contempt. - The Court shall have the power to administer oaths, receive evidence, summon witnesses by subpoena duces tecum, subject in all respects to the same restrictions and qualifications as applied in judicial proceedings of a similar nature. The Court shall, in accordance with Rule seventy-one of the Rules of Court, have the power to punish for contempt for the same causes, under the same procedure and with the same penalties provided therein. (as amended by RA No 9282)

Section 11. Who may appeal; Mode of appeal; effect of appeal. - Any party adversely affected by a decision, ruling 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 or the Central Board of Assessment Appeals or the Regional Trial Courts may file an appeal with the CTA within thirty (30) days after the receipt of such decision or ruling or after the expiration of the period fixed by law for action as referred to in Section 7(a)(2) herein.

Appeal shall be made by filing a petition for review under a procedure analogous to that provided for under Rule 42 of the 1997 Rules of Civil Procedure with the CTA within thirty (30) days from the receipt of the decision or ruling or in the case of inaction as herein provided, from the expiration of the period fixed by law to act thereon. A Division of the CTA shall hear the appeal: Provided, however,That with respect to decisions or rulings of the Central Board of Assessment Appeals and the Regional Trial Court in the exercise of its appellate jurisdiction, appeal shall be made by filing a petition for review under a procedure analogous to that provided for under rule 43 of the 1997 Rules of Civil Procedure with the CTA, which shall hear the case en banc.

All other cases involving rulings, orders or decisions filed with the CTA as provided for in Section 7 shall be raffled to its Divisions. A party adversely affected by a ruling, order or decision of a Division of the CTA may file a motion for reconsideration of new trial before the same Division of the CTA within fifteens (15) days from notice thereof: Provide, however, That in criminal cases, the general rule applicable in regular Courts on matters of prosecution and appeal shall likewise apply.

No appeal taken to the CTA from the decision of the Commissioner of Internal Revenue or the Commissioner of Customs or the Regional Trial Court, provincial, city or municipal treasurer or the Secretary of Finance, the Secretary of Trade and Industry or the Secretary of Agriculture, as the case may be, shall suspend the payment, levy, distraint, and/or sale of any property of the taxpayer for the satisfaction of his tax liability as provided by existing law: Provided, however, That when in the opinion of the Court the collection by the aforementioned government agencies may jeopardize the interest of the Government and/or the taxpayer the Court any stage of the proceeding may suspend the said collection and require the taxpayer either to deposit the amount claimed or to file a surety bond for not more than double the amount with the Court.

In criminal and collection cases covered respectively by Section 7(b) and (c) of this Act, the Government may directly file the said cases with the CTA covering amounts within its exclusive and original jurisdiction.

(as amended by RA No 9282)

Section 12. Taking of evidence. - The Court may, upon proper motion on or its initiative, direct that a case, or any issue thereof, be assigned to one of its members for the taking of evidence, when the determination of a question of fact arises upon motion or otherwise in 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 member shall proceed in all respects as though the same had been made before the Court.

Upon the recommendation of such hearing such member, he shall promptly submit to the Court his report in writing, stating his findings and conclusions; and thereafter, the Court shall render its decisions on the case, adopting, modifying, or rejecting the report in whole or in part, as the case may be, or the Court may, in its discretion recommit it with instructions, or receive further evidence.

Section 13. Decision; Maximum Period for Termination of Cases. - Cases brought before the Court shall be decided in accordance with Section 15, paragraph (1), Article VIII (Judicial Department) of the 1987 Constitution. Decisions of the Court shall be in writing, stating clearly and distinctly the facts and the law on which they are based, and signed by the Justices concurring therein. The Court shall provide for the publication of its decisions in the Official Gazette in such form and manner as may best be adopted for public information and use.

The Justices of the Court shall each certify on their applications for leave, and upon salary vouchers presented by them for payment, or upon the payrolls under which their salaries are paid, that all proceedings, petitions and motions which have been submitted to the Court for determination or decision for a period required by the law or the Constitution, as the case may be, have been determined or decided by the Court on or before the date of making the certificate, and no leave shall be granted and no salary shall be paid without such certificate.

(as amended by RA No 9282)

Section 14. Effect of decision that tax is barred by statute of limitations. - If the assessment or collection of any tax is barred by any statute of limitations, the decisions of the Court that effect shall be considered as its decision that there is no deficiency in respect of such tax.

Section 15. Publicity of proceedings and publication of decisions. - All decisions of, and all evidence received by the Court and its divisions, including transcript of stenographic reports of the hearings, shall be public records open to the inspection of the public, except that after the decision of the Court in any proceedings has become final the Court may, upon motion of the taxpayer or the Government permit the withdrawal, by the part entitled thereto of originals of books, documents and records, and or models, diagrams, and other exhibits, introduced in evidence before the Court or any division; or the Court may, on its own motion, make such other disposition thereof as it deems advisable. The Court shall provide for the publication of its decisions in the Official Gazette in such form and manner as may be best adopted for public information and use.

Section 16. Damages. - Where an appeal is found to be frivolous, or that proceedings have been instituted merely for delay, the Court may assess damage against the appellants in an amount not exceeding five hundred pesos, which shall be collected in the same manner as fines or other penalties authorized by law.

Section 17. Violation of penal law. - When, in the performance of its functions, it should appear to the Court that a crime or other violation of law has been committed, or, that there are reasonable grounds to believe that any official, employee or private person is guilty of any crime, offense or other violation, the Court shall refer the matter to the proper department, bureau or office for investigation or the institution of such criminal or administrative action as the facts and circumstances of the case may warrant.

Section 18. Appeal to the Court of Tax Appeals En Banc. - No civil proceeding involving matters arising under the National Internal Revenue Code, the Tariff and Customs Code or the Local Government Code shall be maintained, except as herein provided, until and unless an appeal has been previously filed with the CTA and disposed of in accordance with the provisions of this Act.

A party adversely affected by a resolution of a Division of the CTA on a motion for reconsideration or new trial, may file a petition for review with the CTA en banc. (as amended by RA No 9282)

Section 19. Review by certiorari. - A party adversely affected by a decision or ruling of the CTA en banc may file with the Supreme Court a verified petition for review on certiorari pursuant to Rule 45 of the 1997 Rules of Civil Procedure. (as amended by RA No 9282)

Section 20. Appropriation. - The sum of seventy-thousand pesos is hereby appropriated out of any funds in the National Treasury not otherwise appropriated for the salaries and the purchase of supplies and equipment necessary for the operation of the Court of Tax Appeals herein established during the current fiscal year. Thereafter the funds necessary for the operation of the Court shall be included in the regular Appropriation Act.

Section 21. General provisions. - Whenever the words "Board of Tax Appeals" are used in Commonwealth Act Numbered Four hundred and seventy, otherwise known as the Assessment Law, or in other laws, rules and regulations relative thereto, the same shall read "Board of Assessment Appeals."

The Central Board of Tax Appeals created under section two of Commonwealth Act Numbered Five hundred and thirty is hereby abolished.

Executive Order Numbered Four hundred and one-A, dated the fifth of January, nineteen hundred and fifty- one, is repealed and the Board of Tax Appeals created therein, abolished: Provided, however, That all cases heretofore decided by the said Board of Tax Appeals and thence appealed to the Supreme Court pursuant to Executive Order Numbered Four hundred one-A shall be decided by the Supreme Court on the merits to all intents and purposes as if said Executive Order has been duly enacted by the Congress: And, Provided, further, That all cases now pending in the said Board of Tax Appeals shall be transferred to the Court of Tax Appeals and shall be heard and decided by the latter to all intents and purposes as if they had been originally filed therein.

Any law or part of law, or any executive order, rule or regulation or part thereon, inconsistent with the provisions of this Act is hereby repealed.

Section 22. Pending cases to be remanded to Court. - All cases involving disputed assessment of Internal Revenue taxes or customs duties pending determination before the Court of First Instance shall be certified and remanded by the respective clerk of court to the Court of Tax Appeals for final disposition thereof.

Section 23. Separability Clause. - If any clause, sentence, paragraph or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder of this Act, but shall confined in its operations to the clause, sentence, paragraph or part thereof directly involved in the controversy.

Section 24. This Act shall take effect upon its approval.

Approved: June 16, 1954

November 22, 2005

REVISED RULES OF THE COURT OF TAX APPEALS

Pursuant to Section 8 of Republic Act No. 1125, as further amended by Republic Act No. 9282, the Court of Tax Appeals (hereinafter referred to as the Court) hereby adopts and promulgates the following Rules for the conduct of its business:

RULE 1 TITLE AND CONSTRUCTION

SECTION 1. Title of the Rules – These Rules shall be known and cited as the Revised Rules of the Court of Tax Appeals (RRCTA). (RCTA, Rule 1, sec. 1a)

SEC. 2. Liberal construction.- The Rules shall be liberally construed in order to promote their objective of securing a just, speedy, and inexpensive determination of every action and proceeding before the Court. (RCTA, Rule 1, sec. 2a)

SEC. 3. Applicability of the Rules of Court. – The Rules of Court in the Philippines shall apply suppletorily to these Rules. (n)

RULE 2 THE COURT, ITS ORGANIZATION AND FUNCTIONS

Section 1. Composition of the Court. – The Court is composed of a presiding justice and five associate justices appointed by the President of the Philippines. In appropriate cases, the Court shall sit en banc, or in two Divisions of three justices each, including the presiding justice, who shall be the Chairman of its First Division. (n)

SEC. 2. Exercise of powers and functions. – The Court shall exercise its adjudicative powers, functions and duties en banc or in Divisions.

The Court shall sit en banc in the exercise of its administrative, ceremonial and non-adjudicative functions. (n)

SEC. 3. Court en banc; quorum and voting. – The presiding justice or, in his absence, the most senior justice in attendance shall preside over the sessions of the Court en banc. The attendance of four justices of the Court shall constitute a quorum for its sessions en banc. The presence at the deliberation and the affirmative vote of four justices of the Court en banc shall be necessary for the rendition of a decision or resolution on any case or matter submitted for its consideration. Where the necessary majority vote cannot be had, the petition shall be dismissed; in appealed cases, the judgment or order appealed from shall stand affirmed; and on all incidental matters, the petition or motion shall be denied.

No decision of a Division of the Court may be reversed or modified except by the affirmative vote of four justices of the Court en banc acting on the case.

Interlocutory orders or resolutions shall be acted upon by majority vote of the justices present constituting a quorum.

(Rules of Court, Rule 56, sec. 7a)

SEC. 4. The Court in Divisions; quorum and voting. – The chairman of the Division or, in his absence, its senior member shall preside over the sessions of the Court in Divisions. The attendance of at least two 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 judgment or final resolution of the Court in Divisions. (n)

SEC. 5. Hearings. – The Court en banc or in Divisions shall conduct hearings on such days and at such times and at such places as it may fix, with notice to the parties concerned. However, the Friday of each week shall be devoted to hearing motions, unless, for special reasons, the Court en banc or in Divisions shall, motu proprio or upon motion of a party, fix another day for the hearing of any motion. (RCTA, Rule 3, sec. 2a)

SEC. 6. Disqualification of justices.-

(a) Mandatory. – No justice or other officer or employee of the Court shall intervene, directly or indirectly, in the management or control of any private enterprise which in any way may be affected by the functions 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 137 of the Rules of Court. No person who has once served in the Court either as presiding justice or as associate justice shall be qualified to practice as counsel before the Court for a period of one year from his retirement or resignation as such. (Rules of Court, Rule 137, sec. 1, par. 1a)

(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 or proceeding, disclose on the records the basis of his disqualification. If, based on such disclosure, the parties and lawyers, independently of the justice’s participation, all agree in writing that the reason for the inhibition 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. (Rules of Court, Rule 137, sec. 1, par. 1a)

(c) Voluntary. – A justice of the Court may, in the exercise of his sound discretion, disqualify himself from sitting in a case or proceeding, for just or valid reasons other than those mentioned above. (Rules of Court, Rule 137, sec. 1, par. 2a)

A justice of the Court who inhibits himself from sitting in a case or proceeding shall immediately notify in writing the presiding justice and the members of his Division. (n)

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 the motion. However, if the motion for inhibition is based on a discretionary ground, the Court shall refer the motion to the justice involved for his appropriate action. (n)

RULE 3 PLACE OF OFFICE, SEAL AND OFFICE HOURS

SECTION 1. Place of office. – The Court shall have its principal office in Metro Manila. RCTA, Rule 3, sec. 1a)

SEC. 2. Court seal. – The seal of the Court shall be circular in form and shall be of the usual size. It shall bear, in its center, a design of the coat of arms of the Republic of the Philippines with the words “BATAS AT BAYAN” immediately underneath the design. On the upper margin running from left to right are the words “COURT OF TAX APPEALS,” and on its lower margin the words “REPUBLIKA NG PILIPINAS.” (RCTA, Rule 2, sec. 1a)

SEC. 3. Seal, where affixed. – The seal of the Court shall be affixed to all summons, subpoena, notices, decisions, orders or resolutions, certified copies of official records and such other papers that the Court may require to be sealed. (n)

SEC. 4. Office hours. – The Office of the Clerk of Court shall be open for the transaction of business and receiving petitions, complaints, pleadings, motions, and other papers, during the hours from eight o’clock in the morning to four-thirty o’clock in the afternoon on Mondays to Fridays, except on such days as may be designated by law or executive proclamation as non-working official holidays. (RCTA, Rule 3, sec. 3a)

RULE 4 JURISDICTION OF THE COURT

SECTION 1. Jurisdiction of the Court. – The Court shall exercise exclusive original jurisdiction over or appellate jurisdiction to review by appeal the cases specified in Republic Act No. 1125, Section 7, as amended by Republic Act No. 9282, Section 7. (n)

SEC. 2. Cases within the jurisdiction of the Court en banc. – The Court en banc shall exercise exclusive appellate jurisdiction to review by appeal the following:

(a) Decisions or resolutions on motions for reconsideration or new trial of the Court in Divisions in the exercise of its exclusive appellate jurisdiction over:

(1) Cases arising from administrative agencies – Bureau of Internal Revenue, Bureau of Customs, Department of Finance, Department of Trade and Industry, Department of Agriculture;

(2) Local tax cases decided by the Regional Trial Courts in the exercise of their original jurisdiction; and

(3) Tax collection cases decided by the Regional Trial Courts in the exercise of their original jurisdiction involving final and executory assessments for taxes, fees, charges and penalties, where the principal amount of taxes and penalties claimed is less than one million pesos;

(b) Decisions, resolutions or orders of the Regional Trial Courts in local tax cases decided or resolved by them in the exercise of their appellate jurisdiction;

(c) Decisions, resolutions or orders of the Regional Trial Courts in tax collection cases decided or resolved by them in the exercise of their appellate jurisdiction;

(d) Decisions, resolutions or orders on motions for reconsideration or new trial of the Court in Division in the exercise of its exclusive original jurisdiction over tax collection cases;

(e) Decisions of the Central Board of Assessment Appeals (CBAA) in the exercise of its appellate jurisdiction over cases involving the assessment and taxation of real property originally decided by the provincial or city board of assessment appeals;

(f) Decisions, resolutions or orders on motions for reconsideration or new trial of the Court in Division in the exercise of its exclusive original jurisdiction over cases involving criminal offenses arising from violations of the National Internal Revenue Code or the Tariff and Customs Code and other laws administered by the Bureau of Internal Revenue or Bureau of Customs;

(g) Decisions, resolutions or orders on motions for reconsideration or new trial of the Court in Division in the exercise of its exclusive appellate jurisdiction over criminal offenses mentioned in the preceding subparagraph; and

(h) Decisions, resolutions or orders of the Regional trial Courts in the exercise of their appellate jurisdiction over criminal offenses mentioned in subparagraph (f).

(n)

SEC. 3. Cases within the jurisdiction of the Court in Divisions. – The Court in Divisions shall exercise:

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

(1) Decisions of the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relation thereto, or other matters arising under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue;

(2) Inaction by the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relation thereto, or other matters arising under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue, where the National Internal Revenue Code or other applicable law provides a specific period for action: Provided, that in case of disputed assessments, the inaction of the Commissioner of Internal Revenue within the one hundred eighty day-period under Section 228 of the National Internal revenue Code shall be deemed a denial for purposes of allowing the taxpayer to appeal his case to the Court and does not necessarily constitute a formal decision of the Commissioner of Internal Revenue on the tax case; Provided, further, that should the taxpayer opt to await the final decision of the Commissioner of Internal Revenue on the disputed assessments beyond the one hundred eighty day-period abovementioned, the taxpayer may appeal such final decision to the Court under Section 3(a), Rule 8 of these Rules; and Provided, still further, that in the case of claims for refund of taxes erroneously or illegally collected, the taxpayer must file a petition for review with the Court prior to the expiration of the two-year period under Section 229 of the National Internal Revenue Code;

(3) Decisions, resolutions or orders of the Regional Trial Courts in local tax cases decided or resolved by them in the exercise of their original jurisdiction;

(4) Decisions of the Commissioner of Customs in cases involving liability for customs duties, fees or other money charges, seizure, detention or release of property affected, fines, forfeitures of other penalties in relation thereto, or other matters arising under the Customs Law or other laws administered by the Bureau of Customs;

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

(6) Decisions of the Secretary of Trade and Industry, in the case of non-agricultural product, commodity or article, and the Secretary of Agriculture, in the case of agricultural product, commodity or article, involving dumping and countervailing duties under Section 301 and 302, respectively, of the Tariff and Customs Code, and safeguard measures under Republic Act No. 8800, where either party may appeal the decision to impose or not to impose said duties;

(b) Exclusive jurisdiction over cases involving criminal offenses, to wit:

(1) Original jurisdiction over all criminal offenses arising from violations of the National internal Revenue Code or Tariff and Customs Code and other laws administered by the Bureau of Internal Revenue of the Bureau of Customs, where the principal amount of taxes and fees, exclusive of charges and penalties, claimed is one million pesos or more; and

(2) Appellate jurisdiction over appeals from the judgments, resolutions or orders of the Regional Trial Courts in their original jurisdiction in criminal offenses arising from violations of the National Internal Revenue Code or Tariff and Customs Code and other laws administered by the Bureau of Internal Revenue or Bureau of Customs, where the principal amount of taxes and fees, exclusive of charges and penalties, claimed is less than one million pesos or where there is no specified amount claimed;

(c) Exclusive jurisdiction over tax collections cases, to wit:

(1) Original jurisdiction in tax collection cases involving final and executory assessments for taxes, fees, charges and penalties, where the principal amount of taxes and fees, exclusive of charges and penalties, claimed is one million pesos or more; and

(2) Appellate jurisdiction over appeals from the judgments, resolutions or orders of the Regional Trial Courts in tax collection cases originally decided by them within their respective territorial jurisdiction. (n)

RULE 5 FORM AND STYLE OF PAPERS

SECTION 1. Style. – All papers filed with the Court shall be either printed or typewritten, and fastened on the upper left hand corner. All such papers shall have a caption, date and signature, and copies, as specified below. (RCTA, Rule 4, sec. 1a)

SEC. 2. Size and specifications. – Printed or typewritten papers shall be typed double-spaced on good quality, unglazed and plain white paper eight and a half inches wide by thirteen inches long (legal-size), or eight and a quarter inches wide by eleven and three-fourths inches long (A4-size), at least substance twenty and printed on one side only without covers. There shall be a margin at the left-hand side of each page of not less than one and one-half inches in width and at the top, bottom and right-hand side of each page of not less than one inch in width. (RCTA, Rule 4, sec. 3a)

SEC. 3. Citations. – Citations shall be indented at least one inch from the inside margin and typed single-spaced. (RCTA, Rule 4, sec. 4a)

SEC. 4. Number of copies. – The parties shall file eleven signed copies of every paper for cases before the Court en banc and six signed copies for cases before a Division of the Court in addition to the signed original copy, except as otherwise directed by the Court. Papers to be filed in more than one case shall include one additional copy for each additional case. (RCTA, Rule 4, sec. 5a)

SEC. 5. Clear and legible copies. – All copies shall be clear and legible. (RCTA, Rule 4, sec. 6a)

RULE 6 PLEADINGS FILED WITH THE COURT

SECTION 1. Complaint; contents. – The complaint shall contain allegations showing jurisdiction of the Court and a concise statement of the complete facts of the plaintiff’s cause or causes of action. The complaint shall be verified and must contain a certification against forum shopping as provided in Sections 4 and 5, Rule 7 of the Rules of Court. (n)

SEC. 2. Petition for review; contents. – The petition for review shall contain allegations showing the jurisdiction of the Court, a concise statement of the complete facts and a summary statement of the issues involved in the case, as well as the reasons relied upon for the review of the challenged decision. The petition shall be verified and must contain a certification against forum shopping as provided in Section 3, Rule 46 of the Rules of Court. A clearly legible duplicate original or certified true copy of the decision appealed from shall be attached to the petition. (RTCA, Rule 5, sec. 2a)

SEC. 3. Payment of docket fees. – The Clerk of Court shall not receive a petition for review for filing unless the petitioner submits proof of payment of the docket fees. Upon receipt of the petition or the complaint, it will be docketed and assigned a number, which shall be placed by the parties on all papers thereafter filed in the proceeding. The Clerk of Court will then issue the necessary summons to the respondent or defendant. (RCTA, Rule 5, sec. 3a)

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 upon him, 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 his responsive pleading within ten days. (RCTA, Rule 8, sec. 1a)

(b) Failure to comply. – If the order issued by the Court pursuant to paragraph (a) above is not complied with within ten days after notice of the order, or within such other time as the Court may fix, the Court may strike out the pleading to which the motion was directed or may make such other order as it deems just. The Court may upon motion set aside the order, or modify it in the interest of justice. (RCTA, Rule 8, sec. 2a)

(c) Motion for bill of particulars when not allowed. – No motion for bill of particulars shall be allowed in cases falling under Sections 3(a)(3) and 3(c)(2) of Rule 4 of these Rules. (n)

SEC. 5. Answer. –

(a) Time for filing and contents. – Within fifteen days after service of summons, the respondent or the defendant shall file an answer to the petition or complaint which shall include all defenses in law and the specific provisions of law and applicable jurisprudence and grounds for dismissal of the petition or complaint, or which shall prevent and bar recovery.

(Rule of Procedure for Civil Forfeiture, Asset Preservation and Freeze Order, Sec. 9, par. 2a; and RCTA, Rule 7, sec. 1a)

(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 his answer, the chairman 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. (RCTA, Rule 7, sec. 2a)

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

The initial pleading or entry of appearance shall show:

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

(2) His Roll of Attorney’s Number;

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

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

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

The attorney or party entering his 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 his written appearance must give his business address to the Clerk of Court and file his written appearance within forty-eight hours from such open court appearance. An attorney or party who has filed his appearance and who changes his 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. (RCTA, Rule 10, sec. 1a)

RULE 7 PROCEDURE IN THE COURT OF TAX APPEALS

SECTION 1. Applicability of the Rules of the Court of Appeals, exception. – The procedure in the Court en banc or in Divisions in original and in appealed cases shall be the same as those in petitions for review and appeals before the Court of Appeals pursuant to the applicable provisions of Rules 42, 43, 44 and 46 of the Rules of Court, except as otherwise provided for in these Rules. (n)

RULE 8 PROCEDURE IN CIVIL CASES

SECTION 1. Review of cases in the Court en banc. – In cases falling under the exclusive appellate jurisdiction of the Court en banc, the petition for review of a decision or resolution of the Court in Division must be preceded by the filing of a timely motion for reconsideration or new trial with the Division. (n)

SEC. 2. Review of cases in the Court in Division. – In appealed cases falling under the jurisdiction of the Court in Division in Sections 3(a)(1) to 3(a)(6) and 3(c)(2) of Rule 4, the party filing the case shall be called the Petitioner and the party against whom the case is filed shall be called the Respondent. The pleading shall be entitled Petition for Review.

In tax collection cases originally filed with the Court under Section 3(c)(1) of Rule 4, the party filing the case shall be called the Plaintiff and the party against whom the case is filed shall be called the Defendant. The pleading shall be entitled Complaint. In appealed tax collection cases, the original captions shall be retained. The party filing the appeal shall be called the Appellant and the party against whom the appeal is filed shall be called the Appellee. (RCTA, Rule 5, Sec. 1a)

SEC. 3. Who may appeal; period to file petition. – (a) A party adversely affected by a decision, ruling or the inaction of the Commissioner of Internal Revenue on disputed assessments or claims for refund of internal revenue taxes, or by a decision or ruling of the Commissioner of Customs, the Secretary of Finance, the Secretary of Trade and Industry, the Secretary of Agriculture, or a Regional Trial Court in the exercise of its original jurisdiction may appeal to the Court by petition for review filed within thirty days after receipt of a copy of such decision or ruling, or expiration of the period fixed by law for the Commissioner of Internal Revenue to act on the disputed assessments. In case of inaction of the Commissioner of Internal revenue on claims for refund of internal revenue taxes erroneously or illegally collected, the taxpayer must file a petition for review within the two-year period prescribed by law from payment or collection of the taxes. (n)

(b) A party adversely affected by a decision or resolution of a Division of the Court on a motion for reconsideration or new trial may appeal to the Court by filing before it a petition for review within fifteen days from receipt of a copy of the questioned decision or resolution. Upon proper motion and the payment of the full amount of the docket and other lawful fees and deposit for costs before the expiration of the reglementary period herein fixed, the Court may grant an additional period not exceeding fifteen days from the expiration of the original period within which to file the petition for review. (Rules of Court, Rule 42, sec. 1a)

(c) A party adversely affected by a decision or ruling of the Central Board of Assessment Appeals and the Regional Trial Court in the exercise of their appellate jurisdiction may appeal to the Court by filing before it a petition for review within thirty days from receipt of a copy of the questioned decision or ruling. (n)

SEC. 4. Where to appeal; mode of appeal. – (a) An appeal from a decision or ruling or the inaction of the Commissioner of Internal Revenue on disputed assessments or claim for refund of internal revenue taxes erroneously or illegally collected, the decision or ruling of the Commissioner of Customs, the Secretary of Finance, the Secretary of Trade & Industry, the Secretary of Agriculture, and the Regional Trial Court in the exercise of their original jurisdiction, shall be taken to the Court by filing before it a petition for review as provided in Rule 42 of the Rules of Court. The Court in Division shall act on the appeal. (n)

(b) An appeal from a decision or resolution of the Court in Division on a motion for reconsideration or new trial shall be taken to the Court by petition for review as provided in Rule 43 of the Rules of Court. The Court en banc shall act on the appeal. (n)

(c) An appeal from a decision or ruling of the Central Board of Assessment Appeals or the Regional Trial Court in the exercise of their appellate jurisdiction shall be taken to the Court by filing before it a petition for review as provided in Rule 43 of the Rules of Court. The Court en banc shall act on the appeal. (n)

RULE 9 PROCEDURE IN CRIMINAL CASES

SECTION 1. Review of cases in the Court. – The review of criminal cases in the Court en banc or in Division shall be governed by the applicable provisions of Rule 124 of the Rules of Court. (n)

SEC. 2. Institution of criminal actions. – All criminal actions before the Court in Division in the exercise of its original jurisdiction shall be instituted by the filing of an information in the name of the People of the Philippines. In criminal actions involving violations of the National Internal Revenue Code and other laws enforced by the Bureau of Internal Revenue, the Commissioner of Internal Revenue must approve their filing. In criminal actions involving violations of the tariff and Customs Code and other laws enforced by the Bureau of Customs, the Commissioner of Customs must approve their filing. (Rules of Court, Rule 110, sec. 2a; n)

The institution of the criminal action shall interrupt the running of the period of prescription. (Rules of Court, Rule 110, sec. 1, par. 2a)

SEC. 3. Prosecution of criminal actions. – All criminal actions shall be conducted and prosecuted under the direction and control of the public prosecutor. In criminal actions involving violation of the National Internal Revenue Code or other laws enforced by the Bureau of Internal Revenue, and violations of the Tariff and Customs Code or other laws enforced by the Bureau of Customs, the prosecution may be conducted by their respective duly deputized legal officers. (Rules of Court, Rule 110, sec. 5, par. 6a)

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 Chairman of the Division. In case of doubt on the existence of probable cause, the Division may order the prosecutor to present additional evidence, ex parte, within five days from notice. (Rules of Court, Rule 112, sec. 6a)

SEC. 5. When search warrant may issue. – The Division may issue a search warrant signed by its Chairman following the requirements of Rule 126 of the Rules of Court. (n)

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 his release and appearance before the Division to which his case is assigned. The judge who accepted the bail and released the accused shall inform the Division that issued the order of arrest of his action and forward to it the papers relative to the case. (Rules of Court, Rule 114, sec. 17a)

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 himself to its orders and processes. If convicted, and the case is appealed to the Court en banc or to the Supreme Court, he will surrender himself for the execution of such judgment as the Court en banc or the Supreme Court may render; or that, in the event the case is to be tried anew or remained for a new trial, he shall appear before the Division to which it may be remanded and submit himself to its orders and processes. Rules of Court, Rule 114, sec. 2a)

SEC. 8. Release order. – The Clerk of Court shall issue the corresponding release order. (Rules of Court, Rule 114, sec. 3a)

SEC. 9. Appeal; period to appeal. – (a) An appeal to the Court in criminal cases decided by a Regional Trial Court in the exercise of its original jurisdiction shall be taken by filing a notice of appeal pursuant to Sections 3(a) and 6, Rule 122 of the Rules of Court within fifteen days from receipt of a copy of the decision or final order with the court which rendered the final judgment or order appealed from and by serving a copy upon the adverse party. The Court in Division shall act on the appeal.

(b) An appeal to the Court en banc in criminal cases decided by the Court in Division shall be taken by filing a petition for review as provided in Rule 43 of the Rules of Court within fifteen days from receipt of a copy of the decision or resolution appealed from. The Court may, for good cause, extend the time for filing of the petition for review for an additional period not exceeding fifteen days.

(c) An appeal to the Court in criminal cases decided by the Regional Trial Courts in the exercise of their appellate jurisdiction shall be taken by filing a petition for review as provided in Rule 43 of the Rules of Court within fifteen days from receipt of a copy of the decision or final order appealed from. The Court en banc shall act on the appeal. (n)

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. He may deputized 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. (n)

SEC. 11. Inclusion of civil action in criminal action. – In cases within the jurisdiction of the Court, the criminal action and the corresponding civil action for the recovery of civil liability for taxes and penalties shall be deemed jointly instituted in the same proceeding. The filing of the criminal action shall necessarily carry with it the filing of the civil action. No right to reserve the filing of such civil action separately from the criminal action shall be allowed or recognized. (Rules of Court, Rule 111, sec. 1[a], par. 1a)

RULE 10 SUSPENSION OF COLLECTION OF TAX

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 his tax liability as provided under existing laws, except as hereinafter prescribed. (n)

SEC. 2. Who may file. – Where the collection of the amount of the taxpayer’s liability, sought by means of a demand for payment, by levy, distraint or sale of any property of the taxpayer, or by whatever means, as provided under existing laws, may jeopardized the interest of the Government or the taxpayer, an interested party may file a motion for the suspension of the collection of the tax liability. (RCTA, Rule 12, sec. 1a)

SEC. 3. When to file. – The motion for the suspension of the collection of the tax may be filed together with the petition for review or with the answer, or in a separate motion filed by the interested party at any stage of the proceedings. (RCTA, Rule 12, sec. 2)

SEC. 4. Contents and attachments of the motion. – The motion for the suspension of the collection of the tax shall be verified and shall state clearly and distinctly the facts and the grounds relied upon in support of the motion. Affidavits and other documentary evidence in support thereof shall be attached thereto, which, if uncontroverted, would be admissible in evidence as proof of the facts alleged in the motion. (RCTA, Rule 12, sec. 3a)

SEC. 5. Opposition. – Unless a shorter period is fixed by the Court because of the urgency of the motion, the adverse party shall, within five days after receipt of a copy of the motion, file an opposition thereto, if any, which shall state clearly and distinctly the facts and the grounds relied upon in support of the opposition. (RCTA, Rule 12, sec. 4)

SEC. 6. Hearing of the motion. – The movant shall, upon receipt of the opposition, set the motion for hearing at the next available motion day, and the Court shall give preference to the motion over all other cases, except criminal cases. At the hearing, both parties shall submit their respective evidence. If warranted, the Court may grant the motion if the movant shall deposit with the Court an amount in cash equal to the value of the property or goods under dispute or filing with the Court of an acceptable surety bond in an amount not more than double the disputed amount or value. However, for the sake of expediency, the Court, motu proprio or upon motion of the parties, may consolidate the hearing of the motion for the suspension of the collection of the tax with the hearing on the merits of the case. (RCTA, Rule 12, sec. 5a)

SEC. 7. Corporate surety bonds. – In the selection and qualification of surety companies, the parties and the Court shall be guided by Supreme Court Circular A.M. No. 04-7-02-SC, dated July 20, 2004. (n)

RULE 11 PRE-TRIAL

SECTION 1. Applicability. – The rule on pre-trial under Rules 18 and 118 of the Rules of Court, as amplified in A.M. No. 03-1-09-SC dated July 13, 2004 (Re: Rule on Guidelines to be Observed by Trial Court Judges and Clerk of Court in the Conduct of Pre-Trial and Use of Deposition-Discovery Measures), shall apply to all cases falling within the original jurisdiction of the Court, except that the parties may not be allowed to compromise the criminal liability or submit the case to mediation, arbitration or other mode of alternative dispute resolution. (n)

SEC. 2. Mandatory pre-trial. – In civil cases, the Clerk of Court shall set the case for pre-trial on the first available date immediately following the tenth day after the filing of the answer.

In criminal cases, the Clerk of Court shall set the case for pre-trial not later than ten days after arraignment, if the accused is detained, nor later than thirty days if the accused is on bail.

(RCTA, Rule 11, sec. 1a)

SEC. 3. Setting for an earlier date. – Where, due to the urgency of the case, either party desires that the pre-trial be set on an earlier date, such party shall so state in his pleading, in which event the clerk of Court shall set the pre-trial on the first available date immediately after the filing of the answer. (RCTA, Rule 11, sec. 2a)

SEC. 4. Duty of the Court. – The Court shall confer with the parties in pre-trial conferences with a view to narrowing the issues, making admissions of or stipulating on facts, simplifying the presentation of evidence, or otherwise assisting in the preparation for trial or possible disposition of the case in whole or in part without trial. (n)

SEC. 5. Procedure in civil cases. – In civil cases, the parties shall submit, at least three days before the pre-trial, their respective pre-trial briefs containing the following:

(a) A statement of their willingness to compromise the civil liability indicating its desired terms, except that the case shall not be subject to referral to mediation, arbitration or other mode of alternative dispute resolution;

(b) A summary of admitted facts and proposed stipulation of facts;

(c) The issues to be tried or resolved;

(d) The documents or exhibits to be presented, stating their purpose. No evidence shall be allowed to be presented and offered during the trial in support of a party’s evidence-in-chief other than those that had been pre-marked and identified, unless allowed by the Court to prevent manifest injustice;

(e) A manifestation of their having availed themselves of discovery procedures or referral to commissioners; and

(f) The numbers and names of the witnesses, the substance of their testimonies and the approximate number of hours that will be required by the parties for the presentation of their respective witnesses.

The consequence on the party at fault shall be the same as the effect of failure to appear.

Failure to file the pre-trial brief or to comply with its required contents shall have the same effect as failure to appear at the pre-trial.

(Rules of Court, Rule 18, sec. 6a)

SEC. 6. Procedure in criminal cases. –

(a) Before the preliminary conference. – Before the pre-trial conference, the Court may issue an order referring the case to the Division Clerk of Court for a preliminary conference of the parties at least three days prior to the pre-trial:

(1) To mark the documents or exhibits to be presented by the parties and copies to be attached to the records after comparison;

(2) To consider other matters as may aid in its disposition; and

(3) To inform the parties that no evidence shall be allowed to be presented and offered during the trial other than those identified and marked during the pre-trial unless allowed by the Court to prevent manifest injustice.

(Rule on Guidelines to be Observed by Trial Court Judges and Clerks of Court in the Conduct of Pre-trial and Use of Deposition-Discovery Measures, Sec. 1B[2]a)

(b) During the preliminary conference. – The Division Clerk of Court shall:

(1) Mark the documents to be presented as exhibits and copies attached to the records after comparison;

(2) Ascertain from the parties the undisputed facts and admission on the genuineness and due execution of documents marked as exhibits; and

(3) Consider such other matters as may aid in the prompt disposition of the case.

The proceedings during the preliminary conference shall be recorded in the minutes of preliminary conference to be signed by both parties and counsel. The Division Clerk of Court shall attach the minutes of preliminary conference and the exhibits to the case record before the pre-trial.

(Rule on Guidelines to be Observed by Trial Court Judges and Clerks of Court in the Conduct of Pre-trial and Use of Deposition-Discovery Measures, Sec. IB[3]a)

(c) During the pre-trial conference. – The Court at the pre-trial conference shall consider the following:

(1) Stipulation of facts and issues raised;

(2) Marking for identification of evidence of the parties;

(3) Waiver of objections to admissibility of evidence;

(4) Modification of order of trial; and

(5) Such matters as will promote a fair and expeditious trial of the criminal and civil aspects of the case.

(Rules of Court, Rule 118, sec. 1a).

All agreements or admissions made or entered during the pre-trial conference shall be in writing and signed by the accused and counsel; otherwise, they cannot be used in evidence against the accused. The agreements shall be subject to the approval of the Court.

(Rule on Guidelines to be Observed by Trial Court Judges and Clerks of Court in the Conduct of Pre-trial and Use of Deposition –Discovery Measures, Sec. IB[8]a; and Rules of Court, Rule 118, sec. 2a)

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 his absence and lack of cooperation. (Rules of Court, Rule 118, sec. 3a)

(d) Pre-trial order. – After the pre-trial conference, the Court shall issue a pre-trial order reciting the actions taken, the facts stipulated, the admissions made, evidence marked, and such other matters covered during the pre-trial conference. The order shall bind the parties, limit the trial to matters not disposed of and control the course of the action during the trial, unless modified by the Court to prevent manifest injustice. (Rules of Court, Rule 118, sec. 4a)

RULE 12 TRIAL

SECTION 1. Procedure. – The Court shall conduct the trial in accordance with Rule 30 of the Rules of Court in civil cases and Rule 119 thereof in criminal cases. (n)

SEC. 2. Power of the Court to receive evidence. – The Court may receive evidence in the following cases:

(a) In all cases falling within the original jurisdiction of the Court in Division pursuant to Section 3, Rule 4 of these Rules; and

(b) In appeals in both civil and criminal cases where the Court grants a new trial pursuant to Section 2, Rule 53 and Section 12, Rule 124 of the Rules of Court.

(n)

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 his 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.

(n)

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 to any question or to the admission of exhibits, which objections shall be resolved by the Court upon submission of his report and the transcripts within ten days from termination of the hearing. (Rules of Court, Rule 30, sec. 9a)

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. – The party who desires to introduce in evidence such voluminous documents or long accounts must, upon motion and approval by the Court, refer the voluminous documents to an independent Certified Public Accountant (CPA) for the purpose of presenting:

(1) a summary containing, among other matters, a chronological listing of the numbers, dates and amounts covered by the invoices or receipts and the amount(s) of taxes paid and

(2) a certification of an independent CPA attesting to the correctness of the contents of the summary after making an examination, evaluation and audit of voluminous receipts, invoices or long accounts.

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

(b) Pre-marking and availability of originals. – The receipts, invoices, vouchers or other documents covering the said accounts or payment to be introduced in evidence must be pre-marked by the party concerned and submitted to the Court in order to be made accessible to the adverse party who desires to check and verify the correctness of the summary and CPA certification. The original copies of the voluminous receipts, invoices or accounts must be ready for verification and comparison in case doubt on its authenticity is raised during the hearing or resolution of the formal offer of evidence. (n)

RULE 13 TRIAL BY COMMISSIONER

SECTION 1. Appointment of independent Certified Public Accountant (CPA). – A party desiring to present voluminous documents in evidence before the Court may secure the services of an independent certified Public Accountant (CPA) at its own expense. The Court shall commission the latter as an officer of the Court solely for the purpose of performing such audit functions as the Court may direct. (n)

SEC. 2. Duties of independent CPA. – The independent CPA shall perform audit functions in accordance with the generally accepted accounting principles, rules and regulations, which shall include:

(a) Examination and verification of receipts, invoices, vouchers and other long accounts;

(b) Reproduction of, and comparison of such reproduction with, and certification that the same are faithful copies of original documents, and pre-marking of documentary exhibits consisting of voluminous documents;

(c) Preparation of schedules or summaries containing a chronological listing of the numbers, dates and amounts covered by receipts or invoices or other relevant documents and the amount(s) of taxes paid;

(d) Making findings as to compliance with substantiation requirements under pertinent tax laws, regulations and jurisprudence;

(e) Submission of a formal report with certification of authenticity and veracity of findings and conclusions in the performance of the audit;

(f) Testifying on such formal report; and

(g) Performing such other functions as the Court may direct.

SEC. 3. Findings of independent CPA. – The submission by the independent CPA of pre-marked documentary exhibits shall be subject to verification and comparison with the original documents, the availability of which shall be the primary responsibility of the party possessing such documents and, secondarily, by the independent CPA. The findings and conclusions of the independent CPA may be challenged by the parties and shall not be conclusive upon the Court, which may, in whole or in part, adopt such findings and conclusions subject to verification. (n)

SEC. 4. Other referral to commissioner. – Whenever practicable and convenient, the Court may apply the procedure prescribed in Rule 32 of the Rules of Court. When the parties stipulate that a commissioner’s findings of fact shall be final, only questions of law shall thereafter be considered. (n)

SEC. 5. Compensation of Commissioner. – The Court shall allow the commissioners such reasonable compensation as the circumstances of the case may warrant. (Rules of Court, Rule 32, sec. 13a)

RULE 14 JUDGMENT, ITS ENTRY AND EXECUTION

SECTION 1. Rendition of judgment. – The Court shall decide the cases brought before it in accordance with Section 15, paragraph (1), Article VIII of the 1987 Constitution. The conclusions of the Court shall be reached in consultation by the Members on the merits of the case before its assignment to a Member for the writing of the decision. The presiding justice or chairman of the Division shall include the case in an agenda for a meeting of the Court en banc or in Division, as the case may be, for its deliberation. If a majority of the justices of the Court en banc or in Division agree on the draft decision, the ponente shall finalize the decision for the signature of the concurring justices and its immediate promulgation. Any justice of the Court en banc or in Division may submit a separate written concurring or dissenting opinion within twenty days from the date of the voting on the case. The concurring and dissenting opinions, together with the majority opinion, shall be jointly promulgated and attached to the rollo.

In deciding the case, the Court may not limit itself to the issues stipulated by the parties but may also rule upon related issues necessary to achieve an orderly disposition of the case. (2002 Internal Rules of the Court of Appeals, Rule VI, secs. 9 and 10a; and Rules of Court, Rule 51, sec. 2a)

SEC. 2. Form of decision. – Every decision or final resolution of the Court shall be in writing, stating clearly and distinctly the findings of fact and the conclusions of law on which it is based, and signed by the justices concurring therein. Such findings and conclusions shall be contained in the decision or final resolution itself. However, in appealed cases, the Court may adopt by reference the findings and conclusions set forth in the decision, order or resolution appealed from.

Every decision of the Court shall be accompanied by a certification signed by the presiding justice or acting presiding justice, chairman or most senior member as acting chairman of the Court en banc or in Division in the following form:

“Pursuant to Article VIII, Section 13 of the Constitution, it is hereby certified that the conclusions in the above decision were reached in consultation before the case was assigned to the writer of the opinion of the Court.”

(Rules of Court, Rule 51, sec 5a; and 2002 Internal Rules of the Court of Appeals, Rule VI, sec. 11a)

SEC. 3. Amended decision. – Any action modifying or reversing a decision of the Court en banc or in Division shall be denominated as Amended Decision. (2002 Internal Rules of the Court of Appeals, Rule VI, sec. 12a)

SEC. 4. Resolution. – Any disposition of the Court en banc or in Divisions other than on the merits shall be embodied in a Resolution.

(2002 Internal Rules of the Court of Appeals, Rule VI, sec. 12a)

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. He shall see to it that the decision and resolution are properly signed by the concurring and dissenting justices and the required certification is duly accomplished.

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

(2002 Internal Rules of the Court of Appeals, Rule VI, sec. 13a; and Rules of Court, Rule 51, sec. 9a)

In criminal cases originally filed with and decided by the Court in Division, the chairman shall cause the decision or resolution to be filed with the Division Clerk of Court in a sealed envelope, who shall schedule its promulgation, giving notice to the prosecution, the accused personally or through his 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 him before the Court. However, if he is detained outside Metro Manila, the Court may authorize the executive judge of the Regional Trial Court having territorial jurisdiction over the place of detention to promulgate the decision or resolution at such place

(Rules of Court, Rule 120, sec. 6a)

SEC. 6. Entry of judgment and final resolution. – If no appeal or motion for reconsideration or new trial is filed within the time provided in these Rules, the Clerk of Court shall forthwith enter the judgment or final resolution in the book of judgment. The date when the judgment or final resolution becomes executory shall be deemed the date of its entry. The entry shall contain the dispositive part of the judgment or final resolution and shall be signed by the Clerk of Court, with a certification that such judgment or resolution has become final and executory. (Rules of Court, Rule 51, sec. 10a)

SEC. 7. Execution of judgment. – Upon the expiration of the period to appeal from a judgment or order that disposes of the action or proceeding and no appeal has been duly perfected, execution shall issue as a matter of right, on motion.

If an appeal has been duly perfected and finally resolved, execution may be forthwith applied for in the court of origin, on motion of the judgment oblige, submitting therewith a certified true copy of the judgment or final order sought to be enforced and of its entry, with notice to the adverse party.

(Rules of Court, Rule 39, sec. 1a)

RULE 15 MOTION FOR RECONSIDERATION OR NEW TRIAL

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. He shall file a motion for reconsideration or new trial within fifteen days from the date he received notice of the decision, resolution or order of the Court in question. (RCTA, Rule 13, sec. 1a)

SEC. 2. Opposition. – The adverse party may file an opposition to the motion for reconsideration or new trial within ten days after his receipt of a copy of the motion for reconsideration or new trial of a decision, resolution or order of the Court. (RCTA, Rule 13, sec. 2a)

SEC. 3. Hearing of the Motion. – The motion for reconsideration or new trial, as well as the opposition thereto, shall embody all supporting arguments and the movant shall set the same for hearing on the next available motion day. Upon the expiration of the period set forth in the next preceding section, without any opposition having been filed by the other party, the motion for reconsideration or new trial shall be considered submitted for resolution, unless the Court deems it necessary to hear the parties on oral argument, in which the case the Court shall issue the proper order. (RCTA, Rule 13, sec. 3a)

SEC. 4. Effect of filing the motion. – The filing of a motion for reconsideration or new trial shall suspend the running of the period within which an appeal may be perfected. (RCTA, Rule 13, sec. 4a)

SEC. 5. Grounds of motion for new trial. – A motion for new trial may be based on one or more of the following causes materially affecting the substantial rights of the movant:

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

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

A motion for new trial shall include all grounds then available and those not included shall be deemed waived.

(Rules of Court, Rule 37, sec. 1a)

SEC. 6. Contents of motion for reconsideration or new trial and notice. – The motion shall be in writing stating its grounds, a written notice of which shall be served by the movant on the adverse party.

A motion for new trial shall be proved in the manner provided for proof of motions. A motion for the cause mentioned in subparagraph (a) of the preceding section shall be supported by affidavits of merits which may be rebutted by counter-affidavits. A motion for the cause mentioned in subparagraph (b) of the preceding section shall be supported by affidavits of the witnesses by whom such evidence is expected to be given, or by duly authenticated documents which are proposed to be introduced in evidence.

A motion for reconsideration or new trial that does not comply with the foregoing provisions shall be deemed pro forma, which shall not toll the reglementary period for appeal.

(Rules of Court, Rule 37, sec. 2a)

SEC. 7. No second motion for reconsideration or for new trial. – No party shall be allowed to file a second motion for reconsideration of a decision, final resolution or order; or for new trial. (Rules of Court, Rule 52, sec. 2a)

SEC. 8. Ruling. – The Court shall resolve the motion for reconsideration or new trial within three months from the time it is deemed submitted for resolution. (Rules of Court, Rule 52, sec. 3a)

RULE 16 APPEAL

SECTION 1. Appeal to Supreme Court by petition for review on certiorari. – A party adversely affected by a decision or ruling of the Court en banc may appeal therefrom by filing with the Supreme Court a verified petition for review on certiorari within fifteen days from receipt of a copy of the decision or resolution, as provided in Rule 45 of the Rules of Court. If such party has filed a motion for reconsideration or for new trial, the period herein fixed shall run from the party’s receipt of a copy of the resolution denying the motion for reconsideration or for new trial. (n)

SEC. 2. Effect of appeal. – The motion for reconsideration or for new trial filed before the Court shall be deemed abandoned if, during its pendency, the movant shall appeal to the supreme Court pursuant to Section 1 of this Rule. (2002 Internal Rules of the Court of Appeals, Rule VI, sec. 15a)

RULE 17 LEGAL FEES AND COSTS

SECTION 1. Additional fees and costs. – In addition to the fees prescribed in Rule 141 of the Rules of Court and all amendments thereto, the following legal fees and costs shall be collected:

(a) For reception of evidence by a Court official pursuant to Section 4, Rule 12 of these Rules five hundred pesos for each day of actual sessions; and

(b) For any other services of the Clerk of Court and other Court officials not provided for in Rule 141 of the Rules of Court, two hundred pesos.

RULE 18 EFFECTIVITY

SECTION 1. Effectivity of the Revised Rules. – These Rules shall take effect on the fifteenth day of December 2005 following their publication in a newspaper of general circulation in the Philippines not later than 25 November 2005. (n)

d) Special Classes. The assessment level for all lands, buildings and other improvements thereon, actually, directly and exclusively used for educational, cultural, scientific or recreational purposes, as well as hospitals not owned and operated by the government or by any of its instrumentalities shall be fifteen percent (15%) of the market value of such properties. The special class of real properties used for recreational purposes herein referred to shall apply only to such properties which are owned by sports or athletic clubs or such other recreational organizations not operated primarily for profit. (Amendments to Certain Sections of P.D. No. 464 As Amended (Real Property Tax Code), Presidential Decree No. 1621, [April 19, 1979])

For the first general revision of assessment to be undertaken after the approval of this Code and every three years thereafter, the assessment levels hereinabove prescribed for the different classes of real property may be increased at rates to be fixed by the Minister of Finance, but in no case shall such increase in rates exceed ten percent of the assessment levels herein prescribed for each class of real property. (Amendments to Certain Sections of P.D. No. 464 As Amended (Real Property Tax Code), Presidential Decree No. 1621, [April 19, 1979])

Section 21. General Revision of Assessments Once in Every Three Years. — Beginning July 1, 1981 to June 30, 1982, the provincial or city assessor shall make a general revision of real property assessments in the province or city to take effect on January 1, 1983, and once every three years thereafter; Provided, however, That if property values in a province or city, or in any municipality, have greatly changed since the last general revision, the provincial or city assessor may, with the approval of the Minister of Finance or upon his discretion, undertake a general revision of assessments in the province or city, or in any municipality before the third year from the effectivity of the last general revision. (Amendments to Certain Sections of P.D. No. 464 As Amended (Real Property Tax Code), Presidential Decree No. 1621, [April 19, 1979])

Section 22. Valuation of Real Property. Upon the discovery of real property or during the general revision of property assessments as provided in Section twenty-one of this Code or at any time when requested by the person in whose name the property is declared, the provincial or city assessor or his authorized deputy shall make an appraisal and assessment in accordance with Section five hereof of the real property listed and described in the declaration irrespective of any previous assessment or taxpayer's valuation thereon: Provided; however, That the assessment of real property shall not be increased oftener than once every five years in the absence of new improvements increasing the value of said property or of any change in its use, except as otherwise provided in this Code.

Section 23. Certification of Revised Values to the Secretary of Finance. When the provincial or city assessor shall have finished a general revision of property assessments for any province, municipality or city, he shall so certify to the Secretary of Finance and the assessments shall become effective and taxes shall accrue and be payable thereunder in accordance with the provisions of this Code.

Section 24. Date of Effectivity of Assessment or Reassessment. All assessments or reassessments made after the first day of January of any year shall take effect on the first day of January of the succeeding year: Provided, however, That the reassessment of real property due to its partial or total destruction, or to a major change in its actual use, or to any great and sudden inflation or deflation of real property values, or to the gross illegality of the assessment when made or to any other abnormal cause, shall be made within ninety days from the date any such cause or causes occurred, the same to take effect at the beginning of the quarter next following the reassessment.

Section 25. Assessment of Property Subject to Back Taxes. Real property declared for the first time shall have back taxes assessed against it for the period during which it would have been liable if assessed from the first in proper course but in no case for more than ten years prior to the year of initial assessment; Provided, however, that the back taxes shall be computed on the basis of the applicable schedule of values in force during the corresponding period.

If said taxes are paid before the expiration of the tax collection period next ensuing, no penalty for delinquency shall be imposed, otherwise the taxes shall be subject to all the penalties to which they would have been liable and had they originally become delinquent after assessment of the property in the usual course.

Section 26. Binding effect of Assessment or Reassessment. All assessments and reassessments made under the provisions of this Code shall be valid and binding on all persons having legal interest on the property.

Section 27. Notification of New or Revised Assessments. When real property is assessed for the first time or when an exercising assessment is increased or decreased, the province or city shall within thirty days give written notice of such new or revised assessment to the person in whose name the property is declared. The notice may be delivered personally to such person or to the occupant in possession, if any, or by mail to the last known address of the person to be served, or through the assistance of the barrio captain.

Section 28. Appraising Machinery. The current market value of the machinery shall be determined on the basis of the original cost in the case of newly acquired machinery not yet depreciated and is appraised within the year of its purchase. In the case of all others, the current market value shall be determined by dividing the remaining economic life of the machinery by its economic life and multiplied by the replacement or reproduction cost (new) of said machinery.

If the machinery is imported, replacement or reproduction cost (new) shall be the original acquisition cost which would normally include such costs as freight and insurance charges, brokerage, arrastre and handling, customs duties and taxes plus cost of inland transportation and handling, and significant installation charges at the present site. The cost in foreign currency of imported machinery shall be converted to peso cost on the basis of foreign currency exchange rates as fixed by the Central Bank of the Philippines.

Section 29. Depreciation Allowance for Machinery. For purposes of assessment, a depreciation allowance shall be made for machinery at a rate not exceeding ten per cent of its original cost or its replacement or reproduction cost (new), as the case may be, for each year of use: Provided, That the remaining value for all kinds of machinery shall be fixed at not less than twenty percent of such original or replacement cost for so long as the machinery is useful and in operation.

CHAPTER III ASSESSMENT APPEALS

Section 30. Local Board of Assessment Appeals. Any owner who is not satisfied with the action of the provincial or city assessor in the assessment of his property may, within sixty days from the date of receipt by him of the written notice of assessment as provided in this Code, appeal to the Board of Assessment appeals of the province or city, by filing with it a petition under oath using the form prescribed for the purpose, together with copies of the tax declarations and such affidavit or documents submitted in support of the appeal.

Section 31. Organization, Powers and Functions of the local Board of Assessment Appeals. The Local Board of Assessment Appeals shall be composed of three members: the Register of Deeds, as Chairman, the Provincial of City Auditor and the Provincial or City Engineer, as Members, who shall serve as such in an ex-officio capacity without additional compensation. In provinces or cities without Provincial or City Engineers, the Highway District Engineer shall serve as member of the Board, likewise in an ex-officio capacity without additional compensation. In the absence of a regular appointee, the officer performing the duties of the Register of Deeds, or the Provincial or City Auditor, or the Provincial, City or Highway District Engineer whether in an acting capacity or as a duly-designated officer-in-charge shall automatically become the Chairman or member of the said Board, as the case may be.

The Chairman of the Board shall have the power to designate any government employee of the province or city to serve as Secretary of the Board also without additional compensation.

The Chairman and members of the Local Board shall enter into the duties of their respective positions without need of further appointment or special designation immediately upon approval of this Code. The members of the Board shall each take the following oath, copy of which shall be furnished the Secretary of Finance:

"I ____________, having been appointed to the position of __________, hereby solemnly swear that I will well and faithfully discharge to the best of my ability and duties of my present position and of all others I may hereafter hold under the Republic of the Philippines, and that I will support and defend the Constitution of the Philippines; and that I will obey the laws, legal orders, and decrees promulgated by the duly constituted authorities of the Republic of the Philippines; and that I will well and truly hear and determine all matters and issues between taxpayers and the provincial or city assessor submitted for my decision, and that I impose this obligation upon myself voluntarily, without mental reservation or purpose of evasion.

So help me God.

_________________

Signature

SUBSCRIBED AND SWORN to before as this ______ day of __________ A.D. _________ at ____________ Philippines.

___________________

Signature of Officer administering oath"

Section 32. Meetings. The local Board shall hold sessions at least once a month, and as often as may be necessary for the prompt disposition of the appealed cases pending before it. No member of the Board shall be entitled to per diems or travelling expenses for his attendance in Board sessions, except when conducting an ocular inspection in connection with a case under appeal.

Section 33. Expenses of the Board. All expenses of the Local Board of Assessment Appeals shall be charged against the general fund of the province or city, as the case may be. Local Boards and councils shall appropriate the necessary funds to enable the Board of Assessment Appeals in their respective localities to operate effectively.

Section 34. Action by the Local Board of Assessment Appeals. The Local Board of Assessment Appeals shall decide the appeal within one hundred and twenty days from the date of receipt of such appeal. The decision rendered must be based on substantial evidence presented at the hearing or at least contained in the record and disclosed to the parties or such relevant evidence as a reasonable mind might accept as adequate to support the conclusion.

In the exercise of its appellate jurisdiction, the Board shall have the power to summon witnesses, administer oaths, conduct ocular inspection, take depositions, and issue subpoena and subpoena duces tecum. The proceedings of the Board shall be conducted solely for the purpose of ascertaining the truth without necessarily adhering to technical rules applicable in judicial proceedings.

The Secretary of the Board shall furnish the property owner and the Provincial or City Assessor with a copy each of the decision of the Board. In case the provincial or city assessor concurs in the revision or the assessment, it shall be his duty to notify the property owner of such fact using the form prescribed for the purpose. The owner or administrator of the property of the assessor who is not satisfied with the decision of the Board of Assessment Appeals, may, within thirty days after receipt of the decision of the Local Board, appeal to the Central Board of Assessment Appeals by filing his appeal under oath with the Secretary of the proper provincial or city Board of Assessment Appeals using the prescribed form stating therein the grounds and the reasons for the appeal, and attaching thereto any evidence pertinent to the case. A copy of the appeal should be also furnished the Central Board of Assessment Appeals, through its Chairman, by the appellant.

Within ten (10) days from receipt of the appeal, the Secretary of the Board of Assessment Appeals concerned shall forward the same and all papers related thereto, to the Central Board of Assessment Appeals through the Chairman thereof.

Section 35. Central Board of Assessment Appeals, its Organization. The Central Board of Assessment Appeals shall be composed of the Secretary of Finance, as Chairman, the Secretary of Justice and the Secretary of Local Government and Community Development, as Members, who shall serve without additional compensation.

The Central Board of Assessment Appeals shall be assisted by a Board of Hearing Commissioners and a staff, which shall be initially composed of the following positions with compensation at the minimum rates indicated hereunder:

Position - Annual Salary

1. One Central Board Chief Hearing Commissioner - P17,400.00

2. Four Central Board Hearing Commissioners - P16,200.00 each

3. One Central Board Secretary - P9,600.00

4. Four Central Board Stenographers - P6,600.00 each

5. Three Central Board Docket and Filing Clerks - P4,800.00

The annual appropriations for the salaries of the abovementioned positions and for such other positions as the Central Board may deem necessary to create hereafter, as well as sufficient appropriations for other operational requirements of the Board of Hearing Commissioners and its staff, shall henceforth be included in the annual budgets of the Department of Finance in the corresponding General Appropriations Decree or laws.

Any provision of law to the contrary notwithstanding, appointment to the positions of Central Board Chief Hearing Commissioner, Central Board Hearing Commissioners and Central Board Secretary shall be exempt from the requirements and restrictions of the Civil Service Law, rules and regulations as well as those pertaining to position-item classifications and salary standardization. Any government retiree may be appointed to the Board of Hearing Commissioners and upon his appointment, he shall not be required to reimburse or refund any gratuity received from the government nor shall any pension or annuity to which he is entitled be suspended or reduced on account of his employment. A member of the Board of Hearing Commissioners shall serve until he reaches the age of seventy unless he chooses to retire from the service or sooner removed for cause, as provided by law. The members of the Board of Hearing Commissioners shall be members of the bar, civil or mechanical engineers, or certified public accountants with at least five years supervisory and-or field experience in real property assessment work.

The Secretary of Finance, as Chairman of the Central Board of Assessment Appeals, shall appoint the members of the Board of Hearing Commissioners and its staff.

The initial sum of one hundred twenty five thousand pesos is hereby appropriated from the General Fund in the National Treasury, not otherwise appropriated, to finance the operations of the Central Board of Assessment Appeals. For every fiscal year thereafter, such sums as may be necessary for the operations of the said Board shall be included in the appropriations of the Department of Finance in the corresponding General Appropriations Decree or laws.

The Chairman and Members of the Central Board shall enter into the duties of their respective positions, without need of further appointment or special designation, immediately upon approval of this Code.

Section 36. Scope of Powers and Functions. The Central Board of Assessment Appeals shall have jurisdiction, over appealed assessment cases decided by the Local Board of Assessment Appeals. The said Board shall decide cases brought on appeal within twelve (12) months from the date of receipt, which decision shall become final and executory after the lapse of fifteen (15) days from the date of receipt of a copy of the decision by the appellant.

In the exercise of its appellate jurisdiction, the Central Board of Assessment Appeals, or upon express authority, the Hearing Commissioner, shall have the power to summon witnesses, administer oaths, take depositions, and issue subpoenas and subpoenas duces tecum.

The Central Board of Assessment Appeals shall adopt and promulgate rules of procedure relative to the conduct of its business.

Section 37. Effect of Appeals on the Payment of the Real Property Tax. Appeals on assessments of real property made under the provisions of this Code shall, in no case, suspend the collection of the corresponding realty taxes on the property involved as assessed by the provincial or city assessor, without prejudice to subsequent adjustment depending upon the final outcome of the appeal.

CHAPTER IV IMPOSITION OF REAL PROPERTY TAX

Section 38. Incidence of Real Property Tax. There shall be levied, assessed and collected in all provinces, cities and municipalities an annual ad valorem tax on real property, such as land, buildings, machinery and other improvements affixed or attached to real property not hereinafter specifically exempted.

Section 39. Rates of Levy. The provincial, city or municipal board or council shall fix a uniform rate of real property tax applicable to their respective localities as follows:

(1) In the case of a province, the tax shall be fixed by ordinance of the provincial board at the rate of not less than one fourth of one percent but not more than one-half of one percent of the assessed value of real property.

(2) In the case of a city, the tax shall be fixed by ordinance of the municipal board or city council at the rate of not less than one-half of one percent but not more than two percent of the assessed value of real property.

The ordinance fixing the rate of real property tax shall be enacted by the local board or council not later than fifteenth day of September of the year next preceding the year the tax shall begin to accrue. Within five days after enactment, the board or council secretary shall forward the ordinance to the local chief executive for his approval and signature. If he considers any such ordinance prejudicial to the public welfare, he may veto it by signifying to the local board or council concerned his disapproval thereof in writing. The local board or council may, by a two-thirds (2/3) vote of all its members and within fifteen days from the date of receipt of a copy of the vetoed ordinance, repass the same over the veto, in which case it shall be deemed approved without the local chief executive's approval or signature. If the local chief executive fails to approve or veto the ordinance within ten days after receipt of a copy thereof, it shall likewise be deemed approved.

The ordinance fixing the rate of real property tax shall remain in full force and effect unless amended on or before September fifteenth of the year next preceding the one in which the amendment is to take effect. Any ordinance reducing the existing rates of real property tax shall be subject to review by the Secretary of Finance who shall act thereon within sixty days upon receipt of a copy thereof; otherwise, the reduced rates shall be deemed effective on the first day of January of the succeeding year.

Section 40. Exemptions from Real Property Tax. The exemption shall be as follows:

(a) Real property owned by the Republic of the Philippines or any of its political subdivisions and any government-owned corporation so exempt by its charter: Provided; however, That this exemption shall not apply to real property of the abovenamed entities the beneficial use of which has been granted, for consideration or otherwise, to a taxable person.

(b) Non-profit cemeteries or burial grounds.

(c) Charitable institutions, churches, personages or convents appurtenant thereto, mosques, and all land, buildings, and improvements actually, directly and exclusively used for religious or charitable purposes.

(d) Real property in any one city or municipality belonging to a single owner, the entire assessed valuation of which is not in excess of one thousand pesos; Provided, however, That the property so exempt shall be assessed and records thereof kept as in other cases. (Amendments to Certain Sections of P.D. No. 464 As Amended (Real Property Tax Code), Presidential Decree No. 1621, [April 19, 1979])

(e) Land acquired by grant, purchase of lease from the public domain for conversion into dairy farms for a period of five years from the time of such conversion; and machinery of a pioneer and preferred industry as certified by the Board of Investments used or operated for industrial, agricultural, manufacturing or mining purposes, during the first three years of the operation of the machinery. (as amended by PD 1383)

(f) Perennial trees and plants of economic value, except where the land upon which they grow is planted principally to such growth.

(g) Real property exempt under other laws.

(h) pasture and/or grazing lands acquired by grant, purchase, or lease from the public domain, actually used for livestock production, for a period of five years beginning with calendar year 1977, and for acquisitions made thereafter, the exemption shall begin with the year of such acquisition (Amending Section 40 of P.D. No. 464 (Real Property Tax Code), Presidential Decree No. 939, [May 29, 1976])

CHAPTER V SPECIAL LEVIES ON REAL PROPERTY

Section 41. An additional one per cent tax on real property for the Special Education Fund. — There is hereby imposed an annual tax of one per cent on real property to accrue to the Special Education Fund created under Republic Act No. 5447, which shall be in addition to the basic real property tax which local governments are authorized to levy, assess, and collect under this Code: Provided, That real property granted exemption under Section 40 of this Code shall also be exempt from the imposition accruing to the Special Education Fund. (Amendments to Certain Sections of P.D. No. 464 As Amended (Real Property Tax Code), Presidential Decree No. 1621, [April 19, 1979], Presidential Decree No. 1913, [March 29, 1984])

Section 42. Additional ad valorem tax on idle lands. a. There is hereby imposed an additional real property tax on idle lands at the rate of FIVE PER CENT PER ANNUM based on the assessed value of the property as determined by the Provincial or City Assessor of the Province or City where the property is located, or by the Municipal Assessor in the case of idle lands situated in the municipalities of Metropolitan Manila.

b. The additional ad valorem tax levied in the preceding paragraph shall begin to accrue on July 1, 1978, any provision of law to the contrary notwithstanding. (Amending P.D. No. 464 (Real Property Tax Code) Re: Additional Tax on Idle Lands, Presidential Decree No. 1446, [June 11, 1978])

Section 43. Idle lands, coverage. For purposes of this Decree, idle lands shall include the following:

a. Agricultural lands suitable for cultivation, dairying, inland fishery, and other agricultural uses, one half of which remain uncultivated or unimproved by the owner or owners thereof.

b. Lands, other than agricultural, located in a City or Municipality, more than 2,000 square meters in area one half of which remain unutilized or unimproved by the owner or owners thereof. This Section shall likewise apply to residential lots in subdivisions duly approved by proper authorities, the ownership of which has been transferred to individual owners, who shall be liable for the additional tax. Individual lots of such subdivisions, the ownership of which has not been transferred to the buyer shall be considered as forming part of the subdivision, and shall be subject to the additional tax payable by subdivision operator. (Amending P.D. No. 464 (Real Property Tax Code) Re: Additional Tax on Idle Lands, Presidential Decree No. 1446, [June 11, 1978])

Section 44. Idle lands exempt from tax. The additional levy on idle lands shall not apply to landowners who are unable to improve, utilize or cultivate their lands due to any of the following causes:

a. Adverse peace and order conditions as certified by the Provincial Commander of the Philippine Constabulary. However, if within one year upon restoration of the peace and order in the locality as certified by the said Provincial Commander, the said land remains unimproved, unutilized, uncultivated, the additional tax provided under Section forty two hereof shall be imposed.

b. Financial losses of the owner due to fire, flood, typhoon, earthquake and other causes of similar nature declared by the owner in a sworn statement to be submitted to the Provincial, City or Municipal Assessor stating the ground or grounds therefore, which shall be accompanied by a certification from the proper agency of the local government concerned. If the idle land is not improved to the extent prescribed in the next preceding Section within two years from the date of the occurrence of the loss, the tax provided under Section forty-two hereof shall be imposed subject to rules and regulations issued in connection herewith.

c. Existing court litigations involving the land subject to tax mentioned in this chapter as certified by the Court under which the case is pending unless said land is not improved within one year after the final adjudication of the case to the extent provided in the next preceding Section, in which case, the tax provided under Section forty-two hereof shall be imposed.

d. Necessity to leave the land in a fallow state as certified by the Provincial, City or Municipal Agriculturist, or in their absence, by the Secretary of Agriculture or his duly authorized representatives, stating among others, the length of time within which the land shall be considered ready for production. If the idle land is not improved within one year after the termination of such period of time, the tax provided under Section forty-two hereof shall be imposed.

e. Unfavorable physical factors such as rocky nature of ground, and uneven topography in the case of agricultural land, which render the land unsuitable for cultivation as certified by the Provincial, City or Municipal Agriculturist, or in their absence, by the Secretary of Agriculture or his duly authorized representatives.

f. Acquired subdivision lots which remain idle due to the failure of the subdivision developer or owner to develop the said subdivision in accordance with the approved subdivision plan as determined by the assessor. If within one year, from the time the subdivision is developed, the said lot still remains unutilized or unimproved, the tax provided under Section forty-two hereof shall be imposed. (Amending P.D. No. 464 (Real Property Tax Code) Re: Additional Tax on Idle Lands, Presidential Decree No. 1446, [June 11, 1978])

Section 45. Application for exemption. a. The owner, administrator, or any person having legal interest on the land, desiring to avail of the exemptions enumerated under Section 44 hereof, shall file within six months from the date of effectivity of this Decree, the corresponding application with the Assessor of the Province, City or Municipality, where the land is situated. The application shall state the ground or grounds under which the exemption is being claimed. (Amending P.D. No. 464 (Real Property Tax Code) Re: Additional Tax on Idle Lands, Presidential Decree No. 1446, [June 11, 1978])

Section 46. Listing of idle lands by the assessor. The provincial or city assessor shall make and keep an updated record of idle lands within one year after the approval of this Code and every year thereafter. For purposes of collection, the provincial or city assessor shall furnish a copy thereof to the provincial, city or municipal treasurer, as the case may be, who shall notify on the basis of such record the person having legal interest on the lands of the imposition of the additional tax.

Section 47. Special levy by local governments. The provincial, city, municipal boards or councils may, by ordinance, provide for the imposition and collection of a special levy on the lands comprised within the province, city, or municipality or parts thereof especially benefited by the laying out, opening, constructing, straightening, widening, grading, paying, curbing, walling, deepening, or otherwise establishing, repairing, enlarging, or improving public avenues, roads, streets, alleys, sidewalks, parks, plazas, bridges, landing places, wharves, piers, docks, levees, reservoirs, waterworks, water courses, esteros, canals, drains, and sewers: Provided, however, That the special levy herein authorized shall correspond only to a part not exceeding sixty per cent of the costs of said improvements or infrastructures financed by the province, city or municipality, as the case may be, including the costs of acquiring land and such other real property in connection therewith. Within the meaning of this Section, all lands comprised within the district benefited, except lands exempt from the real property tax under Section forty hereof, shall be subject to the payment of the special levy.

Section 48. Ordinance imposing a special levy. Tax ordinance providing for the levying and collection of a special levy shall describe with reasonable accuracy the nature, extent and location of the work to be undertaken; the probable cost of the proposed work so established, the limits whereof shall be stated by monuments and lines, and the number of annual installments, which shall not be less than five nor more than ten, in which said special levy shall be payable. The provincial board, municipal board or city council, or municipal council shall not be obliged, in the apportionment and computation of the special levy, to establish a uniform percentage of all lands subject to the payment of the tax for the entire district, but it may fix different rates for different parts or sections thereof, depending on whether such land is more or less benefited by the proposed work; nor shall the provincial board, the municipal board or city council, or municipal council be required to follow the percentage limitations imposed by Section thirty-nine of this Code.

The provincial, city or municipal engineer shall make the plans, specifications and estimates of the proposed work.

Section 49. Publication of proposed ordinance imposing a special levy. The proposed special levy or ordinance shall be published, with the list of the owners of the land affected thereby, once a week for four consecutive weeks in any newspaper published in the locality, one in English, and one in the local dialect, if there be any, and in default of local papers, in any newspaper of general circulation in the province, city or municipality. The said ordinance in English, and in the local dialect, shall also be posted in the city or municipality and places affected by said improvement, and shall also be published once a week during four consecutive weeks by crier.

The provincial, city or municipal secretary, shall, on application, furnish a copy of the proposed ordinance to each landowner affected, or his agent, and shall if possible, send to all a copy of said proposed ordinance by mail or messenger.

Sec 50. Protest against special levy. Not later than thirty days after the last publication of the ordinance and list of landowners included in the zone subject to special levy, a protest may be submitted to the provincial, municipal, or city board or council, signed by a majority of the landowners affected by the proposed work, setting forth the addresses of the signers and arguments in support of their objection or protest against the improvement to be made or against the special levy imposed by ordinance. If no protest is filed within the time and under the conditions above specified, the provincial, city or municipal ordinance shall become final and effective in all points after its approval by the corresponding board or council.

Section 51. Hearing a protest. The board or council, shall designate a date and place for the hearing of the protest filed in accordance with the next preceding Section and shall give reasonable time to all protestants who have given their address and to all landowners affected by any protest, and shall order the publication once a week, during two consecutive weeks in any newspaper of the locality, if there be one, of general circulation in the province, city or municipality, or a notice in English or in the local dialect, of the place and date of the hearing to be held. Said notice shall likewise be posted in the city or municipality and places affected by the improvement. After the proper hearing, the board or city council, shall render its final decision confirming, modifying or revoking its ordinance, and shall send notice of its decision, to all interested parties who have given their addresses, and shall order the publication of such decision, together with a list of the parcels of land affected by the special levy, three times weekly, for two consecutive weeks, in the manner hereinabove specified. The decision of the municipal council shall become final, if, before, expiration of thirty days from the date of its last publication, no appeal is filed with the provincial board against the proposed improvement or against the special levy, signed by at least a majority of the landowners affected. The appellant or appellants shall immediately give the municipal council a written notice of the appeal. In the case of the province or city, the decision of the provincial board or city council is not appealable but shall become final after the expiration of thirty days from its last publication.

Section 52. Decision of the appeal. If an appeal is taken from the decision of the municipal council in the manner provided for in the next preceding Section, the said council shall forward to the provincial board an excerpt from the minutes of said council relative to the proposed improvement and all other documents in connection therewith, within ten days after receipt of the notice of appeal. The provincial board shall designate the place and set a date which shall be within thirty days following receipt of the board of the documents from the municipal council, for the hearing of the appeal, giving both parties notice thereof. During the hearing of the appeal, the municipal council shall be represented and heard, and the provincial board shall examine de novo all points involved in the protest filed, and its decision thereon shall be final.

Section 53. Fixing the amount of special levy. The special levy authorized under Section forty-seven hereof shall be apportioned, computed, and assessed according to the assessed valuation of such lands, as shown by the books of the assessor, or its current assessed value as fixed by said officer in the first instance if the property does not appear of record in his books. Upon the approval of the ordinance, the provincial or city assessor shall forthwith proceed to determine the annual amount of special tax assessed against each parcel of land compromised within the district especially benefited and shall send to each landowner a written notice thereof by ordinary mail. If upon completion of work it should appear that the cost thereof is smaller or greater than the estimated cost of the work, the provincial or city assessor shall without delay proceed to correct the assessment by increasing or decreasing, as the case may be, the special tax on each parcel of land affected, for the balance of the unpaid annual installments. If all annual installments have already been paid, the provincial or city treasurer shall fix the amount of credit to be allowed to, or the additional special tax to be levied upon the land, as the case may be. In all cases, he shall give notice of such rectifications to the parties interested.

Section 54. Payment of special levy. all sums due from any landowner or owners as payment of special levy shall be payable to the provincial or city treasurer or his deputy in the same manner as the annual ordinary tax levied upon real property, in accordance with the provisions of the preceding sections, shall be subject to the same penalties for delinquency and be enforced by the same means as said annual ordinary tax; and all said sums together with any of said penalties shall, from the dates on which they were assessed, constitute special liens upon the land concerned and shall have preference over other liens there may be on said lands with the sole exception of the lien for non-payment of the ordinary real property tax.

Section 55. Special levy by the National Government. The Secretary of Finance may, by Department Order issued for the purpose, provide for the imposition and collection of a special levy on lands especially benefited by public works projects financed by the National government corresponding to a part not exceeding sixty percent of the costs thereof as certified by the Secretary of Public Works, Transportation and Communications, the proceeds of which shall accrue to the general fund of the National Government. The special levy shall be apportioned, computed, and assessed according to the assessed valuation of such lands as shown by the books of the assessor, or its current assessed value as fixed by said officer if the property does not appear of record in this books. The tax shall be collected by the local treasurers who shall remit their collections to the National Treasurer in accordance with the rules and regulations issued by the Secretary of Finance for the purpose of implementing this Section.

The Special levy herein authorized may within sixty days from the date of publication of the Department Order in the Official Gazette be protested with the Secretary of Finance and if not reconsidered or rescinded may thereafter be appealed to the proper court for decision.

CHAPTER VI COLLECTION OF REAL PROPERTY TAX

Section 56. Date of accrual of tax. The real property tax for any year shall attach and become due and payable on the first day of January and from the same date said tax and all penalties subsequently accruing thereto shall constitute a lien upon the property subject to such tax. Said lien shall be superior to all other liens, mortgages, or encumbrances of any kind whatsoever, shall be enforceable against the property whether in the possession of the delinquent or any subsequent owner or possessor, and shall be removable only by the payment of the delinquent taxes and penalties.

The real property tax on properties actually, directly, and exclusively used for educational purposes as provided under Presidential Decree No. 261 shall begin to accrue on January 1, 1975.

Section 57. Collection of tax to be the responsibility of treasurers. The collection of the real property tax and all penalties accruing thereto, and the enforcement of the remedies provided for in this Code or any applicable laws, shall be the responsibility of the treasurer of the province, city or municipality where the property is situated.

Section 58. Assessor to furnish treasurer with assessment roll. The provincial or city assessor shall prepare and submit to the treasurer of the province, city or municipality, on or before the thirty-first day of December of each year, an assessment roll containing a list of all persons to whom real properties have been newly assessed or reassessed and the values of such taxable properties.

Section 59. Notice of time for collection of tax. The provincial or city treasurer shall, on or before the thirty-first of January each year, cause notice of the periods during which real property tax may be paid without penalty in their respective jurisdiction to be posted at the main entrance of the provincial building or city hall and of all municipal buildings and in a public conspicuous place in each barrio, and published in a newspaper and announced by crier at least three times.

The form and detail of the notice shall be prescribed by the Secretary of Finance: Provided, however, That in lieu of or in addition to such notice, the Secretary of Finance may require notification in any province, municipality, or city to be accomplished through the mailing of individual tax bills which shall estate the exact amount of the annual tax due, the amount of quarterly installment, its due date, the delinquency, and the applicable penalty.

Section 60. Payment of real property taxes in installments. Real property taxes may, in the discretion of the taxpayer, be paid without penalty in four equal installments; the first installment to be due and payable on or before March thirty-first; the second installment, on or before June thirty; the third installment, on or before September thirty; and the last installment, on or before December thirty-first, except the special levies authorized under Sections forty-seven and fifty-five of this Code which shall be governed by the local ordinance or Department Order issued by the Secretary of Finance, as the case may be.

Any person who is in any provincial, city or municipal treasurer's office on the last day of any period established for the payment of the real property tax without penalty, ready and prepared to pay but is unable to do so because of the great number of taxpayers, shall be given a suitable card entitling him to pay the tax without penalty on the next business day.

Section 61. Tax discount. If the basic and additional real property tax levied for the Special Education Fund or any quarterly installment thereof is paid in full within the prescribed period of payment, the taxpayer shall be granted a discount on the tax due as follows: twenty per cent on the tax due and payable during the year 1974; fifteen per cent on the tax due and payable during the year 1975; ten per cent on the tax due and payable during the year 1976; and five per cent on the tax due and payable during the year 1977; Provided, further, That only lands without any delinquency shall be granted the same; and Provided, finally, That the discounted tax shall not be lower than the tax corresponding to the next preceding tax year.

Beginning with the calendar year 1978 and thereafter, the President of the Philippines may, at his discretion or upon recommendation of the Secretary of Finance, authorize the grant of discounts on taxes due on real property at such rates and for such periods as he may fix, if he deems that the public interest so requires.

Section 62. Payment under protest. (a) When a taxpayer desires for any reason to pay his tax under protest, he shall indicate the amount or portion thereof he is contesting and such thereon the words "paid under protest". Verbal protests shall be confirmed in writing, with a statement of the ground, therefor, within thirty days. The tax may be paid under protest, and in such case it shall be the duty of the Provincial, City or Municipal Treasurers to annotate the ground or grounds therefor on the receipt.

(b) In case of payments made under protest, the amount or portion of the tax contested shall be held in trust by the treasurer and the difference shall be treated as revenue.

(c) In the event that the protest is finally decided in favor of the government, the amount or portion of the tax held in trust by the treasurer shall accrue to the revenue account, but if the protest shall be decided finally in favor of the protestant, the amount or portion of the tax protested against may either be refunded to the protestant or applied as tax credit to any other existing or future tax liability of the said protestant.

Section 63. Repayment of excessive collections. When it appears that an assessment of real property was erroneous and unjust when made and the same is reduced because of such error or injustice, and not by reason of damage incurred or deterioration suffered by such property subsequent to the date of original assessment, the taxpayer shall be entitled to the proper refund for taxes and penalties paid by him for not more than three years.

Timely notice shall be given by the Provincial or City Treasurer to every taxpayer whose assessment is so reduced and he shall be furnished a certificate showing the amount of refund to which he is entitled for payment already made.

Section 64. Restriction upon power of court to impeach tax. No court shall entertain any suit assailing the validity of tax assessed under this Code until the taxpayer shall have paid, under protest, the tax assessed against him nor shall any court declare any tax invalid by reason of irregularities or informalities in the proceedings of the officers charged with the assessment or collection of taxes, or of failure to perform their duties within this time herein specified for their performance unless such irregularities, informalities or failure shall have impaired the substantial rights of the taxpayer; nor shall any court declare any portion of the tax assessed under the provisions of Code invalid except upon condition that the taxpayer shall pay the just amount of the tax, as determined by the court in the pending proceeding.

Section 65. Notice of delinquency in the payment of the real property tax. Upon the real property tax or any installment thereof becoming delinquent, the provincial or city treasurer shall immediately cause notice of the fact to be posted at the main entrance of the provincial building and of all municipal buildings or municipal or city hall and in a public and conspicuous place in each barrio of the municipality of the province or city as the case may be. The notice of delinquency shall also be published once a week for three consecutive weeks, in a newspaper of general circulation in the province or city, if any there be, and announced by a crier at the marketplace for at least three market days.

Such notice shall specify the date upon which tax became delinquent, and shall state that personal property may be seized to effect payment. It shall also state that, at any time, before the seizure of personal property, payment may be made with penalty in accordance with the next following section, and further, that unless the tax and penalties be paid before the expiration of the year for which the tax is due, or the tax shall have been judicially set aside, the entire delinquent real property will be sold at public auction, and that thereafter the full title to the property will be and remain with the purchaser, subject only to the right of delinquent taxpayer or any other person in his behalf to redeem the sold property within one year from the date of sale.

Section 66. Penalty for delinquency. Failure to pay the real property tax before the expiration of the period for the payment without penalty of the quarterly installments thereof shall subject the taxpayer to the payment of a penalty of two per centum on the amount of the delinquent tax for each month of delinquency or fraction thereof, until the delinquent tax shall be fully paid: Provided, That in no case shall the total penalty exceed twenty-four per centum of the delinquent tax. The rate of penalty for tax delinquency fixed herein shall be uniformly applied in all provinces and cities.

Section 67. Remedies cumulative, simultaneous and unconditional. Collection of the real property tax may be enforced through any or all of the remedies provided under this Code, and the use or non-use of one remedy shall not be a bar against the institution of the others. Formal demand for the payment of the delinquent taxes and penalties due need not be made before any of such remedies may be resorted to; notice of delinquency as required in Section sixty-five hereof shall be sufficient for the purpose.

Section 68. Distraint of personal property for delinquency. After delinquency in the payment of such tax may be enforced by distraining the personal property including the crops growing on land of the delinquent taxpayer. In such case, the provincial or city treasurer or his deputy shall issue a duly authenticated certificate, based upon the records of his office, showing the fact of the delinquency and the amount of tax and penalty due, and this shall be sufficient warrant for the seizure of any non-exempt personal property belonging to the delinquent taxpayer in question. Such process may be executed by the provincial or city treasurer, his deputy, or any officer authorized to execute legal process.

Section 69. Personal property exempt from distraint or levy. The following property shall be exempt from distraint and the levy of attachment or execution for delinquency in the payment of the real property tax:

(a) Tools and the implements necessarily used by the delinquent taxpayer in his trade or employment.

(b) One horse, cow, carabao, or other beast of burden, such as the delinquent taxpayer may select, and necessarily used by him in his ordinary occupation.

(c) His necessary clothing, and that of all his family.

(d) Household furniture and utensils necessary for housekeeping, and used for that purpose by the delinquent taxpayers, such as he may select, of a value not exceeding three thousand pesos.

(e) Provisions, including crops, actually provided for individual or family use sufficient for four months.

(f) The professional libraries of lawyers, judges, clergymen, doctors, school teachers, and music teachers, not exceeding five thousand pesos in value.

(g) One fishing boat and net, not exceeding the total value of five thousand pesos, the property of any fisherman, by the lawful use of which he earn a livelihood.

(h) Any material or article forming part of a house or improvement of any real property.

Section 70. Sale of distrained personal property. Property seized upon process under Section sixty-eight hereof shall, after due advertisement, be exposed for sale at public auction to the bidder, and so much of the property shall be thus sold as may be necessary to satisfy the tax, penalty, and cost of the seizure and sale. The purchaser at such sale shall acquire an indefeasible title to the property.

Advertisement in such cases shall be given by notice stating the name of the owner of the property to be sold, date, time, place and cause of the sale, posted for twenty days before the date of the auction at the main entrance of the city or municipal hall, or municipal building, and at a public and conspicuous place in the barrio or street where the property was seized, and announced by crier at the marketplace at least three market days before the auction sale.

The sale shall take place, in the discretion of the provincial or city treasurer or his deputy, either at the main entrance of the municipal building or city or municipal hall or at the place where the property was seized. If no satisfactory bid or no bid at all is received in the place mentioned, the distrained property may be sold anywhere in the province or city at public auction, after the advertisement and due notice to the owner of the property.

Section 71. Redemption of distrained property The owner of personal property seized for non-payment of taxes may redeem the same property from the collecting officer at any time after seizure and before sale by tendering to him the amount of tax, penalty and costs incurred up to the time of tender. The costs to be charged in making such seizure and sale shall only embrace the actual expenses of seizure and preservation of the property pending the same, but no charges shall be imposed for the services of the collecting officer or his deputy.

Section 72. Return of officer and disposition of proceeds. The officer conducting a sale under Section seventy hereof shall make immediate return of his proceedings and a memorandum thereof shall be entered by the provincial or city treasurer in his records. The excess, if any, of the proceeds of the sale of the distrained personal property over the tax, penalty and costs of sale and seizure and any of the property remaining unsold in the hands of the officer, shall be returned to the taxpayer.

Section 73. Advertisement of sale of real property at public auction. After the expiration of the year for which the tax is due, the provincial or city treasurer shall advertise the sale at public auction of the entire delinquent real property, except real property mentioned in subsection (a) of Section forty hereof, to satisfy all the taxes and penalties due and the costs of sale. Such advertisement shall be made by posting a notice for three consecutive weeks at the main entrance of the provincial building and of all municipal buildings in the province, or at the main entrance of the city or municipal hall in the case of cities, and in a public and conspicuous place in barrio or district wherein the property is situated, in English, Spanish and the local dialect commonly used, and by announcement at least three market days at the market by crier, and, in the discretion of the provincial or city treasurer, by publication once a week for three consecutive weeks in a newspaper of general circulation published in the province or city.

The notice, publication, and announcement by crier shall state the amount of the taxes, penalties and costs of sale; the date, hour, and place of sale, the name of the taxpayer against whom the tax was assessed; and the kind or nature of property and, if land, its approximate areas, lot number, and location stating the street and block number, district or barrio, municipality and the province or city where the property to be sold is situated. Copy of the notice shall forthwith be sent either by registered mail or by messenger, or through the barrio captain, to the delinquent taxpayer, at his address as shown in the tax rolls or property tax record cards of the municipality or city where the property is located, or at his residence, if known to said treasurer or barrio captain: Provided, however, That a return of the proof of service under oath shall be filed by the person making the service with the provincial or city treasurer concerned.

Section 74. Stay of sale of real property. At any time during or before the sale the taxpayers may stay all proceedings by paying the taxes and penalties due on the real property up to the time of tender and costs to the provincial or city treasurer or his deputy conducting the sale.

Section 75. Discretion of provincial or city treasure to buy real property in behalf of province or city. In case there is no bidder at the public auction of the delinquent real property, or if the highest bid is for an amount not sufficient to pay the taxes, penalties or costs of sale, the provincial or city treasurer may, in his discretion, buy the delinquent real property in the name of the province or the city for the amount of taxes, penalties due thereon, and the costs of sale.

Section 76. Certificate of sale to be issued purchaser, province or city. The purchaser at public auction of delinquent property shall receive from the provincial or city treasurer, or his deputy, a certificate setting forth the proceedings had at the sale, a description of the property sold, the name of the purchaser, the sale price, as well as the exact amount of the taxes and penalties due and the costs of sale. The person in whose name the property is listed and assessed shall be furnished with a copy of the sale certificate.

Section 77. Report of sale to provincial or municipal board or city council. The provincial or city treasurer on his deputy shall make a report to the provincial or municipal board or city council of the sale within thirty days thereafter, and shall make the same appear in his records.

Section 78. Redemption of real property after sale. Within the term of one year from the date of the registration of sale of the property, the delinquent taxpayer or his representative, or in his absence, any person holding a lien or claim over the property, shall have the right to redeem the same by paying the provincial or city treasurer or his deputy the total amount of taxes and penalties due up to the date of redemption, the costs of sale and the interest at the rate of twenty per centum on the purchase price, and such payment shall invalidate the sale certificate issued to the purchaser and shall entitle the person making the same to a certificate from the provincial or city treasurer or his deputy, stating that he had redeemed the property.

The provincial or city treasurer or his deputy shall, upon surrender by the purchaser of the certificate of sale previously issued to him, forthwith return to the latter the entire purchase price paid by him plus the interest at twenty per centum per annum herein provided for, the portion of the cost of the sale and other legitimate expenses incurred by him, and said property shall thereafter be free from the lien of said taxes and penalties.

Section 79. Possession and usufruct of real property within one year from due date of sale. After the sale and before redemption, or before the expiration of the term of one year fixed in Section seventy-eight hereof for such redemption, the real property shall remain in the possession of the delinquent taxpayer, who shall have the right to the usufruct thereof.

Section 80. Issuance of final bill of sale. In case the delinquent taxpayer or his representative, or any person holding a lien or claim over the property, fails to redeem the same within the period of one year from the date of sale as provided in Section seventy-eight hereof, the provincial or city treasurer shall make an instrument sufficient in form and effect to convey to the purchaser the property purchased by him, free from any encumbrance or third party claim whatsoever, and the said instrument shall succinctly set forth all proceedings upon which the validity of the sale depends. Any balance of the proceeds of the sale left after deducting the amount of the taxes and penalties due and the costs of sale, shall be returned to the owner or his representative.

Section 81. Disposition of real property acquired by province or city. The provincial or city treasurer shall have charge of the delinquent real property acquired by the province or city under the provisions of Section seventy-five during which time the delinquent taxpayer shall have possession and usufruct of such property in accordance with Section seventy-nine hereof. Said treasurer shall take steps within one year from the date of issuance of final bill of sale to dispose of the delinquent real property at public auction; but at any time before the auction sale, any person in his own right may repurchase such property by paying the total amount of the taxes and penalties due up to the time of repurchase, the costs of sale, and other legitimate expenses incurred by the province or city with respect to the property, and an additional penalty of twenty per cent on the purchase price: Provided, however, That the right of the delinquent taxpayer or his representative or any person holding lien or claim over the property to further redeem said property within one year from the date of acquisition by the province or city, in the manner provided in Section seventy- eight hereof; and, Provided, further That if the treasurer has entered into a contract for the lease of the property in the meantime, any repurchase made hereunder shall be subject to such contract.

Section 82. Collection of real property tax through the courts. The delinquent real property tax shall constitute a lawful indebtedness of the taxpayer to the province or city and collection of the tax may be enforced by civil action in any court of competent jurisdiction. The civil action shall be filed by the Provincial or City fiscal within fifteen days after receipt of the statement of delinquency certified to by the provincial or city treasurer. This remedy shall be in addition to all other remedies provided by law.

Section 83. Suits assailing validity of tax sale. No court shall entertain any suit assailing the validity of a tax sale of real estate under this Chapter until the taxpayer shall have paid into court the amount for which the real property was sold, together with interests of twenty per centum per annum upon that sum from the date of sale to the time of instituting suit. The money so paid into court shall belong to the purchaser at the tax sale if the deed is declared invalid, but shall be returned to the depositor if the action fails.

Neither shall any court declare a sale invalid by reason of irregularities or informalities in the proceedings committed by the officer charged with the duty of making sale, or by reason of failure by him to perform his duties within the time herein specified for their performance, unless it shall have been proven that such irregularities, informalities or failure have impaired the substantial rights of the taxpayer.

Section 84. Payment of delinquent taxes on property subject of controversy. In any suit involving the ownership or possession of, or succession to, real property, the court shall, on its own motion or upon representation of the provincial, city or municipal treasurer or his deputy, condition the award of such ownership, possession or succession to any party to the controversy upon the payment to the court of the taxes and penalties due on the property and all the costs that may have accrued to the treasurer by reason of his representation.

Section 85. Treasurer to certify delinquencies Remaining uncollected The provincial, city or municipal treasurer shall prepare a certified list of all real property tax delinquencies remaining uncollected or unsatisfied for at least one year in his jurisdiction, and a statement of the reason or reasons for such non-collection or non-satisfaction, and shall submit the same to the Secretary of Finance on or before December thirty-first of the year immediately succeeding that in which the delinquencies have occurred with a request for assistance in the enforcement of the remedies for collection provided hereunder.

CHAPTER VII DISPOSITION OF PROCEEDS

Section 86. Distribution of proceeds. (a) The proceeds of the real property tax, except as otherwise provided in this Code, shall accrue to the province, city or municipality where the property subject to the tax is situated and shall be applied by the respective local government unit for its own use and benefit.

(b) Barangay shares in real property tax collections. Beginning January 1, 1978 and thereafter, the annual shares of the barangays in the basic real property tax collections shall be as follows:

(1) Ten per cent of the total annual collections of the province and the municipality shall accrue to the barangay where the property subject to the tax is located.

(Amending Section 86, Paragraph (b) of Presidential Decree Numbered Four Hundred Sixty Four, Otherwise Known as the Real Property Tax Code, Presidential Decree No. 1230, [November 4, 1977])

(2) In the case of the city, ten per cent of the collections of the tax shall likewise accrue to the barrio where the property is situated.

Thirty per cent of the barrio shares herein referred to may be spent for salaries or per diems of the barrio officials and other administrative expenses, while the remaining seventy per cent shall be utilized for development projects approved by the Secretary of Local Government and Community Development or by such committee created, or representatives designated, by him.

Section 87. Application of proceeds. (a) The proceeds of the real property tax pertaining to the city and to the municipality shall accrue entirely to their respective general funds. In the case of the province, one-fourth thereof shall accrue to its road and bridge fund and the remaining three-fourths, to its general fund.

(b) The entire proceeds of the additional one per cent real property tax levied for the Special Education Fund created under Republic Act No. 5447 collected in the province or city on real property situated in their respective territorial jurisdictions shall be distributed as follows:

(1) Collections in the provinces: Fifty-five per cent shall accrue to the municipality where the property subject to the tax is situated; twenty-five per cent shall accrue to the province; and twenty per cent shall be remitted to the Treasurer of the Philippines.

(2) Collections in the cities and in the cities and municipalities of Metro Manila: Eighty percent shall be retained by cities; including cities and municipalities of Metro Manila, and twenty per cent shall be remitted to the Treasurer of the Philippines.

(Amending Sections 41 and 87 of P.D. No. 464 As Amended (Real Property Tax Code), Presidential Decree No. 1913, [March 29, 1984])

However, any increase in the shares of provinces, cities and municipalities from said additional tax accruing to their respective local school boards commencing with fiscal year 1973-74 over what has been actually realized during the fiscal year 1971-72 which, for purposes of this Code, shall remain as the base year, shall be divided equally between the general fund and the special education fund of the local government units concerned. The Secretary of Finance may, however, at his discretion, increase to not more than seventy-five per cent the amount that shall accrue annually to the local general fund.

(c) The proceeds of all delinquent taxes and penalties, as well as the income realized from the use, lease or other disposition of the real property acquired by the province or city at a public auction in accordance with the provisions of this Code, and the proceeds of the sale of the delinquent real property or of the redemption thereof, shall accrue to the province, city or municipality in the same manner and proportions as if the tax or taxes had been paid in regular course.

(d) The proceeds of the additional real property tax on idle private lands shall accrue to the respective general funds of the province, city and municipality where the land subject to the tax is situated.

(e) The provisions of existing laws to the contrary notwithstanding the proceeds of the Special Education Fund accruing to the local governments may be used for the salary adjustment of teachers of the national government, in addition to the other purposes mentioned in Section 1 of Republic Act No. 5447, as amended. (Amending Sections 41 and 87 of P.D. No. 464 As Amended (Real Property Tax Code), Presidential Decree No. 1913, [March 29, 1984])

CHAPTER VIII ORGANIZATION, FUNCTIONS AND SUPERVISION

Section 88. Provincial or city assessor, his assistant and deputies and their appointments. There shall be a distinct and separate assessment office in every province or city under the charge of a provincial or city assessor, who shall be appointed by the President of the Philippines in the manner prescribed by law. The position of provincial or city assessor shall belong to the competitive service and its salary shall be as fixed by law.

There shall be an Assistant Provincial or City Assessor in each assessment office, who shall be appointed by the provincial or city assessor in conformity with the provisions of the Civil Service Law, subject to the approval of the Secretary of Finance. The salaries of the Assistant Provincial or City Assessor shall likewise be as fixed by law.

Upon the approval of this Code, no person shall be appointed to the position of provincial or city assessor or assistant provincial or city assessor, unless he possesses a degree in law, civil, mechanical, industrial, agricultural or geodetic engineering, architecture; forestry; agriculture; commerce or business administration; or a bachelor's degree in education, arts and sciences, major in mathematics or statistics; or any related courses; has qualified in an appropriate Civil Service Examination and has acquired at least five years experience in real property assessment work, or at least three years in the case of assistant provincial or city assessor. For every year lacking in educational attainment, a two-year experience in real property assessment work in addition to the foregoing experience requirement may be substituted, Provided, However, That he shall have completed at least two years of any of the college courses aforementioned. (as amended by PD 1383)

Upon the effectivity of this Code, vacant positions of provincial and city assessors and of assistant provincial and city assessors shall be filled in accordance with the provisions of this Section.

The other employees in the assessment office, whose number and salaries shall be fixed by the Sangguniang Panlalawigan or Panlungsod shall be appointed by the Provincial Governor or City Mayor upon recommendation of the provincial or city assessor, in conformity with the provisions of this Section and the Civil Service Law: Provided, That there shall be in each provincial or city assessment office one Chief Deputy Assessor and at least three deputy assessors to perform full-time field assessment work. Any person with at least two years college education in any of the courses required for provincial or city assessor and who possesses an appropriate Civil Service eligibility shall be deemed qualified for appointment as Chief Deputy Assessor if he has at least three years' experience, both in real property assessment work. The Chief Deputy Assessor shall be appointed by the Provincial Governor or City Mayor upon recommendation of the Provincial or City Assessor, as the case may be, in conformity with the provisions of this Section and the Civil Service Law, subject to the approval of the Secretary of Finance. (as amended by PD 1383)

The oath of office of provincial or city assessors and assistant provincial or city assessors shall contain a statement to the effect that the affiant shall appraise real property subject to assessment at its current market value in accordance with this Code.

Section 89. Powers and duties of provincial or city assessor. The provincial or city assessor shall:

(a) Establish a systematic method of assessment in the manner prescribed herein and in accordance with rules and regulations issued by the Secretary of Finance.

(b) Install and maintain a real property identification and accounting system conforming to the standards prescribed by the Secretary of Finance.

(c) Prepare, install and maintain a system of tax mapping showing graphically all property subject to assessment in his province or city and gather all necessary data concerning the same.

(d) Make frequent physical surveys to check and determine whether all real property within the locality are properly listed in the assessment rolls.

(e) Appraise all items of real property at current market value in accordance with this Code and conduct regular ocular inspection trips to determine if all properties are assessed correctly.

(f) Keep a record of all transfers, leases and mortgages of real property, rentals, insurance, and cost of construction of buildings and other improvements on land, and land income for assessment purposes.

(g) Apply uniformly the assessment levels fixed in Section twenty hereof to the current market value of all property subject to assessment.

(h) Cancel all of the assessments, in case several assessments are made for the same property, except the one property make, but if any assessee or his representative shall object to the cancellation of the assessment made in his name, such assessment shall not be cancelled but the fact shall be noted on the tax declaration and assessment rolls and other property books of record. Preference, however, shall be given to the assessment of the person who has the best title to the property, or in default thereof, of the person who has possession of the property.

(i) Eliminate from the assessment of taxable property such properties which have been destroyed or which, being exempt, have been improperly included in the same; decrease the assessment where the property previously assessed has suffered a permanent loss of value by reason of storm, flood, fire, or other calamity; and increase the assessment where improvement have been made upon the property subsequent to the last assessment.

(j) Attend personally or thru his duly authorized representative all sessions of the Local Board of Assessment Appeals and present any information or record in his possession as may be required by the Board in determining the correct assessment of the real property under appeal.

(k) Issue certificates pertaining to or certified copies of the assessment records of real property and all other records relative to its assessment, upon payment of a service charge or fee fixed therefor by the local board or council.

(l) Perform such other acts as may be required of provincial or city assessor under this Code or other related laws.

Section 90. The Municipal Deputy Assessor. There is hereby created in every municipality the position of municipal deputy assessor, who shall be appointed by the provincial assessor with the approval of the Secretary of Finance. The salary of the municipal deputy assessor shall be equal to the basic salary authorized by law for the municipal treasurer of the same municipality, one-third of the annual rate to be paid from the provincial general fund and two-thirds, from the municipal general fund. Within one year from the date of approval of this Code, the position of Municipal Deputy Assessor shall be created and provided for in the corresponding provincial and municipal budgets and filed in accordance with the provisions of this Section.

Any person with a bachelor's degree in law, civil or mechanical engineering, commerce or business administration, or any other related collegiate course and who possesses an appropriate civil service eligibility shall be deemed qualified for appointment as municipal deputy assessor. A two-year experience in assessment work may be substituted for every year lacking in the educational requirement: Provided, however, That the appointee shall have completed at least two years of any of the college courses abovementioned.

The Municipal Deputy Assessor shall perform all the duties and functions related to the appraisal and assessment for taxation purposes of real property situated within the municipality under the direct and immediate supervision of the provincial assessor.

In the municipalities belonging to the fourth class category or lower, the municipal treasurer may be appointed ex-officio deputy assessor by the provincial assessor upon recommendation of the provincial treasurer: Provided, however, That such municipal treasurer possesses the minimum qualification requirements prescribed herein; Provided, further, That no ex-officio appointment shall extend beyond twelve months from the date of issue unless renewed by the appointing authority; and Provided, finally, That the appointment of a regular municipal treasurer as ex-officio deputy assessor shall cease and be considered terminated upon the appointment of a regular municipal deputy assessor as herein provided.

A municipal treasurer appointed as ex-officio deputy assessor shall receive additional compensation equivalent to not more than twenty percent of his basic salary payable by the municipality. In no case however shall his basic salary plus such additional compensation exceed the basic salary authorized for a municipal treasurer of the next higher class of municipality.

Municipal treasurers who at the time of approval of this Code are already appointed as ex-officio deputy assessors shall continue in such capacity until the appointment of a regular municipal deputy assessor in accordance with this Code.

Section 90-A.

(a) The position title of Municipal Deputy Assessor is hereby changed to Deputy Provincial and Municipal Assessor.

Municipal Deputy Assessors, who, at the time of the approval of this Decree, are holding permanent appointments shall continue in such capacity without the necessity of issuance of new appointments: Provided, However, That they shall henceforth be known as Deputy Provincial and Municipal Assessors.

(b) Beginning January 1, 1979, the position of Deputy Provincial and Municipal Assessor shall be created in all municipalities.

No new appointment for Ex-Officio Deputy Assessor shall be issued beginning January 1, 1979, Provided, However, That those holding appointments as such as Ex-Office Deputy Assessor at the time of the approval of this Decree may continue in Office as such until the appointment of a regular Deputy Provincial and Municipal Assessor, or upon expiration of the twelve-month period covered by his present appointments, whichever comes earlier.

(c) Any person with a bachelor's degree in law, civil, mechanical, industrial, agricultural or geodetic engineering; architecture; forestry; agriculture; commerce or business administration, or a bachelor's degree in education, arts and sciences, major in mathematics or statistics; or any other related college course; has qualified in an appropriate civil service examination and has acquired at least two years experience in real property assessment work, shall be deemed qualified for appointment as Deputy Provincial and Municipal Assessor. A two-year experience in real property assessment work may be substituted for every year lacking in the abovementioned educational requirement; Provided, However, That the appointee shall have completed at least two years of any of the college courses abovementioned.

(d) A municipality may create the position of Assistant Municipal Assessor, whose salary shall be equal to the rate authorized for the Assistant Municipal Treasurer of the same municipality, payable from the municipal funds. The Assistant Municipal Assessor upon recommendation of the Deputy Provincial and Municipal Assessor shall be appointed by the Provincial Assessor upon recommendation of the Deputy Provincial and Municipal Assessor, subject to the approval of the Secretary of Finance. In the municipalities of Metropolitan Manila, the Assistant Municipal Assessor shall be appointed by the Commissioner for Finance of the Metropolitan Manila Commission upon recommendation of the Municipal Assessor and with the approval of the Secretary of Finance. The educational requirements prescribed for the position of Deputy Provincial and Municipal Assessor shall likewise apply to the Assistant Municipal Assessor, provided, however, that he possesses an appropriate civil service eligibility and at least one year experience in real property assessment work. For every year lacking in the aforementioned educational requirements, a two-year experience in real property assessment work may be substituted; Provided, That the appointee shall have completed at least two years of any of the college courses aforementioned. (as created by PD 1383)

Section 91. Supervision over local assessment offices. The Secretary of Finance shall exercise direct executive supervision over local assessment affairs and the assessment offices of provincial, city and municipal governments and, for this purpose, there is hereby created a division in the Department of Finance which shall discharge all powers, duties and functions that may be deemed necessary in, or are pertinent to, the administration of the real property tax and the implementation of the provisions of this Code.

The head of this division shall in no case receive compensation and/or emoluments lower than those authorized for the regular division chiefs of the Department. Sufficient funds for the operation and maintenance of said division shall be included in the annual appropriations of the Department.

CHAPTER IX SPECIAL PROVISIONS

Section 92. Basis for payment of just compensation in expropriation proceedings. In determining just compensation when private property is acquired by the government for public use, the basis shall be the market value declared by the owner or administrator or anyone having legal interest in the property, or such market value as determined by the assessor, whichever is lower.

Section 93. Educational institutions exempt from the real property tax. Non-stock or non-profit educational institutions owning real property, the total assessed value of which does not exceed thirty thousand pesos, as well as Education Foundations organized under Republic Act No. 6055, shall be exempt from the payment of realty taxes provided for under this Code.

Section 94. Assessment loan revolving fund. The sum of fifty million pesos is hereby appropriated out of the unallocated balance of internal revenue allotments to local governments, after distribution of their individual shares pursuant to Section One of Presidential Decree No. 144, as amended, to constitute an Assessment Loan Revolving Fund for financing tax-mapping projects, periodic revisions of assessments, and other real property assessment programs of provinces, cities, and municipalities. Such fund shall be administered by the Secretary of Finance and shall be loaned without interest to provinces, cities, and municipalities under such terms and conditions as he may impose. (Amending Section 94 of P.D. No. 464 (Real Property Tax Code), Presidential Decree No. 1002, [September 22, 1976])

Section 95. General assessment revision, expenses incident thereto. Provincial, city and municipal boards or councils shall provide the necessary appropriations to underwrite or defray expenses incident to general revision of real property assessments, using for the purpose any unappropriated balances in the general, road and bridge and/or permanent public improvement funds, or any underestimated revenues accruing thereto, or reversions of authorized appropriations in their respective budgets which are not otherwise urgently needed, any provision of existing laws to the contrary notwithstanding.

All expenses incident to a general revision of property assessments shall be divided equally between the province and the municipality.

CHAPTER X MISCELLANEOUS PROVISIONS

Section 96. Remission of tax by provincial or city board or council. In case of a general failure of crops or great decrease in the price of products, or similar widespread disaster in any city or municipality or municipalities of a province, the provincial of city board or council of the same, by resolution passed prior to the first day of January of any year may remit, wholly or partially, the real property tax or the penalties thereon for the succeeding year in the city or municipality or municipalities effected by the disaster, but a resolution so disposing must clearly state the reason or reasons for such remission and shall not take effect until approved by the Secretary of Finance.

Section 97. Remission or reduction of tax by the President of the Philippines. The President of the Philippines, may, in his discretion, remit or reduce the real property tax for any year in my city, municipality or province if he deems that public interest so requires.

Section 97-A. Grant of Special Authority to the Minister of Finance. — Whenever public interest shall so require, or in special cases of economic dislocation or imbalance arising from natural calamities, the Minister of Finance shall, upon direction or approval of the President of the Philippines, formulate and prescribe a scheme of graduated realty tax payments and/or a system of equalizing real property valuations for taxation purposes, or such remedial measures that would ease the tax burden, subject to such conditions and requirements as may be deemed necessary. (Amendments to Certain Sections of P.D. No. 464 As Amended (Real Property Tax Code), Presidential Decree No. 1621, [April 19, 1979])

Section 98. Duty of offers to assist the provincial or city assessor. It shall be the duty of every officer and employee of the provincial, city and municipal governments to render all necessary assistance to the provincial or city assessor. It shall likewise be the duty of registers of deeds and notaries public to furnish the provincial or city assessors with copies of all contracts conveying, leasing, or mortgaging real property received by, or acknowledged before, them.

Section 99. Insurance companies to furnish information. Insurance companies, whenever requested, shall furnish in each particular case to the provincial or city assessor copies of any contract or policy insurance on buildings, structures and improvements insured by them which may be necessary for the proper assessment thereof.

Section 100. Fees in court actions. All court actions, criminal or civil, instituted at the instance of the provincial or city treasurer or assessor under the provisions of this Code, shall be exempt from the payment of court and sheriff's fees.

Section 101. Fees in registration of papers or documents on sale of delinquent real property to province or city. All certificates, documents, or papers covering the sale of delinquent property to the province or city, if registered in the Registry of Property, shall be exempt from registration fees.

Section 102. Promulgation of rules by the Secretary of Finance. The Secretary of Finance shall promulgate the rules and regulations and prescribe the forms to be used and the procedures to be followed in carrying out properly and effectively the provisions of this Code.

Section 103. Real property assessment notices or owner's copies of the tax declarations to be exempt from postal charges or fees. All real property assessment notices or owner's copies of tax declarations sent thru the mails by the assessor shall be exempt from the payment of postal charges or fees.

CHAPTER XI PENAL PROVISIONS

Section 104. Failure to file Declaration and Other Prohibited Acts. Any person required under the provisions of this Code to declare real property whether taxable or exempt, who fails to file such declaration under the terms and conditions prescribed therefor, shall upon conviction be punished by a fine of not more than one thousand pesos or by imprisonment of not more than one year, or both, at the discretion of the Court; Provided, However, That if a violator shall voluntarily agree to pay a fine without necessity of filing a case in court, the Provincial, City or Municipal Assessor shall recommend the collection of a fine by the Provincial, City, or Municipal Treasurer in accordance with the rates to be fixed by the Secretary of Finance on the basis of the assessed value of subject property. The funds herein collected shall be appropriated for the operation of the Office of the Provincial, City or Municipal Assessor, as the case may be. (as amended by PD 1383)

Section 105. Acts committed in behalf of corporations. An individual who shall commit any of the violations penalized in the preceding section acting under the authority and in behalf of a corporation, partnership or association shall be punished by the fine and/or imprisonment therein provided, and the other liabilities and shall attach to the corporation, partnership or association to whom the real property is required to be listed for purposes of taxation or exemption. The corporation, partnership or association, shall in addition, pay a fine of not less than two thousand pesos nor more than five thousand pesos at the discretion of the court.

Section 106. Omission of property from assessment or tax rolls by officers and other acts. Any officer charged with the duty of assessing real property, who shall willfully fail to assess, or shall intentionally omit from the assessment or tax roll, any real property which he knows to be lawfully taxable or shall wilfully or through gross negligence under assess any real property or shall intentionally violate or fail to perform any duty imposed upon him by law relating to the assessment of taxable and real property, shall upon conviction be punished by a fine or not more than one thousand pesos or my imprisonment of not more than one year, or both, at the discretion of the court.

The same penalty shall be imposed upon any officer charged with the duty of collecting the tax due on real property who shall willfully fail to collect the tax and institute the necessary proceedings for the collection of the same.

Any other officer required by this code to perform acts relating to the administration of the real property tax, or to assist the assessor or treasurer in such administration, who shall willfully fail to discharge such duties, shall upon conviction, be punished by a fine or not exceeding five hundred pesos or by imprisonment of not more than six months, or both, at the discretion of the court.

Section 107. Government agents delaying assessment of real property and assessment appeals. Any government official who shall intentionally and deliberately delay the assessment of real property, or the filing of any appeal against its assessment, if such is patently indicated, shall, upon conviction, be punished by a fine of not more than five hundred pesos or by imprisonment of not more than one year, or both, at the discretion of the court.

Section 108. Violation of other provisions of this Code or of rules and regulations in general. Any person who shall violate any provision of this Code or any rule or regulations of the Department of Finance made in conformity thereto, for which violation no specific penalty is provided by law, shall be punished by a fine of not more than three hundred pesos, or by imprisonment of not more than six months, or both, at the discretion of the court. In the case of a corporation, partnership, or association, the penalty shall be fine of not less than two thousand pesos nor more than five thousand pesos at the discretion of the court.

CHAPTER XII TRANSITORY PROVISIONS

Section 109. Sale and forfeiture before effectivity of Code. All sales and forfeitures of delinquent real properties and tax delinquencies existing before the effective date of this Code shall be governed by the provisions of laws then in force.

Section 110. Turn over of pending assessment cases, records, supplies and equipment of the Board of Assessment Appeals. All assessment cases pending before the Board of Assessment Appeals created under Commonwealth Act No. 470 and the charters of all cities including all their records, supplies and equipment shall be turned over by its outgoing Chairman to the local Board of Assessment Appeals in their respective localities created under Presidential Decree No. 76. Such cases shall be decided pursuant to and in accordance with the provisions of this Code.

Section 111. Repealing Clause. Commonwealth Act Numbered Four Hundred Seventy, as amended; the pertinent provisions of the charters of all cities; Section two thousand ninety-two of the Revised Administrative Code; and all acts, laws or decrees or parts of acts, laws or decrees inconsistent with the provisions of this Code are hereby repealed or modified accordingly.

Section 112. Effectivity of Code. This Code shall take effect on June 1, 1974.

Done in the City of Manila, this 20th day of May, in the year of Our Lord Nineteen Hundred and Seventy-four.