HOUSE BILL NO. 10621 "An Act Elevating the Rank of the Court of Tax Appeals (CTA) to the Level of a Collegiate Court with Special Jurisdiction, Enlarging its Organizational Structure, Expanding its Jurisdiction, Amending for the Purpose certain Sections of Republic Act 1125, as amended. Otherwise Known as the Law Creating the Court of Tax Appeals, and For other Purposes."

December 20, 2000 BIR RULING [DA-436-00] MEMORANDUM FOR : Hon. Jimmie C. Policarpio Presidential Legislative Adviser and Head, PLLO FROM : Lilian B. Hefti Deputy Commissioner Legal & Inspection Group SUBJECT : HOUSE BILL NO. 10621 "An Act Elevating the Rank of the Court of Tax Appeals (CTA) to the Level of a Collegiate Court with Special Jurisdiction, Enlarging its Organizational Structure, Expanding its Jurisdiction, Amending for the Purpose Certain Sections of Republic Act 1125, as Amended. Otherwise Known as the Law Creating the Court of Tax Appeals, and for Other Purposes." COMMENTS: The Court of Tax Appeals is not a mere superior administrative agency or tribunal but is a part of the judicial system of the Philippines. Thus, Congress has the power to create new courts and to apportion jurisdiction among various courts. However, in the exercise of this power, Congress may not impair the independence of the judiciary. For this purpose, Section 5, Article VIII, 1987 Philippine Constitution has given the Supreme Court certain powers which Congress may not take away. Inasmuch as the proposed bill which seeks to amend the above-cited section of the Constitution. i.e., by elevating the rank of the Court of Tax Appeals to the level of a Collegiate Court with Special Jurisdiction, is in effect an impairment of the said independence of the judiciary, it is suggested that the proposed bill should be referred to the Supreme Court which has jurisdiction over the matter. Very truly yours, (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group