Mediation Fees and Mediator's Fees for the Implementation of Mediation in the Court of Tax Appeals

February 13, 2018 CTA EN BANC RESOLUTION NO. 001-18 RE : Mediation Fees and Mediator's Fees for the Implementation of Mediation in the Court of Tax Appeals WHEREAS , the Supreme Court En Banc issued A.M. No. 11-1-5-SC-PHILJA (Re: Interim Guidelines for Implementing Mediation in the Court of Tax Appeals); HTcADC WHEREAS , at present, the Clerk of Court En Banc of the Court of Tax Appeals (CTA) collects a Mediation Fee of One Thousand Pesos (Php1,000.00) for every case appealed from the decision of a CTA Division to the CTA En Banc. 1 WHEREAS , in view of the impending implementation of A.M. No. 11-1-5-SC-PHILJA, there is a need to revisit the amount of Mediation Fees being collected by the CTA for purposes of fixing a reasonable amount of Mediator's Fee and sustaining the costs of maintaining the system and, at the same time, ensuring that mediation remains to be a fast and cost-effective method of resolving disputes. NOW, THEREFORE , pursuant to its authority under Section 8 of Republic Act No. 1125, as amended, this Court, sitting En Banc , RESOLVES to adopt the following: 1. Upon the filing of a petition for review, a Basic Mediation Fee 2 in the amount of Two Thousand Five Hundred Pesos (Php2,500.00) shall be collected by the Clerk of Court En Banc or in Division, as the case may be; 2. Upon referral to mediation by the Court 3 and the parties' submission to the Clerk of Court En Banc or in Division, as the case may be, of the Agreement to Mediate, 4 an Additional Mediation Fee in the following amounts shall be collected from each party 5 by the Clerk of Court En Banc or in Division, as the case may be: Sum in Dispute Additional Mediation Fee 10 Million and below Php5,000.00 Above 10M to 50M Php10,000.00 Above 50M to 100M Php30,000.00 Above 100M Php50,000.00 The Sum in Dispute is understood to mean: a) the amount claimed in cases involving claims for refund or issuance of tax credit certificate; b) the basic deficiency tax in internal revenue tax assessment cases, or the surcharge, interest and penalties, if no basic deficiency tax is being assessed; and CAIHTE c) the amount of fines and surcharges in customs cases. The foregoing sums shall be collected, deposited and reported in accordance with Section 9, Rule 141 of the Rules of Court, as revised by A.M. No. 04-2-04-SC effective August 16, 2004, and CTA Administrative Circular No. 01-08-05 (Guidelines for the Collection, Utilization and Disbursement of the Mediation Fund) issued on August 5, 2005. 3. Mediators shall be remunerated in accordance with the following: a. Basic Mediator's Fee The mediator, regardless of the outcome of the mediation, shall be entitled to Two Thousand Five Hundred Pesos (Php2,500.00), as basic mediator's fee. b. Additional Mediator's Fee Upon the Court's approval of the signed compromise agreement, the mediator shall be entitled to additional remuneration in the following amounts: Sum in Dispute Additional Mediator's Fee 10 Million and below Php5,000.00 Above 10M to 50M Php10,000.00 Above 50M to 100M Php30,000.00 Above 100M Php50,000.00 Provided , that should the mediation fail, the mediator shall receive only 50% of the appropriate additional mediator's fee. 4. Expenses and Costs The parties shall bear their own costs and expenses, such as meals, transportation and communication expenses, photocopying and other miscellaneous expenses, unless otherwise agreed upon by the parties. 5. Nothing in the foregoing shall be construed as amending or modifying the provisions of Section 22, Rule 141 of the Rules of Court which remains valid and effective. This Resolution shall take effect upon its approval by the Supreme Court. (SGD.) ROMAN G. DEL ROSARIO Presiding Justice (SGD.) JUANITO C. CASTAEDA, JR. Associate Justice (SGD.) LOVELL R. BAUTISTA Associate Justice (SGD.) ERLINDA P. UY Associate Justice (SGD.) CAESAR A. CASANOVA Associate Justice (SGD.) ESPERANZA R. FABON-VICTORINO Associate Justice (SGD.) CIELITO N. MINDARO-GRULLA Associate Justice (SGD.) MA. BELEN M. RINGPIS-LIBAN Associate Justice (SGD.) CATHERINE T. MANAHAN Associate Justice Footnotes 1. Section 9 (B), Rule 141 of the Rules of Court, as revised by A.M. No. 04-2-04-SC effective August 16, 2004; CTA Administrative Circular No. 01-08-05 (Guidelines for the Collection, Utilization and Disbursement of Mediation Fund) issued on August 5, 2005. 2. In lieu of the Mediation Fee of One Thousand Pesos (Php1,000.00) as provided under Section 9 (B), Rule 141 of the Rules of Court, as revised by A.M. No. 04-2-04-SC. 3. A Resolution (Form No. 1) shall be issued by the Court En Banc or in Division referring the covered civil case to mediation and requiring the parties to appear before the Philippine Mediation Center-Court of Tax Appeals (PMC-CTA) at a specified date and time (Section II, A.M. No. 11-1-5-SC-PHILJA). 4. Should the parties agree to mediate during their initial appearance before the PMC-CTA, they shall execute an Agreement to Mediate (Form No. 2) (Section III, A.M. No. 11-1-5-SC-PHILJA). 5. Subject to Sec. 22, Rule 141 of the Rules of Court which reads as follows: "SEC. 22. Government exempt . The Republic of the Philippines, its agencies and instrumentalities are exempt from paying the legal fees provided in the Rule. Local Governments and government-owned or -controlled corporations with or without independent charters are not exempt from paying such fees."