(b) Power of the CTA to Suspend Collection of Taxes

Motion to Suspend Collection of Tax During Protest

While the TP is appealing the decision denying the protest to the CTA, and the BIR issues a Warrant of Distraint and Levy to enforce collection, the Taxpayer may file a “Motion to Suspend Collection of Tax” on the ground that the collection of the tax will jeopardize the interest of the TP (RA 1125, Sec. 11, as amended by RA 9282, Sec. 9¹). The CTA may suspend collection and require the taxpayer either to deposit the amount claimed or to file a surety bond for not more than double that amount.

Suspension of Collection of Taxes

General Rule: No injunction to restrain collection of taxes

Exception: Under Section 9 of RA 9282, amending Section 11 of RA 1125 ², suspension is allowed when the following conditions concur:

• It is an appeal to the CTA from a decision of CIR, COC or the RTC, provincial, municipal treasurer, or the Secretary of Finance, Secretary of Trade and Industry or Secretary of Agriculture, as the case may be; and
• In the opinion of the Court, the collection by the aforementioned government agencies may jeopardize the interest of the Government and/or taxpayer.

In case of suspension, what is the taxpayer required to do?

The taxpayer will be required to either deposit the amount claimed or file a surety bond for not more than double the amount with the Court.

Suspension of Collection of Taxes

General Rule: No injunction to restrain collection of taxes

Exception: Under Section 9 of RA 9282, amending Section 11 of RA 1125, suspension is allowed when the following conditions concur:³

• It is an appeal to the CTA from a decision of CIR, COC or the RTC, provincial, municipal treasurer, or the Secretary of Finance, Secretary of Trade and Industry or Secretary of Agriculture, as the case may be; and
• In the opinion of the Court, the collection by the aforementioned government agencies may jeopardize the interest of the Government and/or taxpayer.

In case of suspension, what is the taxpayer required to do?

The taxpayer will be required to either deposit the amount claimed or file a surety bond for not more than double the amount with the Court.