ii. Exclusive Original and Appellate Jurisdiction Over Criminal Cases

DOJ Resolution in a Preliminary Investigation Involving Tax and Tariff Offenses

Under RA 9282¹, the rule on where to appeal decisions of the Secretary of the DOJ is no longer clear. However, as stated in City of Manila v. Grecia-Cuerdo, G.R. No. 175723, 4 February 2014², split-jurisdiction is frowned upon and such principle should be interpreted to carry forward to a DOJ resolution in a preliminary investigation involving tax and tariff offenses. The oversight notwithstanding, the Court relaxed the rule given that the City of Manila v. Grecia-Cuerdo decision just came out recently and referred the matter to the CTA. (Bureau of Customs v. Devanadera, G.R. No. 193253, 8 September 2015³)

Exclusive Original Jurisdiction

The CTA shall exercise exclusive original jurisdiction over all criminal cases where the principal amount involved of taxes and fees is P1,000,000 or more, exclusive of charges and penalties, arising from violations of the NIRC, TCC and other laws administered by the BOC or the BIR.

Exclusive Appellate Jurisdiction

Appeals from judgments, resolutions or orders of the RTCs in tax cases originally decided by them in their respective territorial jurisdiction; and

Petitions for review of the judgments, resolutions or orders of the RTCs in the exercise of their appellate jurisdiction over tax cases originally decided by the MeTCs, MTCs or MCTCs.

Summary

Appealable to the CTA (or reviewable by certiorari, when warranted) ---

• Ruling of SOF on RRs, RMCs, rulings, etc
• Interlocutory RTC orders in cases within the CTA’s appellate jurisdiction may be reviewed by the CTA through a petition for certiorari for grave abuse of discretion (City of Manila v. Grecia-Cuerdo, G.R. No. 175723, February 4, 2014)
• Tax collection cases (of duties) from RTC
• A DOJ resolution dismissing a customs criminal complaint may, when warranted, be challenged before the CTA by a petition for certiorari alleging grave abuse of discretion; it is not an ordinary appeal (Bureau of Customs v. Devanadera, G.R. No. 193253, September 8, 2015)

Appealable to the SC ---

• Ruling of SOF if there are compelling circumstances
• Pure question of law (Alta Vista case⁴)

SOF has jurisdiction to review COC’s issuance (CMC) as an exercise of quasi-legislative function

In local tax collection cases, the amount of the claim determines where the case should be filed. (China Banking Corporation v. City Treasurer of Manila, G.R. No. 204117, 1 July 2015)⁵

• When the claim does not exceed ₱2,000,000, the case should be filed in the appropriate first-level court, not the RTC; when it exceeds ₱2,000,000, it should be filed in the RTC (RA 11576, amending Batas Pambansa Blg. 129, secs. 19 and 33).
• The RTC exercises appellate jurisdiction over local tax collection cases originally decided by a first-level court; it exercises original jurisdiction when the claim exceeds ₱2,000,000.

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Procedures

• Filing of an Action for Collection of Taxes
• Internal Revenue Taxes
• Local Taxes

DOJ Resolution in a Preliminary Investigation Involving Tax and Tariff Offenses

Under RA 9282⁶, the rule on where to appeal decisions of the Secretary of the DOJ is no longer clear. However, as stated in City of Manila v. Grecia-Cuerdo⁷, split-jurisdiction is frowned upon and such principle should be interpreted to carry forward to a DOJ resolution in a preliminaryinvestigation involving tax and tariff offenses. The oversight notwithstanding, the Court relaxed the rule given that the Grecia-Cuerdo decision just came out recently and referred the matter to the CTA. (Bureau of Customs v. Devanadera)⁸

NATURE OF THE COURT OF TAX APPEALS

EXCLUSIVE ORIGINAL AND APPELLATE JURISDICTION OVER CRIMINAL CASES

Exclusive Original Jurisdiction

The CTA shall exercise exclusive original jurisdiction over all criminal cases where the principal amount involved of taxes and fees is P1,000,000 or more, exclusive of charges and penalties, arising from violations of the NIRC, TCC and other laws administered by the BOC or the BIR.

Exclusive Appellate Jurisdiction

Appeals from judgments, resolutions or orders of the RTCs in tax cases originally decided by them in their respective territorial jurisdiction; and

Petitions for review of the judgments, resolutions or orders of the RTCs in the exercise of their appellate jurisdiction over tax cases originally decided by the MeTCs, MTCs or MCTCs.

Summary

Appealable to the CTA ---

• Ruling of SOF on RRs, RMCs, rulings, etc
• Tax collection cases (of duties) from RTC
• A DOJ resolution dismissing a customs criminal complaint may, when warranted, be challenged before the CTA by a petition for certiorari alleging grave abuse of discretion; it is not subject to an ordinary appeal (Bureau of Customs v. Devanadera, G.R. No. 193253, September 8, 2015).

Interlocutory RTC orders in cases within the CTA’s appellate jurisdiction are not ordinarily appealable; when warranted by grave abuse of discretion, they are reviewable by the CTA through a petition for certiorari (City of Manila v. Grecia-Cuerdo, G.R. No. 175723, February 4, 2014).

Appealable to the SC ---

• Ruling of SOF if there are compelling circumstances
• Pure question of law (Alta Vista case)⁹

SOF has jurisdiction to review COC’s issuance (CMC) as an exercise of quasi-legislative function

In local tax collection cases, the amount of the claim determines where the case should be filed. (China Banking Corporation)¹⁰

• When the claim does not exceed ₱2,000,000, the case should be filed in the appropriate first-level court, not the RTC; when it exceeds ₱2,000,000, it should be filed in the RTC (RA 11576, amending Batas Pambansa Blg. 129, secs. 19 and 33).
• The RTC exercises appellate jurisdiction over local tax collection cases originally decided by a first-level court; it exercises original jurisdiction when the claim exceeds ₱2,000,000.

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