UPGRADED CTA TO EXPEDITE TAX-RELATED CASES

Senator Bong Revilla expressed optimism that an already expanded Court of Tax Appeals (CTA) will speed up disposition of tax-related cases that deprive the national government an estimated P243 billions in revenues annually.

The senator is referring to Republic Act 9503, signed recently into law that expanded the organizational structure of the CTA. The new law added three more members to the CTA, currently composed of six associate justices.

"The ball is now in the hands of the Court of Tax Appeals. The legislators have made their move and we are now hoping for CTA's concrete action, "said Revilla, principal author of the legislative measure in the Senate that created RA 9503.

Revilla noted the report of the Department of Finance (DOF) last year that says the national government is losing a total of P6.5 billion in taxes due to 87 tax-evasion cases in various stages of prosecution at the Department of Justice (DOJ) and the CTA.

The DOF said the P6.5 billion involved in these cases is just a fraction of the estimated P243 billion in potential tax revenue lost to tax evasion annually, approximately equivalent to one-third of the Bureau of Internal Revenue (BIR)'s 2007 revenue target.

"A speedy litigation of tax cases such as tax evasion, tax fraud and violations of the Tariff and Customs Code would strengthen efforts for the recovery of tax revenue loses and this would also result to additional government fund for social services, infrastructure, and subsidies for food, energy and education," Revilla explained.

RA 9503 will add one division to the two-division CTA. The CTA will also be given a budget of P20 milyon in operational funding to be taken from whatever source available in the National Treasury.

Revilla further pointed out that with the enactment of RA 9503, it would be more certain that the CTA will achieve its goals which include ensuring the fair collection of taxes by the government.

"With additional division, justices and budget, faithful taxpayers would also be more protected against unreasonable and unjustified tax assessments," he added.