After filing an Information for violation of Section 254 of the National Internal Revenue Code (Attempt to Evade or Defeat Tax) with the CTA, the Public Prosecutor manifested that the People is reserving the right to file the corresponding civil action for the recovery of the civil liability for taxes. As counsel for the accused, comment on the People’s manifestation. (3%)
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The Public Prosecutor's manifestation reserving the right to file a separate civil action is improper and legally untenable. Under Sec. 7(b)(1), R.A. No. 9282 and Rule 9, Sec. 1, Revised Rules of the CTA (Santos v.
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Quick check
What is the statutory rule regarding the civil action for tax liability when a criminal tax case is filed with the CTA?
Under Section 7(b)(1) of RA 9282, the civil action for taxes is simultaneously instituted and jointly determined with the criminal action.
Is the Public Prosecutor permitted to reserve the right to file a separate civil action for tax liability in the CTA?
In tax cases before the CTA, no reservation to file the civil action for tax liability separately is recognized or allowed.
Which landmark Supreme Court decision reiterated that civil tax liability is jointly determined with the criminal action in the CTA?
Santos v. People affirmed that criminal and civil actions for tax liability are simultaneously instituted and jointly tried before the CTA.
What is the effect of filing a criminal Information for tax evasion under Section 254 of the NIRC before the CTA?
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What is the jurisdictional threshold of principal tax claimed for the CTA to exercise exclusive original jurisdiction over tax crimes?
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1. Joint Tax Institution
Under Section 7(b)(1) of Republic Act Number 9282 and Rule 9, Section 1 of the Revised Rules of the Court of Tax Appeals, the criminal action and the corresponding civil action for the recovery of civil liability for taxes shall at all times be simultaneously instituted and jointly determined in the same proceeding. Unlike ordinary criminal prosecutions under the Rules of Court, no reservation of the right to institute the civil action separately is recognized or allowed in tax cases before the Court of Tax Appeals.
2. Prohibition on Reservation
In Santos versus People, the Supreme Court affirmed that the civil action for collection of taxes is automatically deemed instituted upon the filing of the criminal Information before the Court of Tax Appeals. Consequently, any manifestation by the public prosecutor reserving the right to file a separate civil action for tax collection is procedurally improper, legally untenable, and directly violates statutory mandates governing tax litigation.
3. Exclusive CTA Jurisdiction
The Court of Tax Appeals exercises exclusive original jurisdiction over criminal offenses arising from violations of the National Internal Revenue Code where the principal amount of taxes or fees claimed is one million pesos or more. Because civil tax liability is inextricably intertwined with criminal tax evasion under Section 254 of the Tax Code, split jurisdiction is prohibited, ensuring that assessment, collection, and criminal prosecution are resolved in a unified judicial forum.