What are the conditions that must be complied with before the Court of Tax Appeals may suspend the collection of national internal revenue taxes? (3%)
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The CTA may suspend national tax collection if an appeal is pending, collection jeopardizes government or taxpayer interests, and the taxpayer deposits the claimed amount or posts a surety bond. Under Sec. 11, RA 1125 (as amended
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Quick check
Under Section 11 of RA 1125, as amended by RA 9282, which judicial court has the authority to suspend the collection of national internal revenue taxes?
Section 11 of RA 1125 grants the Court of Tax Appeals the authority to suspend tax collection during an appeal.
What condition must be shown regarding tax collection before the Court of Tax Appeals may order its suspension?
The CTA may suspend collection if it is shown that collection will jeopardize the interest of the government or the taxpayer.
What is the maximum limit for the surety bond that the Court of Tax Appeals may require to suspend tax collection?
Section 11 of RA 1125 limits the required surety bond to not more than double the tax claimed.
When may the Court of Tax Appeals dispense with the required surety bond or deposit for suspending tax collection?
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Which provision of the National Internal Revenue Code generally prohibits courts from issuing injunctions against tax collection?
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Learn more about these topics
1. Suspension Injunction Authority
Under Section 11 of Republic Act No. 1125, as amended by Republic Act No. 9282, the Court of Tax Appeals possesses ancillary statutory authority to suspend or enjoin the collection of national internal revenue taxes. While tax collection is generally immune from judicial injunctions under Section 218 of the Tax Code, the Court of Tax Appeals may issue a suspension order when collection would jeopardize the interest of the government or the taxpayer.
2. Injunction Condition Requirements
To obtain an order suspending tax collection, the taxpayer must demonstrate three essential legal conditions: an appeal must be pending before the Court of Tax Appeals, collection efforts must cause irreparable injury or jeopardize government or taxpayer interests, and the taxpayer must deposit the amount claimed or post a surety bond. The surety bond amount fixed by the court cannot exceed double the assessed deficiency tax.
3. Injunction Bond Exceptions
Although filing a surety bond or cash deposit is mandatory prior to suspending tax collection, established jurisprudence allows the Court of Tax Appeals to dispense with the bond requirement under exceptional circumstances. When the administrative collection method executed by revenue officers is blatantly illegal, contrary to law, or manifestly barred by statutory prescription, the court may enjoin collection without requiring a financial deposit or bond from the taxpayer.