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Email Opinion - Diloy - 4S 1
Email Opinion - Diloy - 4S 1
This legal opinion seeks to answer your question on the remedy available to you to assail the
adverse finding of the Secretary of Finance on your request for review of BIR Ruling No. 10-17.
The Facts
Based on our discussions and the documents you have made available, the following are the
pertinent facts:
In January 2017, St. Therese Educational Foundation, Inc. filed a request for a Bureau of Internal
Revenue (BIR) Ruling to confirm its status as a non-stock non-profit educational institution, and
consequently exempt from income tax pursuant to Section 30 (H) of the National Internal
Revenue Code (NIRC). The BIR, however, denied your institution’s request through BIR Ruling
No. 10-17. Thus, within the time prescribed by law, you appealed the said ruling with the
Secretary of Finance.
On September 2, 2020, you received the ruling of the Secretary of Finance finding the denial by
the BIR proper on account of its finding, albeit on a different basis, that your institution does not
qualify as a non-stock non-profit educational institution.
Sec. 7(a)(1) of RA 1125, as amended, grants the Court of Tax Appeals (CTA) with exclusive
appellate jurisdiction over “other matters” arising under the NIRC or other laws administered by
the BIR. As stated:
In Philippine American Life and General Insurance Company v. The Secretary of Finance 1, the
Supreme Court held that Section 7(a)(1) of RA 1125, as cited above, is sufficient enough to
include appeals from the Secretary’s review under Sec. 4 of the NIRC.
In the same case, the Supreme Court determined whether the court with jurisdiction to take
cognizance of the appeal from the Secretary’s review would differ when what is assailed is the
propriety of the tax treatment of a certain transaction vis-à-vis the validity of a particular
administrative rule or regulation. Here, the Supreme Court settled conflicting jurisprudence and
finally held that both are within the jurisdiction of the CTA.
Based on the law and case cited above, the appropriate remedy to assail the finding of the
Secretary of Finance is to appeal the same with the CTA.
Thus, pursuant to the Revised Rules on the Court of Tax Appeals, you should file a petition for
review in accordance with Rule 42 of the Rules of Court with the CTA Division within thirty
(30) days from your receipt of BIR Ruling No. 10-17, that is, on or before October 2, 2020.
If you have further questions or clarifications, please do not hesitate to contact me. I appreciate
the opportunity to advise you regarding this matter. I will be sending a separate legal opinion as
to the substantive issues involved, as previously agreed upon.
Thank you and stay safe and healthy.
Most Sincerely,
1
G.R. No. 210987, November 24, 2014