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  • Email Opinion - Diloy - 4S 1

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    The legal opinion addresses the appropriate remedy available to appeal an adverse finding by the Secretary of Finance regarding St. Therese Educational Foundation's tax-exempt status. The opinion concludes that based on relevant law and jurisprudence, the Court of Tax Appeals has exclusive appellate jurisdiction over decisions of the Secretary of Finance on tax matters. Therefore, the Foundation should file a petition for review with the Court of Tax Appeals within 30 days, by October 2, 2020, to assail the Secretary's finding.

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    The legal opinion addresses the appropriate remedy available to appeal an adverse finding by the Secretary of Finance regarding St. Therese Educational Foundation's tax-exempt status. The opinion concludes that based on relevant law and jurisprudence, the Court of Tax Appeals has exclusive appellate jurisdiction over decisions of the Secretary of Finance on tax matters. Therefore, the Foundation should file a petition for review with the Court of Tax Appeals within 30 days, by October 2, 2020, to assail the Secretary's finding.

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    © All Rights Reserved
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    50 views2 pages

    Email Opinion - Diloy - 4S 1

    Uploaded by

    FelyDiloy
    The legal opinion addresses the appropriate remedy available to appeal an adverse finding by the Secretary of Finance regarding St. Therese Educational Foundation's tax-exempt status. The opinion concludes that based on relevant law and jurisprudence, the Court of Tax Appeals has exclusive appellate jurisdiction over decisions of the Secretary of Finance on tax matters. Therefore, the Foundation should file a petition for review with the Court of Tax Appeals within 30 days, by October 2, 2020, to assail the Secretary's finding.

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    of 2

    5 September 2020

    Mr. Paul Joshua M. Rivera


    Vice President for Academics
    St. Therese Educational Foundation, Inc.
    Adriatico Street
    Manila, Philippines

    Dear Mr. Rivera:

    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.

    The Applicable Law

    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:

    Sec. 7. Jurisdiction. - The CTA shall exercise:


    a. Exclusive appellate jurisdiction to review by appeal, as herein provided:
    1. Decisions of the Commissioner of Internal Revenue in cases involving disputed
    assessments, refunds of internal revenue taxes, fees or other charges, penalties in
    relation thereto, or other matters arising under the NIRC or other laws
    administered by the BIR. (emphasis supplied)
    The Applicable Jurisprudence

    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.

    Analysis and Recommendation

    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,

    (Sgd.) Felicidad N. Diloy

    1
    G.R. No. 210987, November 24, 2014

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