Tax Updates January 2023 (SyCipLaw Tax Issues And Practical Solutions (T.I.P.S.) Vol. 22)

1. Does the Court of Tax Appeals have jurisdiction over a tax dispute involving solely two government agencies under the Executive Department?

None. In The Department of Energy ("DOE") v. Court of Tax Appeals ("CTA") (G.R. No. 260912, August 17, 2022), the Supreme Court held that it is the Executive, acting through the Solicitor General or the Secretary of Justice, as the case may be, that has jurisdiction over a tax dispute involving two government agencies under the Executive Department.

In DOE v. CTA, the Bureau of Internal Revenue ("BIR") assessed deficiency excise taxes against the DOE. The DOE filed a petition for review before the CTA Second Division, which dismissed the petition for lack of jurisdiction. The CTA En Banc affirmed the dismissal.