Authority of Ordinary Courts to Collect Taxes

TAXATION QUESTION 2001

May the courts enjoin the collection of revenue taxes? Explain your answer.

SUGGESTED ANSWER:

As a general rule, the courts have no authority to enjoin the collection of revenue taxes. (Sec. 218, NIRC). However, the Court of Tax Appeals is empowered to enjoin the collection of taxes through administrative remedies when collection could jeopardize the interest of the government or taxpayer. (Section 11, RA 1125).