BDB Law has released its latest advisory, titled “The Court of Tax Appeals Temporarily Stops the Implementation of RMC No. 5-2024.” The update highlights a recent development in the Philippine tax landscape and provides guidance for businesses and stakeholders monitoring ongoing regulatory changes.
In its advisory, the firm discusses the Resolution issued by the Court of Tax Appeals (CTA) En Banc dated March 31, 2026, in the case of Australia and New Zealand Banking Group Limited, et al. vs. Commissioner of Internal Revenue (CTA Case No. EB SCA-0003). In this Resolution, the CTA granted an Application for a Writ of Preliminary Injunction, thereby enjoining the implementation, in any manner, of Revenue Memorandum Circular (RMC) Nos. 5-2024 and 38-2024 while the case remains pending and until further orders are issued by the Court.
This development temporarily suspends the enforcement of the subject RMCs, which have been closely followed by taxpayers and industry stakeholders. As the matter is still under judicial consideration, the injunction is provisional in nature and may be subject to further developments depending on the outcome of the case.
The advisory also notes BDB Law’s view that RMC No. 24-2026 may likewise be considered encompassed by the injunction. As indicated in its title, RMC No. 24-2026 was issued to clarify the provisions of RMC Nos. 5-2024 and 38-2024, rather than introduce a separate issuance. Given this context, the firm suggests that such clarification may also be treated as suspended, unless and until the Court provides further direction on the matter. This interpretation, however, reflects the firm’s position and has not been expressly ruled upon by the CTA.
In light of these developments, businesses are encouraged to closely monitor updates and assess any potential impact on their compliance approaches, taking into account that the current status remains subject to judicial review.
As regulatory changes continue to evolve, BDB Law remains committed to providing timely, relevant, and practical insights to support informed decision-making among its clients and partners.
See the full memorandum here: https://www.bdblaw.com.ph/index.php/knowledge/recent-laws/1468-enjoinment-of-the-implementation-of-revenue-memorandum-circular-nos-5-2024-and-38-2024