Monday, September 01, 2008 Bataan’s plea to collect Peza’s unpaid taxes junked
THE Court of Appeals (CA) has dismissed the bid of the Bataan Provincial Treasurer’s Office (PTO) to collect from the Philippine Economic Zone Authority (Peza) over P110 million representing alleged unpaid real property tax obligations.
In a decision penned by Associate Justice Marlene Gonzales-Sison, the CA Eleventh Division granted Peza’s petition seeking the reversal of the decision and resolution of the Pasay City Regional Trial Court (RTC) Branch 115 for the issuance of a temporary restraining order (TRO) and preliminary injunction enjoining the PTO from proceeding with the collection of the alleged unpaid taxes.
The appellate court likewise nullified the real property tax assessment and notice of delinquency issued by the PTO against Peza, the auction sale of the subject lots conducted by public respondents, the certificate of sale issued in favor of the Bataan Provincial Government as sole bidder in the auction sale of these lots.
“Consistent with our ruling that Peza is exempt from payment of real property tax, the assessment and all the proceedings for its collection that were undertaken by Bataan and the Provincial Treasurer’s Office must be declared null and void,” the CA ruled.
The CA, however, said it found no sufficient evidence that respondents willfully intended to violate the TRO that it issued on October 17, 2007, saying the auction had already been in effect at that time.
The court said Republic Act 7916, which created the Peza, granted it a corporate personality while being an instrumentality of the National Government.
It further cited a Supreme Court (SC) ruling which states that being an instrumentality of the National Government, “Peza is generally exempt from payment of real property tax.”
Court records showed that the PTO sent a letter to Peza on May 29, 2003 informing it of its alleged real property tax liability amounting to P110,549,032 due on the lots located at the Bataan Economic Zone in Mariveles, Bataan, covering the period of June 1, 1995 to December 31, 2002.
Citing the pending petition for declaratory relief for its exemption from real property tax that it filed before the Pasay RTC, Peza requested for the suspension of the service of the real property tax billing and later, the collection of tax.
The PTO denied the request of Peza and issued a warrant of levy on the subject lots. It maintained that it is exempt from paying real property tax while the PTO insisted on the collection of the tax.
Finally on May 7, 2004, the PTO sent a copy of a Notice of Delinquency in Payment of Real Property to Peza; and on June 4, 2004, a copy of a “Notice of Sale of Real Property for Unpaid Real Property Tax.”
On June 14, 2004, Peza filed a petition with the trial court but it was denied, prompting petitioner to elevate the case before the CA. (ECV/Sunnex)
