EN BANC
|
Allied
Banking Corporation as Trustee for the Trust Fund of College Assurance Plan
Philippines, Inc. (CAP), Petitioner, - versus - The
Respondents. |
G.R. No. 154126 Present: PANGANIBAN, C.J., PUNO, QUISUMBING, YNARES-SANTIAGO, SANDOVAL-GUTIERREZ, CARPIO, AUSTRIA-MARTINEZ, CARPIO
MORALES, CALLEJO,
SR., AZCUNA,
TINGA,
CHICO-NAZARIO,
GARCIA,
and VELASCO,
JR., JJ. Promulgated: |
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R E S O L U T I O N
CARPIO MORALES, J.:
Allied Banking Corporation (petitioner) filed the instant
motion for clarification of the Decision of this Court promulgated on October
11, 2005 which declared as invalid the third sentence of Section 3, Quezon City Ordinance No. 357 Series of 1995 (the proviso)[1] for
adopting a method of assessment or appraisal of real property contrary to the
Local Government Code and its Implementing Rules and Regulations and the Local
Assessment Regulations No. 1-92 issued by the Department of Finance.
Petitioner contends in its
motion for clarification that the return of the real property tax erroneously collected and
paid is a necessary consequence of this Court’s finding that the proviso is invalid, hence, there is no need to claim for a
refund with the Local Board of Assessment Appeals[2] as
provided by the second paragraph of the dispositive
portion of the decision to wit:
WHEREFORE, the petition is hereby GRANTED. The assailed portion of the provisions of
Section 3 of Quezon City Ordinance No. 357 is hereby
declared invalid.
Petitioner’s claim for refund, however, must be
lodged with the Local Board of Assessment Appeals, if it is not barred by the
statute of limitations. (Underscoring supplied)
Treating the motion for clarification as a motion for
reconsideration, this Court required respondents to comment thereon.
In their Comment, respondents
aver that with the Court’s finding that petitioner failed to exhaust
administrative remedies,[3] “it
cannot be allowed to create legal shortcut” by demanding that the real property
tax it paid be refunded to it without going through the usual procedure
provided for by the Local Government Code,[4]
specifically Sections 252,[5] 226,[6]
229,[7]
230[8]
and 231[9]
thereof. As respondents conclude that the Court’s decision
is clear and exhaustive to guide the parties, they pray that the motion for
clarification be denied.
This Court notes that prior to the filing before the trial
court of the petition for declaration of nullity of the proviso, petitioner
commenced a claim for refund with the City Treasurer who referred it to the
City Assessor.
The City Assessor denied petitioner’s claim for refund by
letter dated
Please be informed that the subject new
assessment was made by the Office of the City Assessor in faithful compliance
with the provision of 3rd [s]entence of
Section 3, Ordinance No. SP-357, S-95. The
duty of the City Assessor is to apply the said statutory provision and not
interpret the same. Under the settled jurisprudence in our jurisdiction, the
City Assessor, being in the Executive Department, is duty bound to implement
the said provision. The same is presumed
valid and legal unless declared otherwise by a court of competent jurisdiction.[10] (Underscoring supplied)
In its Decision subject of the present motion, this
Court ruled that the assailed proviso is null and void ab
initio for being ultra vires
and for contravening the provisions of the Local Government Code and its Implementing Rules
and Regulations and Local Assessment Regulations No. 1-92 and, as such, it
acquired no legal effect and conferred no rights from its inception.[11]
Clearly, petitioner and all
those similarly situated are entitled to a tax refund/credit corresponding to
the difference between the assessed value based on the proviso and the assessed
value based on the then prevailing schedule of fair market values prepared by
the City Assessor.
It bears stressing, however, that entitlement to a tax refund does not necessarily call for the automatic payment of the sum claimed.[12] The amount of the claim being a factual matter, it must still be proven in the normal course and in accordance with the administrative procedure for obtaining a refund of real property taxes, as provided under the Local Government Code.
Under Section 253 of the Local Government Code, the claim for refund or credit for taxes must be filed before the city treasurer[13] who shall decide the claim based on the tax declarations, affidavits, documents and other documentary evidence to be presented by petitioner.
SEC.
253. Repayment of Excessive Collections. – When an assessment of basic real
property tax, or any other tax levied under this Title, is found to be illegal
or erroneous and the tax is accordingly reduced or adjusted, the taxpayer may
file a written claim for refund or credit for taxes and interests with the
provincial or city treasurer within two (2) years from the date the taxpayer is
entitled to such reduction or adjustment.
The provincial or city treasurer shall decide the claim for tax refund or credit within sixty (60) days from receipt thereof. In case the claim for tax refund or credit is denied, the taxpayer may avail of the remedies provided in Chapter 3, Title Two, Book II of this Code.
WHEREFORE,
in light of the foregoing discussion, the second paragraph of the earlier
quoted dispositive portion of the Decision of this
Court dated
Petitioner’s claim for refund may be pursued in accordance with Section 253 of the Local Government Code within Two (2) Years from the finality of this Decision.
SO
ORDERED.
CONCHITA
CARPIO MORALES
Associate Justice
WE CONCUR:
ARTEMIO V. PANGANIBAN
Chief Justice
|
REYNATO S. PUNO Associate Justice |
LEONARDO A. QUISUMBING Associate Justice |
|
CONSUELO YNARES- Associate Justice |
ANGELINA SANDOVAL-GUTIERREZ Associate Justice |
|
ANTONIO T. CARPIO Associate Justice |
MA. ALICIA AUSTRIA-MARTINEZ Associate Justice |
|
RENATO C. CORONA Associate Justice ADOLFO S. AZCUNA Associate Justice |
ROMEO J. CALLEJO, SR. Associate Justice DANTE O. TINGA Associate Justice |
|
MINITA CHICO-NAZARIO Associate Justice |
CANCIO C. GARCIA Associate Justice |
Associate Justice
Pursuant to
Section 13, Article VIII of the Constitution, it is hereby certified that the
conclusions in the above Resolution were reached in consultation before the
case was assigned to the writer of the opinion of the Court.
ARTEMIO V. PANGANIBAN
Chief Justice
[1] Section 3.
The City Assessor shall undertake a general revision of real property
assessments using as basis the newly approved schedule specified in Sections 1
and 2 hereof. He shall apply the new
assessment level of 15% for residential and 40% for commercial and industrial
classification, respectively as prescribed in Section 8 (a) of the 1993 Quezon City Revenue Code to determine the assessed value of
the land. Provided; however, that parcels of land sold, ceded, transferred
and conveyed for remuneratory consideration after the
effectivity of this revision shall be subject to real
estate tax based on the actual amount reflected in the deed of conveyance or
the current approved zonal valuation of the Bureau of Internal Revenue
prevailing at the time of sale, cession, transfer and conveyance, whichever is
higher, as evidenced by the certificate of payment of the capital gains tax
issued therefor.
(Emphasis and
underscoring supplied)
[2] Rollo,
pp. 262.
[3]
[4]
[5] SECTION
252. Payment Under Protest. — (a) No
protest shall be entertained unless the taxpayer first pays the tax. There
shall be annotated on the tax receipts the words "paid under
protest". The protest in writing must be filed within thirty (30) days
from payment of the tax to the provincial, city treasurer or municipal
treasurer, in the case of a municipality within Metropolitan Manila Area, who
shall decide the protest within sixty (60) days from receipt.
(b) The tax or a portion thereof paid under
protest, shall be held in trust by the treasurer concerned.
(c) In the event that the protest is finally
decided in favor of the taxpayer, the amount or portion of the tax protested
shall be refunded to the protestant, or applied as tax credit against his
existing or future tax liability.
(d) In the event that the
protest is denied or upon the lapse of the sixty day period prescribed in
subparagraph (a), the taxpayer may avail of the remedies as provided for in
Chapter 3, Title II, Book II of this Code.
[6] SECTION 226. Local
Board of Assessment Appeals. — Any owner or person having legal interest in
the property who is not satisfied with the action of the provincial, city or
municipal assessor in the assessment of his property may, within sixty (60)
days from the date of receipt of the written notice of assessment, appeal to
the Board of Assessment Appeals of the provincial or city by filing a petition
under oath in the form prescribed for the purpose, together with copies of the
tax declarations and such affidavits or documents submitted in support of the
appeal.
[7] SECTION 229. Action by the Local Board of Assessment
Appeals. — (a) The Board shall decide the appeal within one hundred twenty
(120) days from the date of receipt of such appeal. The Board, after hearing,
shall render its decision based on substantial evidence or such relevant
evidence on record as a reasonable mind might accept as adequate to support the
conclusion.
(b) In the exercise
of its appellate jurisdiction, the Board shall have the power to summon
witnesses, administer oaths, conduct ocular inspection, take depositions, and
issue subpoena and subpoena duces tecum.
The proceedings of the Board shall be conducted solely for the purpose of
ascertaining the facts without necessarily adhering to technical rules
applicable in judicial proceedings.
(c) The secretary of the Board
shall furnish the owner of the property or the person having legal interest
therein and the provincial or city assessor with a copy of the decision of the
Board. In case the provincial or city assessor concurs in the revision or the
assessment, it shall be his duty to notify the owner of the property or the
person having legal interest therein of such fact using the form prescribed for
the purpose. The owner of the property or the person having legal interest
therein or the assessor who is not satisfied with the decision of the Board,
may, within thirty (30) days after receipt of the decision of said Board,
appeal to the Central Board of Assessment Appeals, as herein provided. The
decision of the Central Board shall be final and executory.
[8] SECTION 230. Central Board of Assessment Appeals. — The
Central Board of Assessment Appeals shall be composed of a chairman, and two
(2) members to be appointed by the President, who shall serve for a term of
seven (7) years, without reappointment. Of those first appointed, the chairman
shall hold office for seven (7) years, one member for five (5) years, and the other
member for three (3) years. Appointment to any vacancy shall be only for the
unexpired portion of the term of the predecessor. In no case shall any member
be appointed or designated in a temporary or acting capacity. The chairman and
the members of the Board shall be Filipino citizens, at least forty (40) years
old at the time of their appointment, and members of the Bar or Certified
Public Accountants for at least ten (10) years immediately preceding their
appointment. The chairman of the Board of Assessment Appeals shall have the
salary grade equivalent to the rank of Director III under the Salary
Standardization Law exclusive of allowances and other emoluments. The members
of the Board shall have the salary grade equivalent to the rank of Director II
under the Salary Standardization Law exclusive of allowances and other
emoluments. The Board shall have appellate jurisdiction over all assessment
cases decided by the Local Board of Assessment Appeals.
[9] SECTION 231. Effect of Appeal on the Payment of Real
Property Tax. — Appeal on assessments of real property made under the
provisions of this Code shall, in no case, suspend the collection of the
corresponding realty taxes on the property involved as assessed by the
provincial or city assessor, without prejudice to subsequent adjustment
depending upon the final outcome of the appeal.
[10] Rollo, p. 92.
[11]
[12] Calamba
Steel Center, Inc. v. Commissioner of Internal Revenue, G.R. No. 151857,
April 28, 2005, 457 SCRA 482, 487.
[13] Ty v. Trampe, supra at 104.