CAMP CAMP JOHN JOHN HAY HAY DEVEL DEVELOP OPMEN MENT T CORP CORPORA ORATIO TION N vs. CENTRAL BOARD OF ASSESSMENT APPEALS (CBAA) FACTS: In a letter dated 21 March 2002, respondent City Assessor of Baguio City notied petitioner Camp John Hay e!elopment Corporation a"out the issuance against it of thirty#si$ %&'( )*ner+s Copy of Assessment of eal -roperty -roperty %A-(, co!ering !arious "uildings of petitioner and t*o %2( parcels of land o*ned o*ned "y the Bases Bases Con!er Con!ersio sion n e!elo e!elopme pment nt Author Authority ity %BCA %BCA(( in the John John Hay .pecia .peciall /conom /conomic ic one one %JH./ %JH./(, (, Baguio City, *hich *ere leased out to petitioner petitioner In respo response nse,, petitio petitioner ner uesti uestione oned d the assess assessmen ments ts in a letter dated &April 2002 for lac3 of legal "asis due to the City Assessor+s failure to identify the specic properties and its corresponding corresponding assessed !alues 4he City Assessor replied in a letter letter dated 11 April 2002 that the su"5ect su"5ect A-s %*ith an additional A- on another "uilding "ringing the total num"er of A-s A-s to thirt thirty# y#se se!e !en n 6&78 6&78(( agai agains nstt the the "uild "uilding ings s of petitioner located *ithin the JH./ *ere issued on the "asis of the appro appro!ed !ed "uildin "uilding g permit permits s o"tain o"tained ed from from the City City /ngineer+s )9ce of Baguio City and pursuant to .ections 201 to 20' of A :o 71'0 or the ; of the ules of -rocedure -rocedure Before the ;BAA, and en5oined petitioner to rst comply there*ith, particularly as to the payment under protest of the su"5ect real property ta$es "efore the hearing of its appeal
4he CBAA denied petitioner+s appeal in a esolution esolution dated 2& May May 200& 200&,, set set aside aside the the B4AA+ B4AA+s s orde orderr of defe deferm rmen entt of hearing, and remanded the case to the ;BAA of Baguio City for furthe furtherr proce proceedi edings ngs su"5ec su"5ectt to a full full and up#to# up#to#dat date e paym paymen entt of the the real realty ty ta$e ta$es s on su"5 su"5ec ectt prop proper erti ties es as assessed assessed "y the respondent respondent City Assessor Assessor of Baguio Baguio City, either in cash or in "ond Citing !arious cases it pre!iously decided, the CBAA e$plained that the deferment of hearings "y the ;BAA *as merely in compliance *ith the mandate of the la* 4he go!erning pro!ision in this case is .ection 2&1, not .ection 22', of A :o 71'0 *hich pro!ides that ?appeal on assessments of real property made under the pro!isions of this Code shall, in no case, suspend the collection of the corr corresp espond onding ing realt realty y ta$es ta$es on the prope property rty in!ol! in!ol!ed ed as assessed "y the pro!incial or city assessor, *ithout pre5udice to su"seuent ad5ustment depending upon the nal outcome of the appeal? In addition, as to the issue raised pertaining to the propriety of the su"5ect assessments issued against petitioner, allegedly claimed to "e a ta$#e$empt entity, the CBAA e$pressed that it has yet to acuire 5urisdiction o!er it since the same has not "een resol!ed "y the ;BAA C4A C4A /n Banc Banc found found that that petitio petitioner ner has indeed indeed failed failed to comply *ith .ection 2@2 of A :o 71'0or the ; of the ules ules of -rocedure "efore the ;BAA
ISSUE: hether respondent C4A C4A /n Banc erred in dismissing for lac3 of merit the petition and accordingly a9rmed the order of the CBAA to remand the case to the ;BAA of Baguio City for further proceedings su"5ect to a full and up#to#date payment of realt realty y ta$es, ta$es, either either in cash cash or in "ond, "ond, on the su"5ec su"5ectt properties assessed "y the City Assessor of Baguio City HELD: NO. .ect .ectio ion n 2@2 2@2 of A :o :o 71'0 71'0,, also also 3no* 3no*n n as the the ;
./C 2@2 -ayment Ender -rotest F %a( :o protest shall "e entertained unless the ta$payer rst pays the ta$ 4here shall "e annotated on the ta$ receipts the *ords ?paid under protest? 4he protest in *riting must "e led *ithin thirty %&0( days from payment of the ta$ to the pro!incial, city treasurer or municipal treasurer, in the case of a municipality *ithin Metropolitan Manila Area, *ho shall decide the protest *ithin si$ty %'0( days from receipt %"( 4he ta$ or a portion thereof paid under protest, shall "eheld in trust "y the treasurer concerned %c( In the e!ent that the protest is nally decided in fa!or of the ta$payer, the amount or portion of the ta$ protested shall "e refunded to the protestant, or applied as ta$ credit against his e$isting or future ta$ lia"ility %d( In the e!ent that the protest is denied or upon the lapse of the si$ty#day period prescri"ed in su"paragraph %a(, the ta$ payer may a!ail of the remedies as pro!ided for in Chapter &, 4itle 4*o, Boo3 II of this Code %/mphasis and underlining supplied(
ele!ant thereto, the remedies referred to under Chapter &, 4itle 4*o, Boo3 II of A :o 71'0 or the ;
duces tecum 4he proceedings of the Board shall "e conducted solely for the purpose of ascertaining the facts *ithout necessarily adhering to technical rules applica"le in 5udicial proceedings %c( 4he secretary of the Board shall furnish the o*ner of the property or the person ha!ing legal interest therein and the pro!incial or city assessor *ith a copy of the decision of the Board In case the pro!incial or city assessor concurs in the re!ision or the assessment, it shall "e his duty to notify the o*ner of the property or the person ha!ing legal interest therein of such fact using the form prescri"ed for the purpose 4he o*ner of the property or the person ha!ing legal interest therein or the assessor *ho is not satised *ith the decision of the Board may, *ithin thirty %&0( days after receipt of the decision of said Board, appeal to the Central Board of Assessment Appeals, as here in pro!ided 4he decision of the Central Board shall "e nal and e$ecutory ./C 2&1 /Gect of Appeal on the -ayment of eal -roperty 4a$ F Appeal on assessments of real property made under the pro!isions of this Code shall, in no case, suspend the collection of the corresponding realty ta$es on the property in!ol!ed as assessed "y the pro!incial or city assessor, *ithout pre5udice to su"seuent ad5ustment depending upon the nal outcome of the appeal %/mphasis supplied(
4he a"o!e#uoted pro!isions of A :o 71'0 or the ;
.econdly, *ithin the period prescri"ed "y la*, any o*ner or person ha!ing legal interest in the property not satised *ith the action of the pro!incial, city, or municipal assessor in the assessment of his property may le an appeal *ith the ;BAA of the pro!ince or city concerned, as pro!ided in .ection 22' of A :o 71'0 or the ;
in .ection 22' *hich spea3s of the local assessor+s act of denying the protest led pursuant to .ection2@2 Ho*e!er, applying the a"o!e#cited 5urisprudence in the present case, it is e!ident that petitioner+s failure to comply *ith the mandatory reuirement of payment under protest in accordance *ith .ection 2@2 of the ; of the ules of -rocedure Before the ;BAA Hence, the B4AA simply recognied the importance of the reuirement of ?payment under protest? "efore an appeal may "e entertained, pursuant to .ection 2@2, and in relation *ith .ection2&1 of the same Code as to non#suspension of collection of the realty ta$ pending appeal irst, .ection 20' of A :o 71'0 or the ;
protest the ta$ assessed in compliance *ith .ection 2@2 thereof Accordingly, the CBAA and the C4A /n Banc correctly ruled that real property ta$es should rst "e paid "efore any protest thereon may "e considered It is *ithout a dou"t that such reuirement of ?payment under protest? is a condition sine ua non "efore an appeal may "e entertained 4hus, remanding the case to the ;BAA for further proceedings su"5ect to a full and up#to#date payment, either in cash or surety, of realty ta$ on the su"5ect properties *as proper 4o reiterate, the restriction upon the po*er of courts to impeach ta$ assessment *ithout a prior payment, under protest, of the ta$es assessed is consistent *ith the doctrine that ta$es are the lifel!!" of the nation and as such their collection cannot "e curtailed "y in5unction or any li3e actionK other*ise, the state or, in this case, the local go!ernment unit, shall "e crippled in dispensing the needed ser!ices to the people, and its machinery gra!ely disa"led T#e $i%#& !f l!'l %!ve$*e& +i&s &! '!lle'& &,es "+e *+s&
l-s e +/#el" &! v!i" seve$e e$!si!. T#is '!si"e$&i! is '!sis&e& -i&# &#e S&&e /!li' &! %+$&ee &#e +&!!* !f l!'l %!ve$*e&s " &#e !0e'&ive !f RA N!. 1234 !$ &#e L5C !f 2662 &#& &#e e0! %e+ie " *ei%f+l l!'l +&!!* &! e*/!-e$ &#e* &! '#ieve &#ei$ f+lles& "evel!/*e& s self7$eli& '!**+i&ies " *8e &#e* e9e'&ive /$&e$s i &#e &&i*e& !f &i!l %!ls. A claim for ta$ e$emption, *hether full or partial, does not uestion the authority of local assessor to assess real property ta$, "ut merely raises a uestion of the reasona"leness or correctness of such assessment, *hich reuires compliance *ith .ection 2@2 of the ;
