TAXATION LAW NAPOCOR v. PROVINCIAL TREASURER OF BENGUET.docx

TAXATION LAW

Bridgeta Fatima Y. Pascua DRAFT NO. 1

NATIONAL POWER CORPORATION v. THE PROVINCIAL TREASURER OF BENGUET, et al. G. R. NO. 209303, 14 Noveme! 201", THIR# #IVISION $Pe!%&'%, J.( #OCTRINE OF THE CASE “If the property being taxed has not been dropped from the assessment roll, taxes must be paid under protest if the exemption from taxation is insisted upon.”  FACTS Natio National nal Poe Poerr !or"o !or"orat ration ion #NP!$ #NP!$ is a go%ern go%ernmen ment&o t&on ned ed and and contro controlle lled d cor"oration created to underta'e t(e de%elo"ment o) "oer generation and "roduction )rom (*droelectric or ot(er sources+ and ma* underta'e t(e construction+ o"eration and mainten maintenance ance o) "oer "oer "lants+ "lants+ dams+ dams+ reser%oi reser%oirs+ rs+ and ot(er or's. or's. It o"erate o"erates s and maintains t(e Binga ,*dro&-lectric ,*dro&-lectric Poer Plant. Res"ondents Res"ondents Pro%incial Treasurer+ Treasurer+ Pro%i Pro%inc ncial ial Assess ssessor or++ unic unici"a i"all Trea Treasur surer er and and unic unici"a i"all Assesso ssessorr o) Itogo Itogon n are re"resentati%es o) t(e "ro%ince o) Benguet+ a local go%ernment unit. Res"ondent issued t(e su/0ect assessment in t(eir o))icial ca"acities.

unici"al Assessor o) Benguet assessed assessed t(e NP! t(e amount o) ₱ 2+34+5.56 real real "ro"ert* "ro"ert* ta7. NP! c(allen c(allenged ged /e)ore /e)ore t(e Local Local Board Board o) Assess Assessment ment A""eals A""eals #LBAA$ t(e legalit* o) t(e assessment and t(e aut(orit* o) t(e res"ondents to assess and collect real "ro"ert* ta7es )rom it (en its "ro"erties are e7em"t "ursuant to 8ection 293 #/$ and #c$ o) Local :o%ernment !ode. Res"ondents alleged t(at NP!;s "ro"erties ere not e7em"t )rom ta7 since t(e "ro"erties ere classi)ied in t(eir ta7 declarations as ui"ment.= T(ere as no e%idence t(at t(e "ro"erties ere /eing used )or generation and transmission o)  electric "oer. LBAA de)erred t(e "roceedings u"on NP!;s "a*ment under "rotest o)  t(e assessed amount+ or u"on )iling o) a suret* /ond to co%er t(e dis"uted amount o)  ta7. NP! )iled a "etition )or re%ie /e)ore t(e !entral Board o) Assessment A""eals #!BAA$ claiming t(at "a*ment under "rotest as not re>uired re>uired /e)ore it could c(allenge t(e aut(orit* o) res"ondents to assess ta7 on ta7 e7em"t "ro"erties /e)ore t(e LBAA. !BAA dismissed t(e a""eal )or /eing )iled out o) time. T(e !BAA+ in an Order denied t(e NP!;s motion )or reconsideration. It ruled t(at it is incum/ent u"on t(e NP! to "a* under "rotest /e)ore t(e LBAA could entertain its a""eal as "ro%ided under L:!. NP! a""ealed to !TA En Banc  /*  /* )iling a Petition )or Re%ie. T(e T(e !TA En Banc  denied  denied t(e same )or lac' o) merit.

ISSUE

Does NP! need to "a* t(e assessed amount under "rotest in claiming )or an e7ce"tion )rom t(e "a*ment o) real "ro"ert* ta7?

RULING Yes. 8ettled is t(e rule t(at s(ould t(e ta7"a*er@real "ro"ert* oner >uestion t(e e7cessi%eness or reasona/leness o) t(e assessment+ L:! directs t(at t(e ta7"a*er  s(ould )irst "a* t(e ta7 due /e)ore (is "rotest can /e entertained. A claim )or e7em"tion )rom t(e "a*ment o) real "ro"ert* ta7es does not actuall* >uestion t(e assessor;s aut(orit* to assess and collect suc( ta7es+ /ut "ertains to t(e reasona/leness or  correctness o) t(e assessment /* t(e local assessor. -%er* "erson (o s(all claim e7em"tion )rom "a*ment o) real "ro"ert* ta7es im"osed u"on said "ro"ert* s(all )ile it( t(e "ro%incial+ cit* or munici"al assessor su))icient documentar* e%idence in su""ort )or suc( claim. T(e /urden o) "ro%ing is u"on (om t(e su/0ect real "ro"ert* is declared. I) t(e "ro"ert* /eing ta7ed (as not /een dro""ed )rom t(e assessment roll+ ta7es must /e "aid under "rotest i) t(e e7em"tion )rom ta7ation is insisted u"on. NP!;s )ailure to com"l* it( t(e mandator* re>uirement o) "a*ment under "rotest in accordance it( 8ection 242 o) t(e L:! as )atal to its a""eal.