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    City of Pasig v. Republic

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    Aiza Ordoño
    The City of Pasig sent notices of tax delinquency to MPLDC for unpaid real property taxes covering the period from 1979 to 2001 for two parcels of land owned by MPLDC. MPLDC claimed the properties were exempt from taxes starting in 1987 because its registered owner had voluntarily surrendered the properties to PCGG as part of the recovered ill-gotten wealth of the former President Marcos. The Supreme Court ruled that while the Republic of the Philippines now owns the properties due to the voluntary surrender, it is still subject to real property taxes for portions of the properties leased to private entities, as the beneficial use of those portions was granted to taxable persons. The portions not leased remain tax-exempt.

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    City of Pasig v. Republic

    Uploaded by

    Aiza Ordoño
    310 views1 page
    The City of Pasig sent notices of tax delinquency to MPLDC for unpaid real property taxes covering the period from 1979 to 2001 for two parcels of land owned by MPLDC. MPLDC claimed the properties were exempt from taxes starting in 1987 because its registered owner had voluntarily surrendered the properties to PCGG as part of the recovered ill-gotten wealth of the former President Marcos. The Supreme Court ruled that while the Republic of the Philippines now owns the properties due to the voluntary surrender, it is still subject to real property taxes for portions of the properties leased to private entities, as the beneficial use of those portions was granted to taxable persons. The portions not leased remain tax-exempt.

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    Digested case in taxation

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    The City of Pasig sent notices of tax delinquency to MPLDC for unpaid real property taxes covering the period from 1979 to 2001 for two parcels of land owned by MPLDC. MPLDC claimed the properties were exempt from taxes starting in 1987 because its registered owner had voluntarily surrendered the properties to PCGG as part of the recovered ill-gotten wealth of the former President Marcos. The Supreme Court ruled that while the Republic of the Philippines now owns the properties due to the voluntary surrender, it is still subject to real property taxes for portions of the properties leased to private entities, as the beneficial use of those portions was granted to taxable persons. The portions not leased remain tax-exempt.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    310 views1 page

    City of Pasig v. Republic

    Uploaded by

    Aiza Ordoño
    The City of Pasig sent notices of tax delinquency to MPLDC for unpaid real property taxes covering the period from 1979 to 2001 for two parcels of land owned by MPLDC. MPLDC claimed the properties were exempt from taxes starting in 1987 because its registered owner had voluntarily surrendered the properties to PCGG as part of the recovered ill-gotten wealth of the former President Marcos. The Supreme Court ruled that while the Republic of the Philippines now owns the properties due to the voluntary surrender, it is still subject to real property taxes for portions of the properties leased to private entities, as the beneficial use of those portions was granted to taxable persons. The portions not leased remain tax-exempt.

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    © All Rights Reserved
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    CITY OF PASIG v.

    REPUBLIC OF THE PHILIPPINES


    G.R. No. 185023; August 24, 2011

    FACTS:
    Mid-Pasig Land Development Corporation (MPLDC) owned two parcels of land, the payanig properties, with
    a total area of 18.4891 hectares, situated in Pasig City. Portions of the properties are leased to different
    business establishments. In 1986, the registered owner of MPLDC, Campos, voluntarily surrendered MPLDC to
    the Republic of the Philippines. On 30 September 2002, the Pasig City Assessor's Office sent MPLDC two
    notices of tax delinquency for its failure to pay real property tax on the properties for the period 1979 to 2001
    totaling P256,858,555.86. In a letter dated 29 October 2002, Independent Realty Corporation informed the
    Pasig City Treasurer that the tax for the period 1979 to 1986 had been paid, and that the properties were
    exempt from tax beginning 1987 claiming that, upon the voluntary surrender Campos of the payanig
    properties to PCGG, there was a clear admission that these properties were part of the ill-gotten wealth of
    former President Marcos. As such, there was already constructive reconveyance to the State, which
    immediately placed these reconveyed properties under the control and stewardship of the PCGG as
    representative of the Republic of the Philippines. Under such special circumstance, these voluntary
    surrendered properties had already belonged to the State.

    ISSUE:
    Whether or not the subject real estate voluntary surrendered by its former owner, Campos, to the State are
    exempt from real property tax.

    HELD:
    NO. Even as the Republic of the Philippines is now the owner of the properties in view of the voluntary
    surrender of MPLDC by its former registered owner, Campos, to the State, such transfer does not prevent a
    third party with a better right from claiming such properties in the proper forum. In the meantime, the
    Republic of the Philippines is the presumptive owner of the properties for taxation purposes. Section 234(a) of
    Republic Act No. 7160 states that properties owned by the Republic of the Philippines are exempt from real
    property tax "except when the beneficial use thereof has been granted, for consideration or otherwise, to a
    taxable person." Thus, the portions of the properties not leased to taxable entities are exempt from real
    estate tax while the portions of the properties leased to taxable entities are subject to real estate tax. The law
    imposes the liability to pay real estate tax on the Republic of the Philippines for the portions of the properties
    leased to taxable entities. It is, of course, assumed that the Republic of the Philippines passes on the real
    estate tax as part of the rent to the lessees.

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