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    Philippine Fisheries Development Authority vs. CA 169836

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    The Philippine Fisheries Development Authority was assessed real property taxes by the City of Iloilo for the Iloilo Fishing Port Complex that the Authority operated. The Authority argued it was exempt from such taxes as an attached agency of the national government. The Department of Finance and Office of the President ruled the Authority was liable to pay. The Supreme Court ultimately disagreed, finding the Authority was not a government-owned and controlled corporation but a national government instrumentality exempt from local taxes, with the exception of portions of the complex it leased to private entities. The Court also ruled the property could not be sold at public auction to satisfy any tax liability due to its public dominion status.

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    Philippine Fisheries Development Authority vs. CA 169836

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    magen
    776 views1 page
    The Philippine Fisheries Development Authority was assessed real property taxes by the City of Iloilo for the Iloilo Fishing Port Complex that the Authority operated. The Authority argued it was exempt from such taxes as an attached agency of the national government. The Department of Finance and Office of the President ruled the Authority was liable to pay. The Supreme Court ultimately disagreed, finding the Authority was not a government-owned and controlled corporation but a national government instrumentality exempt from local taxes, with the exception of portions of the complex it leased to private entities. The Court also ruled the property could not be sold at public auction to satisfy any tax liability due to its public dominion status.

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    Taxation Law 2

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    The Philippine Fisheries Development Authority was assessed real property taxes by the City of Iloilo for the Iloilo Fishing Port Complex that the Authority operated. The Authority argued it was exempt from such taxes as an attached agency of the national government. The Department of Finance and Office of the President ruled the Authority was liable to pay. The Supreme Court ultimately disagreed, finding the Authority was not a government-owned and controlled corporation but a national government instrumentality exempt from local taxes, with the exception of portions of the complex it leased to private entities. The Court also ruled the property could not be sold at public auction to satisfy any tax liability due to its public dominion status.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    776 views1 page

    Philippine Fisheries Development Authority vs. CA 169836

    Uploaded by

    magen
    The Philippine Fisheries Development Authority was assessed real property taxes by the City of Iloilo for the Iloilo Fishing Port Complex that the Authority operated. The Authority argued it was exempt from such taxes as an attached agency of the national government. The Department of Finance and Office of the President ruled the Authority was liable to pay. The Supreme Court ultimately disagreed, finding the Authority was not a government-owned and controlled corporation but a national government instrumentality exempt from local taxes, with the exception of portions of the complex it leased to private entities. The Court also ruled the property could not be sold at public auction to satisfy any tax liability due to its public dominion status.

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    Philippine Fisheries Development Authority versus Court of Appeals,

    Office of the President, Department of Finance and the City of IloIlo


    G.R. No. 169836, July 31, 2007
    Third Division, Ynares-Santiago, J.

    Facts: The Fisheries Development Authority was created by PD 977 which is an


    attached agency to the Ministry of National Resources, and the Department
    of Agriculture in the advent of PD 977’s amendments. The IloIlo Fishing Port
    Complex (IFPC) was built which was owned by the Republic of the Philippines
    but operated and governed by the Authority, after its construction, the city of
    IloIlo assessed the entire IFPC for Real property taxes for years 1988 and 1989,
    finding around 5MPhp tax liability inclusive of penalties. The Authority filed an
    injunction case with the Regional Trial Court (RTC) where both parties agreed
    to avail administrative proceedings, yet was denied. The Authority then
    elevated the case to the Department of Finance (DOF.) the DOF held that the
    authority is liable to pay real property taxes because it enjoys the beneficial
    use of IFPC. The Office of the president likewise did not rule in favor of the
    Authority, hence the recourse to the Supreme Court.

    Issue(s): Is the Authority liable to pay real property tax to the City of Iloilo? If the
    answer is in the affirmative, may the IFPC be sold at public auction to satisfy
    the tax delinquency?

    Decision: No, the Authority is exempted .The Court rules that the Authority is not
    a GOCC but an instrumentality of the national government which is generally
    exempt from payment of real property tax. However, said exemption does not
    apply to the portions of the IFPC which the Authority leased to private entities.
    With respect to these properties, the Authority is liable to pay real property tax.
    No. The IFPC, being a property of public dominion cannot be sold at public
    auction to satisfy the tax delinquency. (1) It is held that for an entity to be
    considered as a GOCC it must either be organized as a stock or non-stock
    corporation. Here, the Aurthority has a capital stock but is not divided into
    shares of stocks, hence it cannot be considered as a GOCC, rather is a
    national government instrumentality vested with special functions or
    jurisdiction by law, and by express mandate of the Local Government Code,
    local governments cannot impose any kind of tax on national government
    instrumentalities. (2) It is held that a property of public dominion the same
    cannot be subject to execution or foreclosure sale. (Chavez v. Public Estates
    Authority)

    Page 23 of 30

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