Case Digest (G.R. No. 186242)
Facts:
In Government Service Insurance System v. City Treasurer and City Assessor of the City of Manila, G.R. No. 186242, decided December 23, 2009, petitioner GSIS owned two parcels in Manila: one at Katigbak 25th St., Bonifacio Drive (leased since November 1991 to Manila Hotel Corporation), and another at Concepcion corner Arroceros Streets (partly occupied by GSIS and the Metropolitan Trial Court). In September 2002, the City Treasurer notified GSIS of unpaid real property taxes for 1992–2002 amounting to ₱54,826,599.37 (Katigbak) and ₱48,498,917.01 (Concepcion-Arroceros), warning of public auction. GSIS invoked its claimed exemption under RA 8291 and filed a petition for certiorari and prohibition in Manila RTC, amending to show the lease arrangement. The RTC (Branch 49) dismissed the petition on November 15, 2007, and denied reconsideration on January 7, 2009. GSIS sought review under Rule 45, raising pure questions of law.Issues:
- Is GSIS exempt from payment of real property ta
Case Digest (G.R. No. 186242)
Facts:
- Ownership and occupation of subject properties
- GSIS owned two parcels in Manila:
- Katigbak 25th St., Bonifacio Drive (Katigbak property), leased since November 1991 to Manila Hotel Corporation (MHC).
- Concepcion cor. Arroceros Sts. (Concepcion-Arroceros property), title originally in GSIS, transferred to the Supreme Court by Proclamation No. 835 (April 27, 2005); occupied by GSIS and the Metropolitan Trial Court of Manila.
- Under the lease agreement, MHC contractually undertook to pay any real property taxes imposed on the Katigbak property.
- Assessment and administrative actions
- On September 13, 2002, the City Treasurer of Manila notified GSIS of unpaid real property taxes for 1992–2002:
- PhP 54,826,599.37 on the Katigbak property.
- PhP 48,498,917.01 on the Concepcion-Arroceros property.
- On September 16, 2002, separate Notices of Realty Tax Delinquency were issued, warning of seizure and sale. On October 8, 2002, GSIS, through counsel, asserted exemption under RA 8291. On October 10, 2002, GSIS filed a petition for certiorari and prohibition with prayer for injunctive relief before RTC Branch 49, Manila, later amended to highlight the Katigbak lease to MHC and partial occupation of the Concepcion-Arroceros property.
- Judicial proceedings below
- RTC Branch 49 issued a Decision on November 15, 2007 dismissing GSIS’s petition for lack of merit and upholding the tax assessments as valid.
- GSIS’s motion for reconsideration was denied by RTC Order on January 7, 2009. GSIS then filed the instant Rule 45 petition raising pure questions of law.
Issues:
- Charter exemption
- Whether GSIS is exempt from payment of real property taxes for 1992–2002 under its charters (PD 1146 and RA 8291), in view of the Local Government Code (RA 7160) withdrawal of prior exemptions.
- Leased property
- Whether GSIS is exempt from payment of real property taxes on the Katigbak property leased to MHC (a taxable entity).
- Levy and tax sale
- Whether GSIS’s real properties are exempt from warrants of levy and from public auction sale for non-payment of real property taxes.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)