Case Digest (G.R. No. 80007) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In National Power Corporation v. Province of Albay, G.R. No. 87479, decided June 4, 1990, the National Power Corporation (NAPOCOR) challenged the authority of the Province of Albay, its Governor Romeo R. Salalima, and Provincial Treasurer Abundio M. Nunez to levy and collect real property taxes on NAPOCOR’s properties in Tiwi, Albay, purportedly accruing from June 11, 1984 to March 10, 1987, in the total amount of P214,845,184.76. On March 14–15, 1989, the provincial government caused the publication of notices of auction for machinery, buildings, and other improvements standing on NAPOCOR’s premises to satisfy these alleged delinquencies. NAPOCOR sought injunctive relief from the Supreme Court, presenting FIRB Resolution No. 17-87 (restoring tax and duty exemptions effective March 10, 1987) and an Executive Secretary’s memorandum confirming it. A Temporary Restraining Order was issued on March 10, 1989, but was not served in time to halt the sale, and the Province of Albay beca Case Digest (G.R. No. 80007) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Parties and Subject Matter
- Petitioner: National Power Corporation (NAPOCOR), a government-owned corporation chartered under Commonwealth Act No. 120, amending powers and exemptions under R.A. No. 6395.
- Respondents: Province of Albay, Governor Romeo R. Salalima, and Albay Provincial Treasurer Abundio M. Nunez.
- Subject: Collection of real property taxes on NAPOCOR’s properties in Tiwi, Albay for the period June 11, 1984 to March 10, 1987 and the consequent auction sale of machines, buildings, and improvements for alleged delinquencies totaling P214,845,184.76.
- Chronology and Procedural History
- June 11, 1984: Promulgation of PD No. 1931 withdrawing all GOCC tax exemptions.
- FIRB Resolutions:
- No. 10-85 restoring exemptions (June 11, 1984–June 30, 1985).
- No. 1-86 granting indefinite exemptions (July 1, 1985 onward).
- No. 17-87 restoring exemptions until March 10, 1987.
- December 17, 1986: EO No. 93 withdraws all tax incentives but authorizes FIRB to restore them prospectively.
- October 5, 1987: Presidential Memorandum confirms FIRB Res. No. 17-87.
- March 14–15, 1989: Respondents publish auction sale notices.
- March 10, 1989: Supreme Court issues TRO to stay sale, but it does not reach respondents in time; auction proceeds March 30, 1989 with Province of Albay as highest bidder.
- Statutory and Constitutional Provisions
- C.A. No. 120 § 13 (as amended by R.A. 6395): Declares NAPOCOR tax-exempt.
- PD No. 776 (Aug. 24, 1975): Creates FIRB with power to recommend changes to tax exemptions.
- PD No. 1931 (June 11, 1984): Withdraws all GOCC tax exemptions.
- EO No. 93 (Dec. 17, 1986): Withdraws all incentives but empowers FIRB to restore exemptions and impose conditions.
- 1973 and 1987 Constitutions: Only the legislature may grant or revoke tax exemptions (art. VIII, sec. 17[4]–Const. 1973; art. VI, sec. 28[4]–Const. 1987).
- PD No. 464 (Real Property Tax Code) §§ 86–87: Governs levy and distribution of real property taxes by local government units.
Issues:
- Validity of FIRB Actions
- Whether FIRB Resolutions Nos. 10-85 and 1-86 validly restored NAPOCOR’s tax exemptions from June 11, 1984 onward.
- Whether FIRB Resolution No. 17-87 and its confirmation by the President validly restored exemptions effective March 10, 1987.
- Authority and Delegation
- Whether FIRB’s grant or restoration of exemptions improperly usurped the legislature’s exclusive power to grant or revoke tax exemptions under the Constitution.
- Whether EO No. 93 effected an unconstitutional delegation of legislative power in authorizing FIRB to restore tax exemptions.
- Liability for Real Property Taxes
- Whether NAPOCOR is liable for real property taxes accruing between June 11, 1984 (PD 1931) and March 10, 1987 (effective date of FIRB Res. No. 17-87).
- Whether the auction sale of NAPOCOR’s properties for tax delinquencies is valid.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)