Case Digest (G.R. No. L-1281) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In BA-Lepanto Condominium Corporation v. Luz R. Yamane, the petitioner, Luz Yamane, in her capacity as City Treasurer of Makati City, issued on December 14, 1998 a Notice of Assessment directing the respondent condominium corporation to pay ₱1,601,013.77 as business taxes for 1995–1997. The Corporation, organized under the Condominium Act (Republic Act No. 4726) to hold title and manage common areas of the BA-Lepanto Condominium, protested its liability on February 12, 1999, asserting it was not engaged in profit‐making trade. The City Treasurer denied the protest on March 4, 1999. The Corporation appealed to the Regional Trial Court (RTC) of Makati, which on March 1, 2000, dismissed the appeal, treating the collection of members’ assessments as a business venture. The respondent then filed a petition for review under Rule 42 with the Court of Appeals, initially dismissed for lack of jurisdiction but reinstated upon motion, and on June 7, 2002, the CA reversed the RTC, ruling no Case Digest (G.R. No. L-1281) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Parties and context
- Petitioner Luz R. Yamane, City Treasurer of Makati, issued a Notice of Assessment (14 Dec 1998) against respondent BA-Lepanto Condominium Corporation for alleged unpaid business taxes, surcharges, and interest totaling ₱1,601,013.77 (1995–1997).
- The Notice failed to specify the exact provision of the Makati Revenue Code or Local Government Code on which the tax assessment was based.
- Procedural history
- The Corporation filed a written protest (12 Feb 1999); the City Treasurer denied it (4 Mar 1999).
- The Corporation appealed to the RTC Makati (Civil Case No. 99-748); RTC Branch 57 dismissed the appeal for lack of merit (1 Mar 2000).
- The Corporation filed a Rule 42 petition for review with the Court of Appeals; initially dismissed for wrong mode of appeal, then reinstated (25 Jul 2000).
- On 7 June 2002, the Court of Appeals reversed the RTC, holding the Corporation not liable for business taxes.
- The City Treasurer filed a Rule 45 petition for review with the SC, raising (a) a procedural issue on proper mode of appeal and (b) a substantive issue on the liability of condominium corporations to business taxes.
Issues:
- Procedural: Whether an RTC’s review of a denial of tax protest under Section 195 of the Local Government Code is an exercise of original or appellate jurisdiction, thereby determining the proper mode of appeal (Rule 41 vs. Rule 42).
- Substantive: Whether a condominium corporation falls within the definition of “business” subject to local business taxes under the Local Government Code and the Makati Revenue Code.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)