Title
National Grid Corp. of the Philippines vs. Oliva
Case
G.R. No. 213157
Decision Date
Aug 10, 2016
NGCP challenged Cebu City's real property tax assessments, disputing liability for 2001-2008. CTA ruled NGCP liable only for 2009, citing ownership and franchise terms, and ordered a refund for overpaid taxes.

Case Summary (G.R. No. 213157)

Background of the Case

G.R. No. 213157 and G.R. No. 213558 involve petitions for review filed against the Decision and Resolution issued by the Court of Tax Appeals En Banc (CTA-EB). The preceding decisions stem from the Central Board of Assessment Appeals (CBAA) ruling that NGCP was liable for real property taxes for the year 2009 while dismissing its appeals for the prior years on the basis that the petitions were filed out of time.

Factual Summary

The dispute began when NGCP received three Final Notices of Demand regarding delinquent real property taxes dated September 16, 2009, totaling P2,792,862.41. NGCP paid the demanded amount under protest and later filed a protest against the assessment, which was not acted upon by the City Treasurer's office. Consequently, NGCP appealed to the Local Board of Assessment Appeals (LBAA), which subsequently dismissed the appeal for being out of time, a ruling upheld by the CBAA.

Rulings of the LBAA and CBAA

The LBAA dismissed NGCP's petition on technical grounds, stating it was filed out of the allotted timeframe. However, upon hearing NGCP's subsequent appeal, the CBAA determined that the Local Board's dismissal was based on a technicality without addressing the substantive merit of NGCP's arguments regarding tax liability. Nevertheless, the CBAA maintained that NGCP bore liability for the real property taxes for 2009, asserting that while NGCP had the legal standing to appeal, the applicable provisions of the Local Government Code necessitated their taxation.

Decision of the CTA-EB

The CTA-EB partially granted NGCP's petition, confirming tax liability for 2009 while rejecting claims for the preceding years. It highlighted the "in lieu of all taxes" provision from RA 9511, stipulating that while NGCP is generally required to pay real property taxes, they may be exempt if the properties are used in connection with NGCP's franchise. The court ordered a refund of excess payments made by NGCP.

Legal Framework

Key legal principles underpinning the case involve provisions from the Local Government Code, specifically Sections 216 and 218 regarding real property taxation and exemptions for government-owned or controlled corporations. The implications of Section 9 of RA 9511 also play a critical role, delineating NGCP's tax responsibilities and potential exemptions.

Further Proceedings Ordered

The Supreme Court

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