MAYON ENVIRONS TOURISM CIRCUIT PROVINCE OF ALBAY MS. DOROTHY F. COLLE PIT MANAGER - ALBAY.
3 Napocor vs Albay
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Transcript of 3 Napocor vs Albay
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G.R. No. 87479 June 4, 1990
NATIONAL POWER CORPORATION, petitioner,vs.
THE PROVINCE OF ALBAY, ALBAY GOVERNOR ROEO R. !ALALIA, "n# ALBAY PROVINCIALTREA!$RER AB$N%IO . N$&E', respondents.
Romulo L. Ricafort and Jesus R. Cornago for respondents.
!ARIENTO, J.:
The National Power Corporation (NAPOCOR) questions the power of the provincial governent of Al!a" to collect real propert"
ta#es on its properties located at Tiwi, Al!a", aassed !etween $une %%, %&' up to arch %*, %&'+.
t appears that on arch % and %-, %&'&, the respondents caused the pu!lication of a notice of auction sale involving the
properties of NAPOCOR and the Philippine eotheral nc. consisting of !uildings, achines, and siilar iproveents standing on
their o/ces at Tiwi, Al!a". The aounts to !e reali0ed fro this advertised auction sale are supposed to !e applied to the ta#
delinquencies claied, as and for, as we said, real propert" ta#es. The !ac1 ta#es NAPOCOR has supposedl" accuulated were
coputed at P2%,'-,%'.+3.
NAPOCOR opposed the sale, interposing in support of its non4lia!ilit" Resolution No. %+4'+, of the 5iscal ncentives Review 6oard
(5R6), which provides as follows7
68 T R89O:;8 R89O:;8
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9ection 2. A 5iscal ncentives Review 6oard is here!" created for the purpose of
deterining what su!sidies and ta# e#eptions should !e odi?ed, withdrawn,
revo1ed or suspended, which shall !e coposed of the following o/cials7
Chairan 4 9ecretar" of 5inance
e!ers 4 9ecretar" of ndustr"
4
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e) forulate and su!it to the President for approval, a coplete s"ste for the
grant of su!sidies to deserving !ene?ciaries, in lieu of or in co!ination with the
restoration of ta# and dut" e#eptions or preferential treatent in ta#ation,
indicating the source of funding therefor, eligi!le !ene?ciaries and the ters and
conditions for the grant thereof ta1ing into consideration the international
coitents of the Philippines and the necessar" precautions such that the grant
of su!sidies does not !ecoe the !asis for countervailing action. 10
(') On Octo!er -, %&'+, the O/ce of the President issued the eorandu, con?ring
NAPOCORHs ta# e#eption aforesaid. 11
The provincial governent of Al!a" now defends the auction sale in question on the theor" that
the various 5R6 issuances constitute an undue delegation of the ta#ing Power and hence, null
and void, under the Constitution. t is also contended that, insofar as 8#ecutive Order No. &B
authori0es the 5R6 to grant ta# e#eptions, the sae is of no force and eect under the
constitutional provision allowing the legislature alone to accord ta# e#eption privileges.
t is to !e pointed out that under Presidential
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grants ta# e#eptions (through the 5R6) !eginning
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Philippines to !e e#pended e#clusivel" for sta!ili0ing the 9pecial 8ducation 5und in
unicipalities, cities and provinces in accordance with the provisions of 9ection
seven of R.A. No. -+.
(2) Collections in the cities7 9i#t" per cent shall !e retained !" the cit"G and fort"
per cent shall !e reitted to the Treasurer of the Philippines to !e e#pended
e#clusivel" for sta!ili0ing the special education fund in unicipalities, cities and
provinces as provided under 9ection + of R.A. No. -+.
=owever, an" increase in the shares of provinces, cities and
unicipalities fro said additional ta# accruing to their respective
local school !oards coencing with ?scal "ear %&+B4+ over what
has !een actuall" reali0ed during the ?scal "ear %&+%4+2 which, for
purposes of this Code, shall reain as the !ased "ear, shall !e
divided equall" !etween the general fund and the special education
fund of the local governent units concerned. The 9ecretar" of
5inance a", however, at his discretion, increase to not ore than
sevent"4?ve per cent the aount that shall accrue annuall" to the
local general fund.
(c) The proceeds of all delinquent ta#es and penalties, as well as the incoe
reali0ed fro the use, lease or other disposition of real propert" acquired !" the
province or cit" at a pu!lic auction in accordance with the provisions of this Code,
and the proceeds of the sale of the delinquent real propert" or, of the redeption
thereof shall accrue to the province, cit" or unicipalit" in the sae anner and
proportion as if the ta# or ta#es had !een paid in regular course.
(d) The proceeds of the additional real propert" ta# on dle private lands shall
accrue to the respective general funds of the province, cit" and unicipalit"where the land su!@ect to the ta# is situated. 17
To all intents and purposes, real propert" ta#es are funds ta1en !" the 9tate with one hand and
given to the other. n no easure can the overnent !e said to have lost an"thing.
As a rule ?nall", clais of ta# e#eption are construed strongl" against the claiant. 18The"
ust also !e shown to e#ist clearl" and categoricall", and supported !" clear legal provisions.19
Ta#es are the life!lood of the nation. (0Their priar" purpose is to generate funds for the 9tate
to ?nance the needs of the citi0enr" and to advance the coon weal.
J=8R85OR8, the petition is