taxation - 7 tax remedies under lgc

8/3/2019 Taxation - 7 Tax Remedies under LGC

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TAXATION

Part SEVEN

TAX REMEDIES

REMEDIES UNDER THE LOCAL

GOVERNMENT CODE

Local Taxes in General

a. Assessment / Collection

ACCRUAL / TAX PERIOD / MANNER OF PAYMENT /SURCHARGE & PENALTIES

Sec 165 to 171, LGC, supra

COLLECTION OF THE TAX


ASSESSMENT OF DEFICIENCY / DELINQUENT TAX

Sec 194, LGC, supra

BLGF Ruling (June 13, 2006), supra

California Mfg Co. v. City of Las Pias- The requirement for an assessment notice to be valid is a statementof the nature of the tax, fee or charge, the amt of deficiency, thesurcharges, interests & penalties.- W/in 60d fr receipt of assessment, aggrieved taxpayer may file aprotest w/ local treasurer in case of local tax assessments and w/LBAA in case of real prop tax assessments.

b. Taxpayers Remedies

PROTESTING AN ASSESSMENT

Sec 195, LGC, supra

PROTEST TO THE CITY / MUNICIPAL TREASURER

California Mfg Co. v. City of Las Pias, supra

San Juan v. CastroMandamus doesnt lie to compel City Treasurer to accept as fullcompliance of tax payment w/c in his reasoning and assessment isdeficient & incorrect.

APPEAL TO THE REGULAR COURT OF COMPETENTJURISDICTION

CLAIM FOR REFUND / TAX CREDIT- period: 2 yrs- written claim

Sec 196, LGC, supra

CONTESTING THE VALIDITY OF A NEW TAX ORDINANCE- when a taxpayer can contest the legality of a tax ordinance:

30d fr effectivity- appeal to Sec of Justice: 60d to decide- appeal to court of competent jurisdiction


Figuerres v. CA- RA 7160 (LGC) provides that an ordinance levying taxes, fees,charges shall not be enacted w/o any prior public hearing conductedfor the purpose.- Lack of public hearing is a negative allegation to w/c the partyasserting has the burden of proof.- An ordinance imposing real prop taxes must be posted / publishedas required by LGC Sec 188.

- Ordinances w/c fix assessment levels, being in the nature of a taxordinance, Sec 188 likewise applies.- Ordinance w/c fixes assessment levels applicable to the diff classesof real prop in an LGU and imposing penal sanctions for violations

thereof shld be published in full.- In the absence of proof that the ordinances werent enacted inaccordance w/ such regulations, said ordinances must be presumedto have been enacted in accordance w/ such regulations.

Hagonoy Market Vendors Assn v. Munipality of Hagonoy, supra

- An appeal of a tax ordinance / revenue measure shld be made toSec of Justice w/in 30d fr effectivity of ordinance and even during itspendency, the effectivity of assailed ordinance shall not besuspended.- The timeframe fixed by law for parties to avail of their legal remediesbefore competent courts isnt a mere technicality that can be easilybrushed aside. The periods stated in Sec 187 of LGC are mandatory.- Collection of revenues by govt is of paramount importance. Thefunds for operation of agencies & provision of basic services arelargely derived fr revenues & collections. Thus, its essential that thevalidity of revenue measures isnt left uncertain for considerablelength of time. Hence, the law provided a time limit for an aggrievedparty to assail legality of revenue measures & tax ordinances.- Public hearings are conducted by legislative bodies to allowinterested parties to ventilate their views on proposed law / ordinance.These views, however, arent binding on legislative body & it isntcompelled by law to adopt the same. Sanggunian members areelected by people to make laws that will promote general interest of

constituents. They are mandated to use discretion & best judgment inserving. Parties who participate in public hearings shouldnt expectthat their views would be patronized by their lawmakers.

Coca-cola Phils Inc v. City of Manila- Failure to follow the procedure in enactment of tax measuresrenders the same null & void. Failure to follow the procedure inenactment of tax measures as mandated by Sec 188 LGC, in thatthey failed to publish Tax Ordinance for 3 consecutive days innewspaper of local circulation renders the same null & void.- If an order or law sought to be amended is invalid, then it doesntlegally exist, there shld be no occasion or need to amend it.

Real Property Taxes

a. Assessment / Collection

ASSESSMENT OF LAND VALUE


COLLECTION OF REAL PROPERTY TAX


PAYMENT IN INSTALLMENTS

CONDONATION OF TAX


REDUCTION / DISCOUNT

REMEDIES OF GOVERNMENT TO COLLECT


Sps Ramon & Rosita Tan v. Bantegui- Auction sale of real prop for collection of delinquent taxes is inpersonam, not in rem. Although sufficient in proceedings in rem,mere notice by publication will not satisfy requirements of proceedingsin personam. It is still incumbent upon city treas to send the noticedirectly to taxpayer the registered owner in order to protect thelatters interests. Although preceded by proper advertisement andpublication, an auction sale is void absent an actual notice to adelinquent taxpayer.- Notice of sale to the delinquent landowners and to the public, ingeneral, is an essential and indispensable requirement of law, non-fulfillment of w/c vitiates the sale.

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TAXATION

b. Taxpayers Remedies

CONTESTING THE ASSESSMENT OF LAND VALUE

Sec 226, LGCLocal Board of Assessment Appeals.

- Owner / person w/ legal interest in prop whos not satisfied w/action of provincial, city, municipal assessor in assessment ofhis prop may, w/in 60d fr date of receipt of written notice ofassessment, appeal to Board of Assessment Appeals of province

/ city by filing- petition under oath- copies of tax declarations- affidavits / docs in support of appeal

Sec 227, LGCOrganization, Powers, Duties, and Functions of the Local Boardof Assessment Appeals.a. Board of Assessment Appeals of province / city is composedof

- Registrar of Deeds as Chairman- provincial / city prosecutor AND engineer as members, inex officio capacity w/o addl compensation

b. Chairman has power to designate any employee of province /city to serve as secretary also w/o addl compensation.c. Chairman & members assume positions w/o need of furtherappointment / special designation immediately upon effectivity ofCode. They take oath / affirmation of ofc.

d.- Where theres no provincial / city engineer, the district engineerserves as member of Board.- In absence of Registrar of Deeds, or prosecutor, or provincial /city / district engineer, the persons performing their duties,whether in acting capacity or as OIC, automatically becomesChairman or member, respectively, of Board.

Sec 228, LGCMeetings and Expenses of the Local Board of AssessmentAppeals.a.- Board of Assessment appeals of province / city meets once amo AND as often as necessary for prompt disposition ofappealed cases.- No member of Board is entitled to per diems / travelingexpenses for attendance in Board mtgs, except when conducting

ocular inspection in connection w/ case under appeal.b.- Expenses of Board are charged against gen fund of province /city.- Sanggunian appropriates funds to enable Board to operate.

Sec 229, LGCAction by the Local Board of Assessment appeals.a.- Board decides appeal w/in 120d fr date of receipt of appeal.- Board, after hearing, renders decision based on substantialevidence or relevant evidence on record as reasonable mindmight accept as adequate to support conclusion.b.- In appellate jurisdiction, Board has power to

- summon witnesses- administer oaths- conduct ocular inspection

- take depositions- issue subpoena & subpoena duces tecum

- Proceedings are conducted solely for ascertaining facts w/onecessarily adhering to technical rules in judicial proceedings.c.- Secretary of Board shall furnish owner of prop or person w/legal interest AND provincial / city assessor w/ copy of decisionof Board.- In case assessor concurs in revision or the assessment, its hisduty to notify owner of prop or person w/ legal interest of suchfact using form prescribed.- Owner or person w/ legal interest OR assessor who isntsatisfied w/ decision of Board may, w/in 30d after receipt ofdecision of Board, appeal to Central Board of AssessmentAppeals. Decision of CBAA is final & executory.

Sec 230, LGCCentral Board of Assessment appeals.- CBAA is composed of Chairman AND 2 members

- appointed by President- serve for term of 7y w/o reappointment

- Of those first appointed, chairman holds ofc for 7y, one memberfor 5y, and the other for 3y.

- Appointment to vacancy is only for unexpired portion of term ofpredecessor.

- In no case shall any member be appointed in temporary / actingcapacity.- Chairman & members shall be

- Filipino citizens- at least 40y old at time of appointment- members of Bar or CPAs for at least 10y immediatelypreceding appointment

- Chairman has salary grade equivalent to rank of Director IIIunder Salary Standardization Law exclusive of allowances &other emoluments. Members have salary grade equivalent torank of Director II.- Board has appellate jurisdiction over all assessment casesdecided by LBAA.- There are Hearing Officers appointed by CBAA pursuant to civilservice laws, rules

- one ea for Luzon, Visayas, Mindanao- ofc in Manila, Cebu City, Cagayan de Oro City- term of 6y w/o reappointment until successors are

appointed & qualified- same qualifications as that of Judges of Municipal TrialCourts- salary grade equivalent to rank of Director I- shall try & rcv evidences on appealed assessment casesas directed by Board

- CBAA may- establish & organize staffs, offices, units- prescribe titles, functions & duties of members- adopt own rules

- Unless otherwise provided, annual appropriations for CBAA areincluded in annual budget of DoF in General Appropriations Act.

Sec 231, LGCEffect of appeal on the Payment of Real Property Tax.- Appeal on assessments of real prop shall, in no case suspendcollection of realty taxes as assessed by provincial / cityassessor, w/o prejudice to subsequent adjustment dependingupon outcome of appeal.

APPEAL TO THE LOCAL BOARD OF ASSESSMENT APPEALS(LBAA)

Systems Plus Computer College v. Caloocan City- Remedy of appeal to LBAA is available fr adverse ruling / action ofprovincial, city, municipal assessor in assessment of prop.- The determination by City Assessor w/ regard to taxability of subjectreal prop is subject to appeal before LBAA.- Doctrine of exhaustion of administrative remedies: Before seekingthe intervention of courts, its a precondition that petitioner shld firstavail of all means afforded by administrative processes.

APPEAL TO THE CENTRAL BOARD OF ASSESSMENT APPEALS(CBAA)

Caltex v. CBAA, supra- Central Board of Assessment Appeals, and not the CTA, hasappellate jurisdiction over decisions of local boards of assessmentappeals and is in same category as Tax Court.- Real Prop Tax Code provides that decision of CBAA becomes final& executory after 15d fr receipt of decision. W/in that period,reconsideration may be filed. Code doesnt provide for review of theBoards decision by this Court.- The only remedy available for seeking a review by this Court of thedecision of CBAA is the special civil action of certiorari.

Chavez v. Ongpin, supra- PD 464 furnishes the procedure by w/c a tax assessment may bequestioned.

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- W/in 60d fr date of receipt of written notice of assessment, anyowner who doubts assessment of his prop may appeal to Local Boardof Assessment Appeals. In case owner / administrator of prop orassessor isnt satisfied w/ decision of LBAA, he may, w/in 30d fr

receipt of decision, appeal to Central Board of Assessment Appeals.The decision of CBAA becomes final & executory after lapse of 15d frdate of receipt of decision.

Cagayan Robina Sugar Milling v. CAWhere owner / administrator of prop OR assessor isnt satisfied w/

decision of LBAA, he may, w/in 30d fr receipt of decision, appeal toCBAA. Perfection of appeal w/in period therefor is both mandatoryand jurisdictional, and that failing in this regard renders decision final& executory.

PAYMENT OF REAL PROPERTY TAX UNDER PROTEST

Sec 252, LGC, supra

Manila Electric Co. v. BarlisPayment of tax assessed under protest is a condition sine qua nonbefore trial court could assume jurisdiction over the petition and forfailure to do so, the RTC has no jurisdiction to entertain it.

Emerlinda Talento v. Escalada & Petron Corp- The question whether collection of taxes may be suspended byreason of filing of an appeal & posting of surety bond is a purequestion of law w/c shld be appealed to SC by petition for rvw on

certiorari under R45 and not thru special civil action of certiorari underR65.- An exception to the rule that appeal shall not suspend the collectionof realty taxes is where taxpayer has shown a clear & unmistakableright to refuse or to hold in abeyance the payment of taxes.

FILE PROTEST WITH THE LOCAL TREASURER

PROTEST TO BE FILED WITH THE LBAA: WITHIN 60 DAYSFROM RECEIPT OF ASSESSMENT; 120 DAYS TO DECIDE

City Government of Quezon City v. Bayan TelecommunicationsInc, supra- Since taxpayers real props were already levied upon on acct of itsnonpayment of real estate taxes, an appeal to LBAA is not a speedy &adequate remedy.- An appeal to LBAA required prior payment under protest. If amountis difficult to raise, appeal to LBAA may not be considered as plain,speedy, adequate remedy

California Mfg Co. v. City of Las Pias, supra

National Power Corp v. CBAA, LBAA of La Union- Law provides that, when owner / person w/ legal interest in prop whoisnt satisfied w/ assessment, may file appeal w/in 60d to LBAA.- Under the Rules of Procedure before LBAA, its also provided thatowner, administrator or person who isnt satisfied w/ assessment ofhis prop may, w/in 60d fr date of receipt of written notice ofassessment, appeal to LBAA (Sec 2(a), Rule V).- Likewise, Sec 4 of same Rules provides that "any action ofProvincial, City, Municipal Assessor in assessment of real prop, andany action / inaction of Provincial / City Treasurer, or MunicipalTreasurer, on taxpayer's claim for refund of taxes pd under protest, oron claims for reduction / adjustment of taxes pd or for tax credits onillegally / erroneously collected realty taxes and such other real prop

taxes / special levies under LGC", may be appealed to LBAA.- An appeal to LBAA must necessarily involve questioning of thecorrectness of assessment of prop.- An assessment is defined as "the act / process of determining valueof prop, or proportion thereof subject to tax, incl discovery, listing,classification, appraisal of prop" (Sec 199(f), LGC)

APPEAL TO THE CBAA: WITHIN 30 DAYS FROM RECEIPT OFDENIAL

APPEAL TO THE CTA

RA 9282 amending RA 1125* Refer to NIRC Remedies.

APPEAL TO THE SC

CLAIM FOR REFUND OF REAL PROPERTY TAX PAID

Sec 253, LGCRepayment of Excessive Collections.- When assessment of basic real prop tax, or other tax under thisTitle, is found to be illegal / erroneous AND tax is accordingly

reduced / adjusted, taxpayer may file written claim for refund /credit for taxes & interests w/ provincial / city treas w/in 2y fr date

the taxpayer is entitled to reduction / adjustment.- Treas shall decide claim for refund / credit w/in 60d fr receiptthereof.- If claim is denied, taxpayer may avail of remedies in Ch 3, TitleII, Book II.

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taxation - 7 tax remedies under lgc

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