Navotas gets a windfall in back taxes

The Navotas government stands to earn a windfall of P280 million in realty back taxes from the Philippine Fisheries Development Authority (PFDA), operator of the Navotas Fish Port complex, following a decision promulgated Tuesday by the Court of Appeals (CA).

When informed of the decision signed by Associate Justice Salvador Valdez Jr., Wenceslao Agmir and Juan Enrique, Mayor Tobias "Toby" Tiangco expressed elation, saying Navotas residents will benefit most from the ruling.

"It was a long court battle but the municipal government emerged victorious in the end," Tiangco said. He said the CA affirmed a lower court decision ordering the PFDA to pay realty tax to the municipal government.

Municipal Administrator Jose Ruiz Jr. said the PFDA will have no recourse but to pay its accumulated debts amounting to more than P280 million. The amount includes realty taxes covering the period from 1982 to 1990.

The CA ruled that the PFDA, although a national government entity, should pay realty tax to the municipal government of Navotas.

The appellate court also ruled that the PFDA is only exempted from paying income taxes. The PFDA had argued that it is exempted from paying both taxes, it being a national government entity.

According to Ruiz, the local government sent a notice to the PFDA in October directing it to place under auction all commercial structures found inside the fishport complex. This prompted the PFDA to bring the case to the regional trial court (RTC).

Tiangco also said they expected the PFDA to elevate the case to the Supreme Court.

Ruiz said he wondered why the PFDA had consistently claimed it was exempted from paying the back taxes when the obligation was clearly defined under its own charter.

The case was pursued by Tiangco’s predecessors, former mayor Felipe del Rosario Jr. and the late mayor Efren Bautista. – Jerry Botial