CEBU, Philippines - Cebu City lawyer Jerone Castillo has questioned the Court of Tax Appeal’s reversal of the decision of the local and central board assessment appeals, which ordered the National Grid Corporation of the Philippines (NGCP) to pay real property taxes from 2001-2008.
The CTA recently ordered the city government to pay P2.5 million to (NGCP) as tax refund representing that time period, but Castillo said the CTA decision was questionable.
“Why is there a reversal of the decision between these boards? Why would there be a decision reversing the decision nga it was filed out of time. There was already a decision why it was reversed? Ngano na sud man ni nga wa man tana sila maka file petition on time?,†Castillo said.
Castillo pointed out that the petition earlier filed by NGCP before the Central Board of Assessment Appeals (CBAA) was dismissed due to lack of merit. It was also reportedly filed out of time.
He said his office is yet to receive a copy of the CTA decision, which came out about a month ago.
“In sum, the Court En Banc finds compelling reason to warrant a partial reversal of the assailed decision and order. Wherefore, the petition for review is hereby partly granted. Accordingly, the decision dated May 30,2011, and order dated November 16, 2011 issued by the Central Board Assessment Appeals are hereby reversed and set aside. Respondent is hereby ordered to refund in favor of petitioner the amount of P2, 454,389.74,†CTA’s decision reads.
Castillo said they will review the ruling carefully once they receive a copy.
“The office hasn’t received yet the decision of CTA requiring the city to refund P2.5 million tax. By the time we will receive the decision we will submit it to lawyers for our deliberation and we will file our necessary responsive pleading, or seek motion for reconsideration on the decision or we will seek reversal of the decision of the tax appeal,†Castillo said.
The NGCP cannot be made liable to pay P2.5 real property taxes from 2001-2008 because the properties were owned by the National Power Commission (NPC) and National Transmission Corporation (TRANSCO), the CTA said.
It was only on January 15, 2009 that the power transmission operation of TRANSCO was formally turned over to NGCP under a concession agreement.
From 2001-2008 the NPC/TRANSCO had the actual or beneficial use and/or possession of the properties subjected of the final notices of demand given by then Cebu city treasurer Ofelia Oliva.
With this, Bautista said NGCP is only liable to pay P388,472.67 for taxable year 2009.
“Therefore, not being the owner or the beneficial user during the period before 2009, petitioner cannot be made liable,†the associate justice said. – (FREEMAN)