USE THE SEARCH FOR ALL YOUR LEGAL RESEARCH NEEDS:

PHILIPPINE FISHERIES DEVELOPMENT AUTHORITY vs. CENTRAL BOARD OF ASSESSMENT APPEALS- Real Property Tax


FACTS:

Petitioner owned the Iloilo Fishing Port Complex which was on reclaimed land and consisted of a breakwater, landing quay, water and fuel oil supply system, refrigeration building, market hall and a municipal shed. Petitioner then leased portions of the IFPC to private firms engaged in the fishing business. Iloilo city then assessed the entire IFPC for Real Property Tax.

ISSUE:

Is the entirety of the IFPC subject to the Real Property Tax?

HELD:

NO. The Real Property Tax liability of the IFPC is only on portions leased out to private entities. PFDA is not a GOCC but is actually an instrumentality of the national government exempt from Real Property Tax. Given this, it will only be subject to Real Property Tax on the portions of the IFPC which is leased to private entities. It is not a GOCC since a GOCC must satisfy two requirements: (i) capital stock divided into shares and (ii) authorized to distribute dividends/profits. PFDA does have capital stock but the same is not divided into shares and neither is it a non-stock corporation because it does not have members.

(Note: This was the same decision reached in MIAA vs. Paranaque (July 20, 2006) and again in MIAA vs. Pasay (April 2, 2009) where the property in question was the airport premises. In those cases, the Court additionally provided that other examples of government instrumentalities vested with corporate powers or what are know as “government corporate entities” are Philippine Ports Authority, BSP and University of the Philippines.)    


 Visit the site's Law Firm by clicking the above image to avail of Free Legal Advice or for us to assist you in your legal needs.

Free Legal Advice