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    NPC v. The Provincial Treasurer of Benguet

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    Arahbells
    National Power Corporation (NPC) was assessed real property taxes by local government units in Benguet province for properties used in its power generation operations. NPC claimed the properties were exempt from taxation under law. The court ruled that NPC was required to pay the taxes under protest in order to claim an exemption. While NPC could challenge the authority to tax, it had to follow the legal process of first paying under protest before its appeal could be heard. The court affirmed the dismissal of NPC's appeal for failing to comply with this mandatory requirement.

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    NPC v. The Provincial Treasurer of Benguet

    Uploaded by

    Arahbells
    844 views2 pages
    National Power Corporation (NPC) was assessed real property taxes by local government units in Benguet province for properties used in its power generation operations. NPC claimed the properties were exempt from taxation under law. The court ruled that NPC was required to pay the taxes under protest in order to claim an exemption. While NPC could challenge the authority to tax, it had to follow the legal process of first paying under protest before its appeal could be heard. The court affirmed the dismissal of NPC's appeal for failing to comply with this mandatory requirement.

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    NPC v. the Provincial Treasurer of Benguet

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    National Power Corporation (NPC) was assessed real property taxes by local government units in Benguet province for properties used in its power generation operations. NPC claimed the properties were exempt from taxation under law. The court ruled that NPC was required to pay the taxes under protest in order to claim an exemption. While NPC could challenge the authority to tax, it had to follow the legal process of first paying under protest before its appeal could be heard. The court affirmed the dismissal of NPC's appeal for failing to comply with this mandatory requirement.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    844 views2 pages

    NPC v. The Provincial Treasurer of Benguet

    Uploaded by

    Arahbells
    National Power Corporation (NPC) was assessed real property taxes by local government units in Benguet province for properties used in its power generation operations. NPC claimed the properties were exempt from taxation under law. The court ruled that NPC was required to pay the taxes under protest in order to claim an exemption. While NPC could challenge the authority to tax, it had to follow the legal process of first paying under protest before its appeal could be heard. The court affirmed the dismissal of NPC's appeal for failing to comply with this mandatory requirement.

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    © All Rights Reserved
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    NATIONAL POWER CORPORATION v. THE PROVINCIAL TREASURER OF BENGUET, et al.

    G. R. NO. 209303, 14 November 2016, THIRD DIVISION (Peralta, J.)

    DOCTRINE OF THE CASE

    “If the property being taxed has not been dropped from the assessment roll, taxes must be paid
    under protest if the exemption from taxation is insisted upon.”

    FACTS:
    National Power Corporation (NPC) is a government-owned and controlled corporation created
    to undertake the development of power generation and production from hydroelectric or other
    sources, and may undertake the construction, operation and maintenance of power plants,
    dams, reservoirs, and other works. It operates and maintains the Binga Hydro-Electric Power
    Plant. Respondents Provincial Treasurer, Provincial Assessor, Municipal Treasurer and
    Municipal Assessor of Itogon are representatives of the province of Benguet, a local
    government unit. Respondent issued the subject assessment in their official capacities.

    Municipal Assessor of Benguet assessed the NPC the amount of ₱62,645,668.80 real property
    tax. NPC challenged before the Local Board of Assessment Appeals (LBAA) the legality of the
    assessment and the authority of the respondents to assess and collect real property taxes from
    it when its properties are exempt pursuant to Section 234 (b) and (c) of Local Government
    Code. Respondents alleged that NPC’s properties were not exempt from tax since the
    properties were classified in their tax declarations as “industrial,” “for industrial use,” or
    “machineries” and “equipment.” There was no evidence that the properties were being used
    for generation and transmission of electric power. LBAA deferred the proceedings upon NPC’s
    payment under protest of the assessed amount, or upon filing of a surety bond to cover the
    disputed amount of tax. NPC filed a petition for review before the Central Board of Assessment
    Appeals (CBAA) claiming that payment under protest was not required before it could challenge
    the authority of respondents to assess tax on tax exempt properties before the LBAA. CBAA
    dismissed the appeal for being filed out of time. The CBAA, in an Order denied the NPC’s
    motion for reconsideration. It ruled that it is incumbent upon the NPC to pay under protest
    before the LBAA could entertain its appeal as provided under LGC. NPC appealed to CTA En
    Banc by filing a Petition for Review. The CTA En Banc denied the same for lack of merit.

    ISSUE:
    WON NPC need to pay the assessed amount under protest in claiming for an exception from
    the payment of real property tax.

    RULING
    Yes. Settled is the rule that should the taxpayer/real property owner question the excessiveness
    or reasonableness of the assessment, LGC directs that the taxpayer should first pay the tax due
    before his protest can be entertained. A claim for exemption from the payment of real property
    taxes does not actually question the assessor’s authority to assess and collect such taxes, but
    pertains to the reasonableness or correctness of the assessment by the local assessor. Every
    person who shall claim exemption from payment of real property taxes imposed upon said
    property shall file with the provincial, city or municipal assessor sufficient documentary
    evidence in support for such claim. The burden of proving is upon whom the subject real
    property is declared. If the property being taxed has not been dropped from the assessment
    roll, taxes must be paid under protest if the exemption from taxation is insisted upon. NPC’s
    failure to comply with the mandatory requirement of payment under protest in accordance
    with Section 252 of the LGC was fatal to its appeal.

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