cta_decision CTA Case No. EB 2407EB 2407 2022-11-07

IMELDA MACANES, in her capacity as the Provincial Treasurer of Benguet and MERLITA G. TOLITO, in her capacity as the Officer-in-Charge of the Municipal Treasury Office of Bakun, Benguet v. LUZON HYDRO CORPORATION

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY ENBANC IMELDA MACANES, in her CTA EB NO. 2407 capacity as the Provincial Treasurer of Benguet and (CBAA Case No. L - 141 -2018) MERLITA G. TOLITO, in her capacity as the Officer-in- Present: Charge of the Municipal Treasury Office of Bakun, DEL ROSARIO, PJ, Benguet, UY, RINGPIS-LIBAN, Petitioners, MANAHAN, BACORRO-VILLENA, -versus- MODESTO-SAN PEDRO, REYES-FAJARDO, CUI-DAVID, and FERRER-FLORES, JJ. LUZON HYDRO CORPORATION, Promulgated: , ~ 1 11 ' / """T Respondent. X- - - --- - - --- -- -------- - ------------------ - ------------------ DECISION CUI-DAVID, J .: Before Us is a Petition for Review filed by petitioners Imelda Macanes and Merlita G. Tolito in their respective capacities as the Provincial Treasurer of Benguet and the Officer-in-Charge of the Municipal Treasury Office of Bakun, Benguet under Section 4(c), Rule 8,1 in relation to Section 2(e), Rule 42 of the Revised Rules of the Court of Tax Appeals (RRCTA), assailing the Central Board of Assessment Appeals (CBAA) Decision dated May 29, 2020 (assailed Decision) and the~ 1 SEC. 4. Where to appeal: mode ofappeal. - ... (c) An appea l from a decision or rul ing of the Centra l Board of Assessment Appeals or the Regional Trial Court in the exercise of their appellatejurisdietion shall be taken to the Cou rt by fi ling before it a petition for review as provided in Rule 43 of the Rules of Court. The Court En Bane shall act on the appeal. 2 SEC. 2. Cases within the jurisdiction of the Court En Bane.- The Court En Bane shall exercise exclusive appellate jurisdiction to revie\~ b) appeal the fo llowing: ... (e) Deci sions of the Central Board of Assessment Appeals (CJAA) in the exercise of its appellate jurisdiction over cases involving the assessment and taxation of real property originally decided by the provincial or city board of assessment appeals:

DECISION CTA EB No. 2407 (CBAA Case No. L-141-2018) Imelda Macanes, in her capacity as the Provincial Treasurer of Benguet and Merlita G. Tolito, in her capacity as the Officer-in-Charge of the Municipal Treasury Office ofBakun, Benguet vs. Luzon Hydro Corporation Page 4 of25 X------------------------------------------------------------------------------------------X Under the 2013 Compromise Agreement, the Province of Benguet likewise agreed to adopt and apply the special assessment level often percent (10%) to "Future Assets" or "any and all properties classified as real property to be acquired, installed, built or constructed and are required to be declared ... forming an integral part of BHP facility."! I On November 24, 2015, LHC declared its machineries consisting of the tunnel, anchor blocks, HDPE pipes, and rock bolts with the Municipal Assessor's Office of Bakun, Benguet. The machineries are located at Mangta, Sinacbat, Bakun, and Benguet (Bakun property).I2 In 2016, after LHC declared the Bakun property, it was required to pay the assessed real property tax (RPT) based on an assessment level of 80% in the amount of Four Hundred Eighty-Six Thousand Nine Hundred Seventy-Three and 72/100 centavos (P486,973.72), covering the back taxes from 2002 to 2015 and the amount due for 2016.13 On January 8, 2016, LHC paid under protest the said assessed RPT with the Office of the Municipal Treasurer of Bakun, Benguet.I4 On February 5, 2016, LHC filed its protest on the said assessed RPT with the Office of the Provincial Treasurer of Benguet via registered mail, copy furnished the Municipal Treasurer and Assessor, respectively, ofBakun, Benguet.1s LHC demanded the refund of the RPT it paid since the subject properties should have been subjected to an assessment level of 10% based on the �2013 Compromise Agreement instead of the 80% assessment level imposed.I6 As the 60-day period prescribed under Section 22617 of the Local Government Code (LGC) for the Provincial Treasurer of Benguet to decide on LHC's protest lapsed, LHC filed its Petition 1\ !d. ~ 12 EB Docket, p. 14. 13 /d. and pp. 27-28. 14 EB Docket, pp. 14 and 28. 15 EB Docket, p. 14. 16 /d. 17 SEC. 226. Local Board ofAssessment Appeals.- Any owner or person having legal interest in the property who is not satisfied with the action of the provincial, city or municipal assessor in the assessment of his property may, within sixty (60) days from the date of receipt of the written notice of assessment, appeal to the Board of Assessment Appeals of the provincial or city by filing a petition under oath in the form prescribed for the purpose, together with copies of the tax declarations and such affidavits or documents submitted in support of the appeal.

DECISION CTA EB No. 2407 (CBAA Case No. L-141-201'3) Imelda Macanes, in her capacity as the Provincial Treasurer of Benguet and Merlita G. Tolito, in her capacity as the Officer-in-Charge of the Municipal Treasury Office of Bakun, Benguet vs. Luzon Hydro Corporation Page 7 of25 X------------------------------------------------------------------------------------------X Petitioners submit that the assailed Decision is incongruent with NPC v. Luzon Hydro Corporation, et al.2B (NPC) and Luzon Hydro Corporation v. Banggay T. Alwis, Municipal Assessor, et al.,29 where the properties involved therein are the properties under the same PPA. LHC prayed therein for their alleged exemption in paying realty taxes where the Supreme Court held that the subject properties are neither exempt from RPT nor can they be classified as "special," subject to a 10% assessment level. At the time, it was EO No. 60 that was in effect, not EO No. 88. The Supreme Court, however, did not make a ruling on the applicability of EO No. 60 or any other executive issuances and limited its decision on the taxability of LHC and the exemptions it invoked as those are the issues that were raised. Petitioners further emphasize that nowhere in the provisions of EO No. 88 does it specifically identify LHC as one of the Independent Power Producers (IPPs) covered by such issuance, citing Section 1 of the said EO. The assailed Decision is premature for precociously determining the applicability of EO No. 88, which should only be raised as an issue by LHC if they choose to invoke EO No. 88 so that petitioners can deny the same. Said issue should be ventilated in a separate case where both parties will be given a chance to submit their arguments on the matter. Respondent's counter-arguments: Respondent, in its Comment, counter-argues that petitioners failed to show authority to file the Petition; the Petition was filed out of time; the Petition merely rehashed petitioners' Motion for Partial Reconsideration on the assailed Resolution, and the CBAA correctly applied EO No. 88; hence, the Petition must be denied. It claims that CBAA correctly applied EO No. 88 in the assailed Decision under Section 8, Rule 51 of the Rules of Court. It adds that its Petition for Review before the LBAA raised an issue as to "whether it is entitled to a tax refund or credit in the total amount of Four Hundred Eighty-Six Thousand Nine Hundred Seventy-Three Pesos and 72/100 (P486,972.71) [sic] 28 G.R. No. 244450, June 10, 2019. If' 29 G.R. No. 244659, June 10,2019.

DECISION CTA EBNo. 2407 (CBAA Case No. L-141-2018) Imelda Macanes, in her capacity as the Provincial Treasurer of Benguet and Merlita G. Tolito, in her capacity as the Officer-in-Charge of the Municipal Treasury Office of Bakun, Benguet vs. Luzon Hydro Corporation Page 8 of25 X------------------------------------------------------------------------------------------X representing overpaid realty ta-xes on the Bakun Property."3o The application of EO No. 88 is closely related and intertwined with the afore-quoted issue. Thus, its application was necessary to completely dispose of the issue on the correct assessment level to be imposed on the Bakun property. THE COURT EN BANC'S RULING Before We determine the applicability of EO No. 88, We shall first rule on the timeliness of the filing of the present Petition and the authority of the petitioners to file the same, as both issues may warrant the outright dismissal of this case. The instant Petition for Review was timely filed. Respondent argues that petitioners lack the authority to file the Petition before this Court. Even if they were authorized to file, the Petition should still be dismissed for being filed beyond the reglementary period. Under Section 1131 of Republic Act (RA) No. 1125, as amended, and Section 3(c), Rule 832 of the RRCTA, a petition for review must be filed with this Court within thirty (30) days from receipt of the copy of the questioned decision or ruling of the CBAA in the exercise of its appellate jurisdiction. Petitioners allege that the assailed Resolution dated November 25, 2020, was received through their counsel on December 29, 2020.33 ~ 30 EB Docket, Comment, par. 32, p. 129. 31 SEC. II. Who May Appeal; Mode ofAppeal; Effect ofAppeal. - Any party adversely affected by a decision, ruling or inaction of the Commissioner of Internal Revenue, the Commissioner of Customs, the Secretary of Finance, the Secretary of Trade and Industry or the Secretary of Agriculture or the Central Board of Assessment Appeals or the Regional Trial Courts may file an appeal with the CTA within thirty (30) days after the receipt of such decision or ruling or after the expiration of the period fixed by law for action as referred to in Section 7(a)(2) herein. xxx ... Provided, however, That with respect to decisions or rulings of the Central Board of Assessment Appeals and the Regional Trial Court in the exercise of its appellate jurisdic~ion, appeal shall be made by filing a petition for review under a procedure analogous to that provided for under Rule 43 of the 1997 Rules of Civil Procedure with the CTA, which shall hear the case En Bane. (Emphasis supplied) 32 SEC. 3. Who may appeal; period to file petition.- (c) A party adversely affected by a decision or ruling of the Central Board of Assessment Appeals and the Regional Trial Court in the exercise of their appellate jurisdiction may appeal to the Court by filing before it a petition for review within thirty days from receipt of a copy of the questioned decision or ruling. (Emphasis supplied) 33 EB Docket, p. 2.

DECISION CTA EB No. 2407 (CBAA Case No. L-141-2018) Imelda Macanes, in her capacity as the Provincial Treasurer of Benguet and Merlita G. Tolito, in her capacity as the Officer-in-Charge of the Municipal Treasury Office of Bakun, Benguet vs. Luzon Hydro Corporation Page 11 of25 x-~----------------------------------------------------------------------------------------x (a)(2),39 468 (a)(l)(vii),40 and 470(d) and (e)41 of the LGC to support its claim that the Provincial and/ or the Municipal Treasurer are not empowered to initiate an appeal before this Court. It further claims that the ruling on the fatal defect of the Certification of Non-Forum Shopping in the case of Makati City Treasurer and City of Makati v. Mermac, Inc. 42 applies on all fours in this case. Hence, this Court has sufficient ground to dismiss the instant Petition outright. When directed by this Court to submit proof of their authorities to cause the filing of the instant Petition for Review issued by their respective sanggunian,43 petitioners explained that the sanggunian authority is not necessary considering that the LGC expressly authorized local government units through their local treasurers to enforce the collection of the basic RPT in any court of competent jurisdiction.44 Petitioners cited Sections 183 and 266 of the LGC, viz.: SEC. 183. Collection ofDelinquent Taxes, Fees, Charges or other Revenues through Judicial Action. - The local government unit concerned may enforce the collection of delinquent taxes, fees, charges or other revenues by civil action in any court of competent jurisdiction. The civil action ~ 39 SEC. 22. Corporate Powers. - (a) Every local government unit, as a corporation, shall have the following powers: (2) To sue and be sued; 40 SEC. 468. Powers, Duties, Functions and Compensation. (a) The sangguniang panlalawigan, as the legislative body of the province, shall enact ordinances, approve resolutions and appropriate funds for the general welfare of the province and its inhabitants pursuant to Section 16 of this Code in the proper exercise of the corporate powers of the province as provided for under Section 22 of this Code, and shall: (1) Approve ordinances and pass resolutions necessary for an efficient and effective provincial government and, in this connection, shall: (vii) Subject to the provisions of this Code and pertinent laws, determine the powers and duties of ofticials and employees of the province; 41 SEC. 470. Appointment, Qualifications, Powers, and Duties. (d) The treasurer shall take charge of the treasury office. perform the duties provided for under Book II of this Code, and shall: (I) Advise the governor or mayor, as the case may be, the sanggunian, and other local government and national officials concerned regarding disposition oflocal government funds, and on such other matters relative to public finance; (2) Take custody of and exercise proper management of the funds of the local government unit concerned; (3) Take charge of the disbursement of all local government funds and such other funds the custody of which may be entrusted to him by law or other competent authority; (4) Inspect private commercial and industrial establishments within the jurisdiction of the local government unit concerned in relation to the implementation of tax ordinances, pursuant to the provisions under Book II of this Code; (5) Maintain and update the tax information system of the local government unit; (6) In the case of the provincial treasurer, exercise technical supervision over all treasury offices of component cities and municipalities; and (e) Exercise such other powers and perform such other duties and functions as may be prescribed by law or ordinance. 42 CTA EB Case No. 2131 (CTA AC No. 193), September 2, 2020. 43 EB Docket, Resolution dated March 2, 2021, pp. 87-90. "!d., Compliance dated April29, 2021, pp. 107-110.

DECISION CTA EB No. 2407 (CBAA Case No. L-141-2018) Imelda Macanes, in her capacity as the Provincial Treasurer of Benguet and Merlita G. Tolito, in her capacity as the Officer-in-Charge of the Municipal Treasury Office ofBakun, Benguet vs. Luzon Hydro Corporation Page 16 of25 X------------------------------------------------------------------------------------------X Respondent cites the case of LCK Industries, Inc., et al. v. Planters Development Bank,47 where the Supreme Court held that issues impliedly included in or inferable from issues raised during the pre-trial are integral parts of the pre-trial order as much as those that are expressly stipulated. It also invoked Section 1, Rule 12948 of the Revised Rules of Evidence that a court shall mandatorily take judicial notice of the official acts of the executive department of the National Government of the Philippines, such as an EO of the President, without the need for the introduction of evidence. It concluded that CBAA, as a quasi-judicial body, merely took judicial notice of EO No. 88 in determining the appropriate assessment level. Petitioners' arguments are bereft of merit. In Sesbrefi.o v. CBAA, et al. (Sesbrefi.o case),49 the Supreme Court squarely addressed the concern raised by the petitioners as to whether the CBAA may take up and consider issues not raised and errors not assigned for review before the LBAA and the CBAA, respectively. Thus: Petitioner argues that the issue of back taxes has never been raised before the Local Board of Assessment Appeals or the Central Board of Assessment Appeals. Hence, respondents are barred by due process and fair play from alleging them before Respondent CBAA and now before this Court. As a rule, no issue may be raised on appeal unless it has been brought before the lower tribunal for its consideration. The Court has held in several cases, however, that an appellate court has an inherent authority to review unassigned errors (1) which are closely related to an error properly raised, or (2) upon wnich the determination of the error properly assigned is dependent, or (3) where the Court finds that consideration of them is necessary in arriving at a just decision of the case. Thus: . . . . In line with the modern trends of procedure, we are told that, "while an assignment of error which is required by law or rule of court W( 47 G.R. No. 170606, November 23, 2007. 48 SEC. I. Judicial notice, when mandatory.- A court shall take judicial notice, without the introduction of evidence, of the existence and territorial extent of states, their political history, forms of government and symbols of nationality, the law of nations, the admiralty and maritime courts of the world and their seals, the political constitution and history of the Philippines, official acts of the legislative, executive and judicial departments of the National Government of the Philippines, the laws of nature, the measure of time, and the geographical divisions. 49 G.R. No. 106588, March 24, 1997.

DECISION CTA EB No. 2407 (CBAA Case No. L-141-2018) Imelda Macanes, in her capacity as the Provincial Treasurer of Benguet and Merlita G. Tolito, in her capacity as the Officer-in-Charge of the Municipal Treasury Office of Bakun, Benguet vs. Luzon Hydro Corporation Page 17 of25 X------------------------------------------------------------------------------------------X has been held essential to appellate review, and only those assigned will be considered, there are a number of cases which appear to accord to the appellate court a broad discretionary power to waive the lack of proper assignment of errors and consider errors not assigned. And an unassigned error closely related to the error properly assigned, or upon which the determination of the question raised by the error properly assigned is dependent, will be considered by the appellate court notwithstanding the failure to assign it as error. (4 C.J.S., 1734; 3 C.J., 1341, footnote 77). At any rate, the Court is clothed with ample authority to review matters, even if they are not assigned as errors in their appeal, if it finds that their consideration is necessary in arriving at a just decision of the case ... Although the foregoing citations specifically referred to "appellate courts," there appears no reason why these should not apply to appellate administrative agencies, where rules of procedure are liberally construed. In the present case, we hold that Respondent CBAA did not err in considering the issue of back taxes, the same being closely related to an error properly raised. Petitioner himself assailed the subject assessment before the Respondent CBAA for being "excessive and unconscionable." In resolving this issue, Respondent CBAA was duty-bound to review the factual antecedents of the case and to apply thereon the pertinent provisions of law. In the process, Respondent CBAA applied Section 25 of PO 464 which had authorized the imposition of back taxes. In any event, consideration of the question of the back taxes is essential to a just decision on the case, as will be shown below. To reiterate, as a rule, no issue may be raised on appeal unless it has been brought before the lower tribunal for its consideration.so However, the Supreme Court has held in several cases, that an appellate court has an inherent authority to review matters, even if they are not assigned as errors in their appeal (1) which are closely related to an error properly raised, or (2) upon which the determination of the error properly assigned is dependent, or (3) where the Court finds that t! �5 Chinatrust (Phils.) Commercial Bankv. Turner, G.R. No. 191458, July 3, 2017; Vitug v. Abuda, G.R. No. 201264, .January 11, 2016; Maxicare PC!B Cigna Healthcare v. Contreras. G.R. No. 194352, 702 Phil. 688, 696, .January 30, 2013; Manila Bay Club Corporation v. Court of Appeals. G.R. No. 110015, 249 SCRA 303, 307, October 13, 1995; Lopez Realty, Inc. v. Fontecha, G.R. No. 76801,247 SCRA 183, 191, August II, 1995, citingAnchuelo v. lAC, G.R. No. 71391, 14 7 SCRA 434. January 29, 1987.

DECISION CTA EBNo. 2407 (CBAA Case No. L-141-2018) Imelda Macanes, in her capacity as the Provincial Treasurer of Benguet and Merlita G. Tolito, in her capacity as the Officer-in-Charge of the Municipal Treasury Office of Bakun, Benguet vs. Luzon Hydro Corporation Page 18 of25 X------------------------------------------------------------------------------------------X consideration of them is necessary in arriving at a just decision of the case.s1 Although the foregoing citations expressly referred to "appellate courts," there appears no reason why these should not apply to appellate administrative agencies, like the CBAA, where rules of procedure are liberally construed. s2 Similarly, the Court En Bane is not precluded from ruling on the applicability of EO No. 88 in the instant case, even if it was not raised as an issue nor an assigned error by the parties before the LBAA and the CBBA. Under Section 1, Rule 1453 of the RRCTA, in deciding the case, the Court of Tax Appeals may not limit itself to the issues stipulated by the parties but may also rule upon related issues necessary to achieve an orderly disposition of the case.s4 In the instant case, the issue of the applicability of EO No. 88, which provides for an assessment level of fifteen percent (15%), is inextricably intertwined with the issue of whether the assessment level to be imposed on the Bakun Property is ten percent (1 0%) or eighty percent (80%). As held in Sesbrefw, the CBAA was duty-bound to review the factual antecedents of the case and apply the pertinent provisions of law. Here, the CBAA used the fifteen percent (15%) assessment level under EO No. 88, Series of2019, to completely dispose of the issue of what assessment level shall be applied on the Bakun Property. Given the foregoing jurisprudential pronouncements, the CBAA did not err in applying EO No. 88 in the present case. ~ 51 Holy Trinity Realty & Development Corporation v. Victoria De/a Cruz, et al., G.R. No. 200454, October 22, 2014, citing Carbonilla v. Board ofAirlines Representatives, G.R. No. 193247, September 14, 20 II; St. Michael's Institute v. Santos, G.R. No. 145280, 371 SCRA 383, 394. December 4, 2001; Heirs ofRamon Durano. Sr. v. Uy, G.R. No. 136456, 344 SCRA 238, 257, October 24, 2000; MIV "Don Martin" Voy 047 and its Cargoes of6,500 Sacks ofimported Rice. et al. v. Han. Secretary ofFinance, eta/., G.R. No. 160206, July 15, 2015, citing Comilang v. Burcena, G.R. No. 146853, February 13, 2006; Sesbrefio v. Central Board ofAssessment Appeals (CBAA) and the City Assessor ofCebu City, G.R. No. I06588, March 24, 1997. 52 Sesbreifo v. CBAA, eta/., G.R. No. 106588, March 24, 1997. 53 SEC. I. Rendition qf judgment. - In deciding the case, the Court may not limit itself to the issues stipulated by the parties but may also rule upon related 1ssues necessary to achieve an orderly disposition of the case. (Emphasis supplied) 54 C!R v. Lancaster Philippines, Inc., G.R. No. 183408, July 12,2017.

DECISION CTA EB No. 2407 (CBAA Case No. L-141-2018) Imelda Macanes, in her capacity as the Provincial Treasurer of Benguet and Merlita G. Tolito, in her capacity as the Officer-in-Charge of the Municipal Treasury Office of Bakun, Benguet vs. Luzon Hydro Corporation Page 19 of25 X------------------------------------------------------------------------------------------X Anent petitioners' claim that they were not given a chance to argue or even comment on the applicability of the said EO in the present case, the Court En Bane is not persuaded. Records reveal that petitioners were duly heard through the position paper, exhibits, and documents they submitted before the CBAA. Petitioners were also heard during the clarificatory hearing conducted after the submission of the position paper. 55 In the proceedings before the CBAA, the parties were directed to submit their verified position papers and replies. Under the 2016 CBAA Rules of Procedure (CBAA Rules), the verified position paper with supporting documents and affidavits is filed within fifteen (15) days from the termination of the preliminary conference. A reply may be filed within ten (10) days from receipt of the position paper to prove the fact or any cause of action raised in the position paper. 56 Here, respondent served petitioners a copy of its Position Paper dated December 20, 2019, which detailed its argument that the realty taxes on the Bakun Property should be assessed at an assessment level of fifteen percent (15%) under EO No. 88, Series of 2019. It prayed that the CBAA orders petitioners to recompute the realty taxes on the Bakun Property based on the provisions of EO No. 88.57 Petitioner did not file a Reply to dispute respondent's argument anent the applicability of EO No. 88. 58 Indeed, petitioners made no credible showing of the supposed violation of their right to due process. ~ "EB Docket, CBAA Decision dated May 29, 2020, p. 36. 56 RULE IV: APPEALS TO THE LOCAL BOARDS OF ASSESSMENT APPEALS SEC. I I. Submission of Position Papers- (a) The Local Board shall direct the parties to submit simultaneously their verified position papers with supporting documents and affidavits, if any, on a date set within fifteen ( 15) days from the date of termination of the preliminary conference. (b) No additional evidence nor amendment of petition shall be allowed after the filing of position papers, unless with leave of the Local Board. (c) The position papers of the parties shall cover only those claims and causes of action stated in the petition or amended petition. accompanied by all supporting documents, including the judicial affidavits of witnesses, which shall be considered as their direct testimony. (d) Within ten (10) days from receipt of the position paper of the parties, a reply may be tiled. The reply shall not allege and/or prove facts and any cause(s) of action not referred to or included in the original or amended petition or answer or raised in the position paper. (Emphasis supplied) 57 EB Docket, p. 211-216. 58 !d., par. 2, p. 36.

DECISION CTA EB No. 2407 (CBAA Case No. L-141-2018) Imelda Macanes, in her capacity as the Provincial Treasurer of Benguet and Mer!ita G. Tolito, in her capacity as the Officer-in-Charge ofthe Municipal Treasury Office of Bakun, Benguet vs. Luzon Hydro Corporation Page 20 of25 X------------------------------------------------------------------------------------------X Finally, the said EO No. 88, Series of 2019, and the executive issuances prior and subsequent thereto59 were promulgated pursuant to Section 277 of the LGC of 1991, which refers to the authority of the President of the Philippines to condone or reduce the RPT and interest for any year in any province, city, or municipality, viz.: SEC. 277. Condonation or Reduction of Tax by the President of the Philippines.- The President of the Philippines may, when public interest so requires, condone or reduce the real property tax and interest for any year in any province or city or a municipality within the Metropolitan Manila Area. The above provision is clear and categorical as to the power of the President to condone or reduce RPT and interest such that there is no longer any room for interpretation - only application.60 The exercise of this power requires no concurrent action from either or both branches of government as the LGC expressly recognized the existence of said executive power under Section 277.61 "" 59 The presidential prerogative to condone or reduce real property taxes assessed on power generation facilities of IPPs Ua:> V"'"'" '-'A"'I'-'I~..._U VII UH.,, IVlJUV�1110 V ...... a;HULJ-'>. Executive Orders Covered calendar year (CY) for all years up to CY 2021 Executive Order No. 157, Reduction and Condonation of Real Property Taxes and Interest/Penalties Assessed on the Power Generation Facilities oflPPs under Build-Operate-Transfer Contracts with GOCCs, December 16, 2021 Executive Order No. 126, Reduction and Condonation of Real Property Taxes for all years up to CY 2020 and Interest/Penalties Assessed on the Power Generation Facilities of Independent Power Producers Under Build- Operate-Transfer Contracts with Government-Owned Or -Controlled Corporations, March 4, 2021 Executive Order No. 117, Reduction and Condonation of Real Property Taxes for all years up to CY 2019 and Interest/Penalties Assessed on Power Generation Facilities of IPPs under BOT Contracts with GOCCs, July 24, 2020 Executive Order No. 88, Reduction and Condonation of Real Property Taxes for all years up to CY 2018 and Interest/Penalties Assessed on Power Generation Facilities of IPPs under BOT Contracts with GOCCs, August 13, 2019 Executive Order No. 60, Reduction and Condonation of Real Property Taxes for all years up to CY 2017 and Interest/Penalties Assessed on Power Generation Facilities of IPPs under BOT Contracts with GOCCs, July 25, 2018 Executive Order No. 19, Reduction and Condonation of Real Property Taxes for the years 20 15 and 2016 and Interests/Penalties Assessed on the Power Generation Facilities of Independent Power Producers under Build-Operate Transfer Contracts with Government-Owned or -Controlled Corporations, April27. 2017 I Executive Order No. 173, Reduction and Condonation of Real Property Taxes for all years up to 2014 and Interest/Penalties Assessed on the power Generation Facilities of Independent Power Producers Under Build-Operate-Transfer Contracts with Government-Owned and/or -Controlled Corporations, October 3 I, 2014 Executive Order No. 27, Reduction and Condonation of Real Property Taxes for all years up to 2011 and Interest/Penalties Assessed on the Power Generation Facilities of Independent Power Producers Under Build-Operate-Transfer Contracts with Government-Owned or Controlled Corporations in the Province of Quezon, February 28, 2011 60 Interpretation of Sec. 277 ofRA 7160 Re: Condonation or Reduction of Tax by the President of the PhiL, DOJ Opinion No. 009, s. 2011. February 15,2011. 61 /d.

REPUBLIC OF THE PH ILIPPINES COURT OF TAX APPEALS QUEZON CITY ENBANC IMELDA MACANES, in her capacity CTA EB NO. 2407 as the Provincial Treasurer of (CBAA Case No. L -141-20 18) Bengue t and MERLITA G. TOLITO, in her capacity as the Officer-in- Present: Charge of the Municipal Treasury Office of Bakun, Benguet, DEL ROSARIO, P.J, Petitioners, UY, RINGPIS-LIBAN, -versus- MANAHAN, BACO R R O - V I L L E N A, MODESTO-SAN PEDRO, REYES-FAJARDO, and CUI-DAVID, JJ. LUZON HYDRO CORPORATION, Respondent. )(- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - DISSENTING OPINION RINGPIS-LIBAN, L : With due respect, I dissent from the majority decision that Petitioners, the Provincial Treasurer of Benguet and Municipal Treasurer (OIC) of Bakun, Benguet, have no valid authority to ftle the instant Petitio n for Review and to sign the requisite Verification and Certification of No n-Forum Shopping, without any prior ordinance or resolution from their respective sanggunian. The local treasurer is the official charged under the Local Government Code ("LGC") of 1991 1 to collect ta2ees with the corresponding duty to ensure that all ta2ees and other revenues of the city are collected. Section 470 there/ Republic Act No. 7160, October 10, 1991.

Dissenting Opinion CTA EB No. 2407 (CBAA Case No. L-141-2018) states that "the treasurer shall take charge of the treasury office, perform the duties provided for under Book II of this Code". Book II refers to Local Taxation and Fiscal Matters, which consists of Local Government Taxation (fide I) and Real Property Taxation (Title II), among others. When it comes to real property tax ("RPT"), the LGC of 1991 categorically discharges collection functions to the local treasurer, as follows: 1) Section 2392 - notify the owner of the property or person having legal interest of idle lands of the imposition of the additional tax; 2) Sections 2473, 2544, 2585, 2606, 26V, 2668 - collect RPT and enforce remedies for its collection; 3) Section 2799 -post the notice of time for collection of RPT; 2 Section 239. Listing of Idle Lands by the Assessor. -The provincial, city or municipal assessor shall make and keep an updated record of all idle lands located within his area of jurisdiction. For purposes of collection, the provincial, city or municipal assessor shall furnish a copy thereof to the provincial or city treasurer who shall notify, on the basis of such record, the owner of the property or person having legal interest therein of the imposition of the additional tax. 3 Section 247. Collection of Tax. -The collection of the real property tax with interest thereon and related expenses, and the enforcement of the remedies provided for in this Title or any applicable laws, shall be the responsibility of the city or municipal treasurer concerned... 4 Section 254. Notice of Delinquency in the Payment of the Real Property Tax. - (a) When the real property tax or any other tax imposed under this Title becomes delinquent, the provincial, city or municipal treasurer shall immediately cause a notice of the delinquency to be posted at the main hall and in a publicly accessible and conspicuous place in each barangay of the local government unit concerned. The notice of delinquency shall also be published once a week for two (2) consecutive weeks, in a newspaper of general circulation in the province, city, or municipality. 5 Section 258. Levy on Real Property.- After the expiration of the time required to pay the basic real property tax or any other tax levied under this Title, real property subject to such tax may be levied upon through the issuance of a warrant on or before, or simultaneously with, the institution of the civil action for the collection of the delinquent tax. The provincial or city treasurer, or a treasurer of a municipality within the Metropolitan Manila Area, as the case may be, when issuing a warrant of levy shall prepare a duly authenticated certificate showing the name of the delinquent owner of the property or person having legal interest therein, the description of the property, the amount of the tax due and the interest thereon... 6 Section 260. Advertisement and Sale. - Within thirty (30) days after service of the warrant of levy, the local treasurer shall proceed to publicly advertise for sale or auction the property or a usable portion thereof as may be necessary to satisfy the tax delinquency and expenses of sale ... 7 Section 263. Purchase of Property By the Local Government Units for Want of Bidder. - In case there is no bidder for the real property advertised for sale as provided herein, the real property tax and the related interest and costs of sale the local treasurer conducting the sale shall purchase the property in behalf of the local government unit concerned to satisfy the claim and within two (2) days thereafter shall make a report of his proceedings which shall be reflected upon the records of his office. It shall be the duty of the Registrar of Deeds concerned upon registration with his office of any such declaration of forfeiture to transfer the title of the forfeited property to the local government unit concerned without the necessity of an order from a competent court. 8 Section 266. Collection of Real Property Tax Through the Courts. - The local government unit concerned may enforce the collection of the basic real property tax or any other tax levied under this Title by civil action in any court of competent jurisdiction. The civil action shall be filed by the local treasurer within the period prescribed in Section 270 of this Code. 9 Section 249. Notice of Time for Collection of Tax. -The city or municipal treasurer shall, on or before the thirty-first (31st) day of January each year, in the case of the basic real property ,....v-- tax and the additional tax for the Special Education Fund (SEF) or any other date to be

Dissenting Opinion CTA EB No. 2407 (CBAA Case No. L-141-2018) 4) Section 25210 - receive and decide on taxpayer's payment under protest; 5) Section 25311 - receive and decide on taxpayer's claim for refund or credit for RPT and interests; 6) Sections 261 12 and 26213 - return property to taxpayer upon redemption; and 7) Section 26914 - certify delinquencies remaining uncollected. prescribed by the sanggunian concerned in the case of any other tax levied under this title, post the notice of the dates when the tax may be paid without interest at a conspicuous and publicly accessible place at the city or municipal hall. Said notice shall likewise be published in a newspaper of general circulation in the locality once a week for two (2) consecutive weeks. 10 Section 252. Payment Under Protest. - (a) No protest shall be entertained unless the taxpayer first pays the tax. There shall be annotated on the tax receipts the words "paid under protest". The protest in writing must be filed within thirty (30) days from payment of the tax to the provincial, city treasurer or municipal treasurer, in the case of a municipality within Metropolitan Manila Area, who shall decide the protest within sixty (60) days from receipt. 11 Section 253. Repayment of Excessive Collections. - When an assessment of basic real property tax, or any other tax levied under this Title, is found to be illegal or erroneous and the tax is accordingly reduced or adjusted, the taxpayer may file a written claim for refund or credit for taxes and interests with the provincial or city treasurer within two (2) years from the date the taxpayer is entitled to such reduction or adjustment. The provincial or city treasurer shall decide the claim for tax refund or credit within sixty (60) days from receipt thereof. In case the claim for tax refund or credit is denied, the taxpayer may avail of the remedies as provided in Chapter 3, Title II, Book II of this Code.. 12 Section 261. Redemption of Property Sold. - Within one (1) year from the date of sale, the owner of the delinquent real property or person having legal interest therein, or his representative, shall have the right to redeem the property upon payment to the local treasurer of the amount of the delinquent tax, including the interest due thereon, and the expenses of sale from the date of delinquency to the date of sale, plus interest of not more than two percent (2%) per month on the purchase price from the date of sale to the date of redemption. Such payment shall invalidate the certificate of sale issued to the purchaser and the owner of the delinquent real property or person having legal interest therein shall be entitled to a certificate of redemption which shall be issued by the local treasurer or his deputy. From the date of sale until the expiration of the period of redemption, the delinquent real property shall remain in possession of the owner or person having legal interest therein who shall be entitled to the income and other fruits thereof. The local treasurer or his deputy, upon receipt from the purchaser of the certificate of sale, shall forthwith return to the latter the entire amount paid by him plus interest of not more than two percent (2%) per month. Thereafter, the property shall be free from lien of such delinquent tax, interest due thereon and expenses of sale. 13 Section 262. Final Deed to Purchaser. - In case the owner or person having legal interest fails to redeem the delinquent property as provided herein, the local treasurer shall execute a deed conveying to the purchaser said property, free from lien of the delinquent tax, interest due thereon and expenses of sale. The deed shall briefly state the proceedings upon which the validity of the sale rests. 14 Section 269. Treasurer to Certify Delinquencies Remaining Uncollected. - The provincial, city or municipal treasurer or their deputies shall prepare a certified list of all real property tax delinquencies which remained uncollected or unpaid for at least one (1) year in his jurisdiction, and a statement of the reason or reasons for such non-collection or non-payment, and shall submit the same to the sanggunian concerned on or before December thirty-first (31st) of the year immediately succeeding the year in which the delinquencies were incurred, with a request for assistance in the enforcement of the remedies for collection provided herei~

Dissenting Opinion CTA EB No. 2407 (CBAA Case No. L-141-2018) Simply put, anything that has to do with collection of RPT is given by law to the local treasurer, for that is his or her sole responsibility by the very nature of the position. Parenthetically, Section 21S, Rule 3 of the Revised Rules of Civil Procedure mandates that "[e]very action must be prosecuted or defended in the name of the real party in interest". The Supreme Court defined real party in interest, as follows: "The real party-in-interest is the party who stands to be benefited or injured by the judgment or the party entided to the avails of the suit. 'Interest' within the meaning of the rule means material interest, an interest in issue and to be affected by the decree, as distinguished from mere interest in the question involved, or a mere incidental interest."16 Only a real party in interest can institute a case (i.e., as plaintiff) or defend itself against a court action (i.e., as defendant). A real party in interest-plaintiff is one who has a legal right while a real party in interest-defendant is one who has a correlative legal obligation whose act or omission violates the legal right of the former. 17 On that note, the real party in interest is the signatory of the Verification and Certification against forum shopping in initiatory pleadings. Under Rule 7, Section 418 of the new Revised Rules of Civil Procedure, a verification serves to attest three (3) things: the truthfulness of the allegations in 15 Section 2. Parties in interest. -A real party in interest is the party who stands to be benefited or injured by the judgment in the suit, or the party entitled to the avails of the suit. Unless otherwise authorized by law or these Rules, every action must be prosecuted or defended in the name of the real party in interest. (2a) 16 Edith Sustiguer and Isabel Aposaga v. Jose Tamayo and City of Bacolod, G.R. No. 29341, August 21, 1989. 17 Walter Ascona Lee, Et. AI. v. Hon. Manuel V. Romillo, Jr., Et. AI., G.R. No. L-60937, May 28, 1988. 18 Section 4. Verification. - Except when otherwise specifically required by law or rule, pleadings need not be under oath or verified. A pleading is verified by an affidavit of an affiant duly authorized to sign said verification. The authorization of the affiant to act on behalf of a party, whether in the form of a secretarys certificate or a special power of attorney, should be attached to the pleading, and shall allege the following attestations: (a) The allegations in the pleading are true and correct based on his or her personal knowledge, or based on authentic documents; (b) The pleading is not filed to harass, cause unnecessary delay, or needlessly increase the cost of litigation; and (c) The factual allegations therein have evidentiary support or, if specifically so identified, will likewise have evidentiary support after a reasonable opportunity for discovery. The signature of the affiant shall further serve as a certification of the truthfulness of the allegations in the pleading/V'

Dissenting Opinion CfA EB No. 2407 (CBAA case No. l-141-2018) PageS of 9 the pleading, the pleading was filed in good faith, and the allegations in the pleading are supported by evidence. Verification, when required, is intended to secure an assurance that the allegations of a pleading are true and correct, are not speculative or merely imagined, and have been made in good faith19 and the real party in interest-plaintiff is the best person to execute the same. On the other hand, Section 520 of Rule 7 requires that the plaintiff must certify under oath that he or she has not commenced any other action involving the same issue in the court or any other tribunal or agency. The rule on certification against forum shopping is rooted in the principle that a party-litigant should not be allowed to pursue simultaneous remedies in different forums, as this practice is detrimental to orderly judicial procedure.21 Similar to verification, the real party in interest-plaintiff knows better than anyone else whether a petition has previously been filed involving the same case or substantially the same issues. Accordingly, he or she is the one who signs the certification. Of course, the real party in interest-plaintiff may delegate the signing of the Verification and Certification against forum shopping in initiatory pleadings but that person must be clothed with special authority from the former to do so. In the case of the local treasurer, the LGC of 1991 dictates that the filing of protest/refund (of RPT collection) by the taxpayer must be made to the A pleading required to be verified that contains a verification based on information and belief, or upon knowledge, information and belief, or lack s a proper verification, shall be treated as an unsigned pleading. (4a) 19 Spouses Alfredo D. Valmonte and Maria Lourdes A. Valmonte v. Clarita Alcala, Et. AI., G.R. No. 168667, July 23, 2008 citing Bank of the Philippine Islands v. Court of Appeals, G.R. No. 146923, April 30, 2003. 20 Section S. Certification against forum shopping. - The plaintiff or principal party shall certify under oath in the complaint or other initiatory pleading asserting a claim for relief, or in a sworn certification annexed thereto and simultaneously filed therewith: (a) that he [or she] has not theretofore commenced any action or filed any claim involving the same issues in any court, tribunal or quasi-judicial agency and, to the best of his [or her] knowledge, no such other action or claim is pending therein; (b) if there is such other pending action or claim, a complete statement of the present status thereof; and (c) if he [or she] should thereafter learn that the same or similar action or claim has been filed or is pending, he [or she] shall report that fact within five (S) calendar days therefrom to the court wherein his [or her] aforesaid complaint or initiatory pleading has been filed. The authorization of the affiant to act on behalf of a party, whether in the form of a secretary's certificate or a special power of attorney, should be attached to the pleading. Failure to comply with the foregoing requirements shall not be curable by mere amendment of the complaint or other initiatory pleading but shall be cause for the dismissal of the case without prejudice, unless otherwise provided, upon motion and after hearing. The submission of a false certification or non-compliance with any of the undertakings therein shall constitute indirect contempt of court, without prejudice to the corresponding administrative and criminal actions. If the acts of the party or his [or her] counsel clearly constitute willful and deliberate forum shopping, the same shall be ground for summary dismissal with prejudice and shall constitute direct contempt, as well as a cause for administrative sanctions. (Sa) 21 Republic of the Philippines represented by the Department of Education, Culture and Sports v. Carmel Development, Inc., G.R. No. 142S72, February 20, 2002 ctting Robern Development Corporation v. Judge Jesus V. Quitain, G.R. No. 13S042, September 23, 1 9 9 /

Dissenting Opinion CfA EB No. 2407 (CBAA Case No. L-141-2018) former. The local treasurer is then given sixty (60) days within which to decide the protesrl2 or refund23. This denotes that, by provision of law, the real party in interest on behalf of the local government unit in appeals of protest/refund of RPT collection is the local treasurer. Logically, he or she is the proper party to defend the local government unit in the event the taxpayer decided to appeal the denial of protest/refund to the Local Board of Assessment Appeals ("LBAA''), and eventually to the Central Board of Assessment Appeals ("CBAA"), as provided for in Chapter 3, Title II, Book II of the LGC of 1991. By the same token, the local treasurer is also the proper party to institute the appeal to the CBAA in case the LBAA rules in favor of the taxpayer. In fact, in several cases decided by the Supreme Court, the authority of the local treasurer to be impleaded (as the real party in interest) and to be sued on behalf of the local government unit in lawsuits regarding RPT, was never questioned. 24 The interpretation of the ponencia that only the governor (or the mayor as the case may be) has the authority to file suits on behalf of the local government unit without need for a prior ordinance is not only too narrow but also restrictive. Ut res magis va/eat quampereat. It is a basic rule in statutory construction that because a statute is enacted as a whole and not in parts or sections, the statute should be construed and given effect as a whole. A provision or section which is unclear by itself may be made clear by reading and construing it in relation to the whole statute.25 Otherwise stated, care should be taken that every part of a statute be given effect, on the theory that it was enacted as an integrated measure and not as a hodge-podge of conflicting provisions.26 To be sure, Sections 444, 455 and 465 of the LGC of 1991 confers authority upon the municipal mayor, city mayor and provincial governor to institute administrative or judicial proceedings for violation of ordinances in the collection of taxes and for the recovery of funds and property. However, these chief executives are not granted the sole power to do so. 22 The Local Government Code of 1991, Section 252. 23 The Local Government Code of 1991, Section 253. 24 University .of the Philippines v. City Treasurer of Quezon City, G.R. No. 214044, June 19, 2019; Herarc Re~ty Corporation v. The Provincial Treasurer of Batangas, The Provincial Assessor of Batangas, The Municipal Assessor and Municipal Treasurer of Calatagan, Batangas, Dr. Rafael A. Manalo, Grace Oliva, and Freida Rivera Yap, G.R. No. 210736, September 05, 2018; National Power Corporation v. The Provincial Treasurer of Benguet, The Provincial Assessor of Benguet, The Municipal Treasurer of Itogon, Benguet and The Municipal Assessor of Itogon, Benguet, G.R. No. 209303, November 14, 2016; Manila Electric Company v. The City Assessor and City Treasurer of Lucena City, G.R. No. 166102, August 05, 2015 and Government Service Insurance System v. City Treasurer and City Assessor of the City of Manila, G.R. No. 186242, December 23, 2009. 25 Ruben E. Agpalo, Statutory Construction, Sixth Edition (2009). 26 JMM Promotions & Management, Inc. v. National Labor Relations Commission and Ulpiano L. De Los Santos, G.R. No. 109835, November 22, 199~

Dissenting Opinion CfA EB No. 2407 (CBAA Case No. L-141-2018) Section 247 of the LGC of 1991 states that a local treasurer is duty bound to collect all RPT levied under the jurisdiction of the local government unit, to wit: "Section 247. Collection of Tax. - The collection of the real property tax with interest thereon and related expenses, and the enforcement of the remedies provided for in this Tide or any applicable laws, shall be the responsibility of the city or municipal treasurer concerned. The city or municipal treasurer may deputize the barangay treasurer to collect all taxes on real property located in the barangay: Provided, That the barangay treasurer is properly bonded for the purpose: Provided, further, That the premium on the bond shall be paid by the city or municipal government concerned."27 To collect RPT, Section 256 authorizes the use of civil remedies, which include the institution of judicial action, vi:c "Section 256. Remedies For The Collection OJ Real Property Tax. -For the collection of the basic real property tax and any other tax levied under this Tide, the local government unit concerned may avail of the remedies by administrative action thm levy on real property or by judicial action."28 This may be done even without the prior authorization from the sanggunian, which is bolstered by the fact that nowhere in the enumerated powers and duties of the sanggunian29 can one find the requirement of such prior authorization in favor of the local treasurer for the purpose of filing suits on behalf of the local government unit. More importandy, Sections 252 and 253 in relation to Section 22630 explicidy allows the local treasurer to justify or defend his or her denial of protest/claim for refund of RPT in the LBAA. Taking all the relevant provisions of the LGC of 1991 together, by express provision of law, there is only one conclusion- the local treasurer is granted the 27 Emphasis and underscoring supplied. 28 Emphasis supplied. 29 The Local Government Code of 1991, Sections 447, 458 and 468. 30 Section 226. Local Board of Assessment Appeals. - Any owner or person having legal interest in the property who is not satisfied with the action of the provincial, city or municipal assessor in the assessment of his property may, within sixty (60) days from the date of receipt of the written notice of assessment, appeal to the Board of Assessment Appeals of the provincial or city by filing a petition under oath in the form prescribed for the purpose, together with copies of the tax declarations and such affidavits or documents submitted in support of the appeal. ~

Dissenting Opinion CTA EB No. 2407 (CBAA Case No. L-141-2018) power both to sue and defend on behalf of the local government unit lt represents. The power to fll.e a collection suit includes the authority to flle a suit or defend against a court case questioning the validity of the collection, just as the duty of the local treasurer to collect RPT carries with it the authority to determine liability for RPT and validity of refund of RPT. To conclude that the LGC of 1991 only allows a local treasurer to flle a civil action to collect tax and not to represent the local government unit when it is being sued on RPT matters will curtail and render nugatory Section 247 which clearly and expressly vested collection functions of RPT to the local treasurer. Assuming without conceding that it is the governor/mayor who has authority to sue and/or defend on behalf of the local government unit in refund cases, it begs the question -why did the Respondent in the instant case sued the Petitioners, as local treasurers, in the LBAA and CBAA? Why was the case in the LBAA and CBAA not dismissed since Petitioners supposedly did not have any authority to defend for and in behalf of their local government units? Additionally, it must be emphasized that the instant case is but a continuation of the case originally filed by Respondent before the LBAA, where herein Petitioners were impleaded as Respondents, in order to question Petitioners' denial of Respondent's protest under payment. Essentially, Respondent paid under protest the RPT assessed, and then filed a protest to the local treasurer under Section 252 of the LGC of 1991 in order to question the assessment and at the same time refund the RPT collected. Since the appeal to this Court involves collection of RPT (and the taxpayer's challenge to the validity of such collection), it is within the province of the local treasurer to act upon. More importantly, if the Petitioners were allowed to represent their local government units in the proceedings in the LBAA and CBAA even without a prior ordinance or resolution, it follows that they should be the one to file an appeal on the adverse ruling against them. Substitution of party from the local treasurer to the governor/mayor is not allowed under the Rules of Court. One last point. Section 2, Rule IV of the Consolidated and Revised Rules of Procedure Before the Local Boards of Assessment Appeals (LBAA) and the Central Board of Assessment Appeals (CBAA)31 expressly provides that the local treasurer be the one named as respondent in cases lodged in the LBAA, to wit: "SEC. 2. When to Appeal to the Local Boards - Appeals shall be filed with the said Boards within the periods prescribed as follows:/ 31 May 02, 2016.

Dissenting Opinion CfA EB No. 2407 (CBAA Case No. L-141-2018) XXX XXX XXX b. If the subject matter of the appeal is the denial by the treasurer of a claim for refund or credit of realty taxes paid under protest under Section 252 of R.A. 7160, without questioning the validity or correctness of the assessment made by the assessor. (i) the appeal shall be flied with the Local Board -with the treasurer as the respondent ... XXX XXX XXX c. I f the appeal refers to the denial by the treasurer of a claim under Section 253 ofR.A. 7160 for refund or credit of realty taxes, or any other tax levied under Tide Two, Book II of R.A. 7160, paid but later found to be illegal or erroneous by competent authority. (i) the appeal shall be flied with the Local Board -with the treasurer as the respondent... "32 The provision above is a recognition of the inherent authority of local treasurers under the LGC of 1991, without any authorization from their respective sanggunians, to sue and/or defend against a suit for collection of RPT. All told, I vote that the Petition for Review flied with the Court En Bane be decided on the merits. ~. ~ v <...-..______ MA. BELEN M. RINGPIS-LIBAN Associate Justice 32 Emphasis supplied.

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS Quezon City ENBANC IMELDA MACANES, in her CTA EB NO. 2407 capacity as the Provincial (CBAA Case No. L-141-2018) Treasurer of Benguet and MERLITA G. TOLITO, in her Present: capacity as the Officer-in-Charge of the Municipal Treasury Office DEL ROSARIO, �.L, of Bakun, Benguet, UY, Petitioners, RINGPIS-LIBAN, MANAHAN, -versus- BACORRO-VILLENA, MODESTO-SAN PEDRO, REYES -FAJARDO , CUI-DAVID, and FERRER-FLORES, JJ_. LUZON HYDRO CORPORATION, Respondent. X- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - CONCURRING AND DISSENTING OPINION BACORRO-VILLENA, L.: I concur with the ponencia of my esteemed colleague, Associate Justice Lanee S. Cui-David, that Executive Order (EO ) No. 88, series of 20191 is applicable herein and as a result, respondent Luzon Hydro Corporation's (respondent's) real property tax (RPT) must be recomputed based thereon, notwithstanding the fact that the same was not raised as an issue before the Local Board of Assessment Appeals (LBAA) and the Central Board of Assessment Appeals (CBAA). ~ 1 REDUCTION AND CONDONATION OF REAL PROPERTY TAXES AND INTEREST/PENALTIES ASSESSED ON THE POWER GENERATION FAC ILITIES OF INDEPENDENT POWER PRODUCERS UNDER BUILD-OPERATE-TRANSFER CONTRACTS WITH GOVERNMENT-OWNED OR-CONTROLLED CORPORATIONS.

CONCURRING AND DISSENTING OPINION CTA EB NO. 2407 (CBAA Case No. L-141-2018) Imelda Macanes, in her capacity as the Provincial Treasurer of Benguet and Merlita G. Tolito, in her capacity as the Officer-in-Charge of the Municipal Treasury Office of Bakun Benguet v. Luzon Hydro Corporation x-------- ----------------------------------------------------------------------- -x With all due respect, however, I agree with the thorough discussion of another esteemed colleague, Associate Justice Ma. Belen M. Ringpis-Liban, that local treasurers are inherently authorized under the relevant provisions of the Local Government Code (LGC) of 1991, as amended, to sue and/or defend a suit for collection of RPT even without authorization from their respective sanggunians. To my mind, the LGC of 1991, as amended, has given plenary powers to the local treasurer on matters relative to local and real property taxation. I, thus, find no reason to construe the law to have withheld from the local treasurer the power to appeal an adverse decision against him or her, in relation to the RPT paid under protest. In The Bureau ofCustoms, eta/. v. jade Bros. Farm and Livestock, Inc. 2 , the Supreme Court recognized that "appealed cases are a continuation of the original case and treated as only one case". Hence, when petitioners Imelda Macanes, in her capacity as the Provincial Treasurer of Benguet and Merlita G. Tolito, in her capacity as the Officer-in-Charge of the Municipal Treasury Office of Bakun, Benguet (petitioners), were sued as respondents in the LBAA (following the Consolidated and Revised Rules of Procedure Before the Local Boards of Assessment Appeals and the Central Board of Assessment Appeals), they were simply continuing the case filed against them as a result of an adverse decision of the LBAA and CBAA. Also, the fact that the local treasurer is empowered to file an action at his or her instance is further impliedly recognized by Article 371 of the Rules and Regulations Implementing the Local Government Code of 1991 (IRR) which reads as follows: ART. 371. Fees in Court Actions. - All court actions, criminal or civil, instituted at the instance of the provincial, city, or municipal treasurer or assessor under the provisions of this Rule, shall be exempt from the payment of court and sheriffs fees. 3 In my humble submission that, in the absence of clear requirement under the LGC of 1991, as amended, that the local treasurer must be authorized by the sanggunian concerned before he or she may file an appeal ay against an adverse decision against him or her (or defend a suit for that , matter), the interpretation that local treasurers are inherently authorized G.R. No. 246343, 18 November 2021. Emphasis supplied.

CONCURRING AND DISSENTING OPINION CTA EB NO. 2407 (CBAA Case No. L-141-2018) Imelda Macanes, in her capacity as the Provincial Treasurer of Benguet and Mer!ita G. Tolito, in her capacity as the Officer-in-Charge of the Municipal Treasury Office of Bakun Benguet v. Luzon Hydro Corporation x----- -------------------------------------------------------------------------- -x such is in more keeping with the rules of interpretation as provided in Section 5 ofLGC of1991, as amended, which reads as follows: SEC 5� Rules of Interpretation. - In the interpretation of the provisions of this Code, the following rules shall apply: (a) Any provision on a power of a local government unit shall be liberally interpreted in its favor, and in case of doubt, any question thereon shall be resolved in favor of devolution of powers and of the lower local government unit. Any fair and reasonable doubt as to the existence of the power shall be interpreted in favor of the local government unit concerned[.] As to the issue on the proper execution of the necessary verification and certification of non-forum shopping, the Supreme Court, in the case of Philippine Heart Center v. The Local Government of Quezon City et a/.4, accepted as signatories persons who were in a position to verifY the truthfulness and correctness of the allegations in their respective petitions, VIZ: Cagayan Valley Drug Corporation cited cases like Mactan-Cebu International Airport Authority v. Court of Appeals, Pfizer v. Galan, Novelty Philippines, Inc. v. Court of Appeals, and Lepanto Consolidated Mining Company v. WMC Resources International Pty. Ltd. Where the Court invariably recognized the authority of some corporate officer to sign the verification and certificate against forum shopping, albeit they had not even presented any proof of their authority to represent the company. In all these cases, the Court accepted as proper the signatories' verification and certification against forum shopping because these signatories were in a position to verify the truthfulness and correctness of the allegations in their respective petitions. This is the Court's standard in gauging whether there was substantial compliance with Rule 7, Sections 4 and 5 of the Rules of Court. Here, although the PHC did not expressly authorize Dr. Manzo to sign the petition's verification and certificate against forum shopping in its behalf, Dr. Manzo, as Officer-in-Charge Executive Director of the PHC pursuant to DOH Order No. 2016-2359- A dated August 5, 2016, is indubitably in a position to verify the truthfulness of the allegations in the petition. Too, considering further the substantive issues involved here, liberal application of ~~e rules is warranted so the ends of justice may be served/ G.R. No. 225409, 11 March 2020; Citations omitted and emphasis supplied.

Want an analysis of this document?

Ask ASG Legal AI to summarize it, compare it with other rulings, or explain how it applies to your situation — it researches from this same library.