07-20-2019, 03:52 PM
UP vs. City Treasurer of Quezon City
GR No. 214044, June 19, 2019
Facts
This is a petition for certiorari and prohibition filed by the University of the Philippines (UP) against the City Treasurer of Quezon City seeking to annual the Statement of Delinquency addressed to UP as well as the Final Notice of Delinquency which required UP to pay real estate tax on a parcel of land which is currently leased to Ayala Land.
The Issue
WHETHER PETITIONER UNIVERSITY OF THE PHILIPPINES IS LIABLE FOR REAL PROPERTY TAX IMPOSED ON THE SUBJECT PROPERTY LEASED TO AYALA LAND, INC.
- Findings of fact are not necessary as the present petition asks to determine whether UP, as a chartered academic institution with specific legislated tax exemptions, is legally liable for the real property tax on the land leased to ALI. This issue is a pure question of law, not of fact.
- Before the passage of Republic Act No. 9500, there was a need to determine who had beneficial use of UP's property before the property may be subjected to real property tax. After the passage of Republic Act No. 9500, there is a need to determine whether UP's property is used for educational purposes or in support thereof before the property may be subjected to real property tax.
- Section 22 of Republic Act No. 9500, previously quoted above, allows UP to lease and develop its land subject to certain conditions. The Contract of Lease between UP and ALI shows that there is an intent to develop "a prestigious and dynamic science and technology park, where research and technology-based collaborative projects between technology and the academe thrive, thereby becoming a catalyst for the development of the information technology and information technology-enabled service."35 The development of the subject land is clearly for an educational purpose, or at the very least, in support of an educational purpose.
- Section 25(a) of Republic Act No. 9500, provided that all of UP's "revenues and assets used for educational purposes or in support thereof shall be exempt from all taxes and duties."
- There is no longer any need to determine the tax status of the possessor or of the beneficial user to further ascertain whether UP's revenue or asset is exempt from tax.
- Apart from the rule in statutory construction that a law that is enacted later prevails over a law that is enacted earlier because it is the latest expression of legislative will, Sections 27 and 30 of Republic Act No. 9500 provide for rules of construction in favor of Republic Act No. 9500:
- Considering that the subject land and the revenue derived from the lease thereof are used by UP for educational purposes and in support of its educational purposes, UP should not be assessed, and should not be made liable for real property tax on the land subject of this case. Under Republic Act No. 9500, this tax exemption, however, applies only to "assets of the University of the Philippines," referring to assets owned by UP. Under the Contract of Lease between UP and ALI, all improvement~ on the leased land "shall be owned by, and shall be for the account of the LESSEE [ ALI]" during the tenn of the lease. The improvements are not "assets" owned by UP; and thus, UP's tax exemption under Republic Act No. 9500 does not extend to these improvements during the term of the lease.
GR No. 214044, June 19, 2019
Facts
This is a petition for certiorari and prohibition filed by the University of the Philippines (UP) against the City Treasurer of Quezon City seeking to annual the Statement of Delinquency addressed to UP as well as the Final Notice of Delinquency which required UP to pay real estate tax on a parcel of land which is currently leased to Ayala Land.
The Issue
WHETHER PETITIONER UNIVERSITY OF THE PHILIPPINES IS LIABLE FOR REAL PROPERTY TAX IMPOSED ON THE SUBJECT PROPERTY LEASED TO AYALA LAND, INC.
- Findings of fact are not necessary as the present petition asks to determine whether UP, as a chartered academic institution with specific legislated tax exemptions, is legally liable for the real property tax on the land leased to ALI. This issue is a pure question of law, not of fact.
- Before the passage of Republic Act No. 9500, there was a need to determine who had beneficial use of UP's property before the property may be subjected to real property tax. After the passage of Republic Act No. 9500, there is a need to determine whether UP's property is used for educational purposes or in support thereof before the property may be subjected to real property tax.
- Section 22 of Republic Act No. 9500, previously quoted above, allows UP to lease and develop its land subject to certain conditions. The Contract of Lease between UP and ALI shows that there is an intent to develop "a prestigious and dynamic science and technology park, where research and technology-based collaborative projects between technology and the academe thrive, thereby becoming a catalyst for the development of the information technology and information technology-enabled service."35 The development of the subject land is clearly for an educational purpose, or at the very least, in support of an educational purpose.
- Section 25(a) of Republic Act No. 9500, provided that all of UP's "revenues and assets used for educational purposes or in support thereof shall be exempt from all taxes and duties."
- There is no longer any need to determine the tax status of the possessor or of the beneficial user to further ascertain whether UP's revenue or asset is exempt from tax.
- Apart from the rule in statutory construction that a law that is enacted later prevails over a law that is enacted earlier because it is the latest expression of legislative will, Sections 27 and 30 of Republic Act No. 9500 provide for rules of construction in favor of Republic Act No. 9500:
- Considering that the subject land and the revenue derived from the lease thereof are used by UP for educational purposes and in support of its educational purposes, UP should not be assessed, and should not be made liable for real property tax on the land subject of this case. Under Republic Act No. 9500, this tax exemption, however, applies only to "assets of the University of the Philippines," referring to assets owned by UP. Under the Contract of Lease between UP and ALI, all improvement~ on the leased land "shall be owned by, and shall be for the account of the LESSEE [ ALI]" during the tenn of the lease. The improvements are not "assets" owned by UP; and thus, UP's tax exemption under Republic Act No. 9500 does not extend to these improvements during the term of the lease.