CTA denies Taguig City petition to seize 50-hectare PVA property

Published October 5, 2020, 3:27 PM

by Jun Ramirez

The Court of Tax Appeals (CTA) has turned down the petition of Taguig City to seize the 50-hectare land of the Philippine Veterans Administration (PVA) for alleged non-payment of real property tax (RPT) amounting to almost P100 million.

Court of Tax Appeals (MANILA BULLETIN)
Court of Tax Appeals (MANILA BULLETIN)

The local government unit (LGU) brought the case to the tax court after the Taguig Regional Trial Court stopped it from confiscating and auctioning the Veterans Center located in Western Bicutan.

The LGU argued that the PVA is not a government agency but a non-stock non-profit corporation liable to pay RPT even as it derived income from leasing large chunk of the land to various commercial establishments.

In affirming the decision of the RTC, the tax court said the center is owned by the national government and administered only by the PVA pursuant to Proclamation No. 192.

Therefore, it said the center is exempted from the said tax pursuant to Sections 133 and 234 of the Local Government Code.

Republic Act 2640 which created the PVA to protect the interest of veterans also exempts it from paying all types of taxes including RPT.

The 22-page decision, penned by Associate Justice Ma. Rowena Modesto-San Pedro stated that lessees of the PVA are the ones that should pay the tax incurred from 1989 to 1999.