The Court of Tax Appeals (CTA) has denied the petition of the National Food Authority (NFA) which challenged the real property tax (RPT) imposed by the municipality of Shariff Aguak in Maguindanao.
The NFA questioned the municipality's RPT assessment against it as it argued that it is a government instrumentality and therefore exempt from RPT. On the other hand, the municipality insisted that NFA is a government-owned and controlled corporation (GOCC) and subject to RPT.
In its decision, the CTA as a full court said the NFA is a GOCC and with the enactment of the Local Government Code in 1991, any exemption from payment of RPT previously granted to GOCCs has now been withdrawn.
"In light of the foregoing discussions, while the Court in Division erred in dismissing the case for petitioner's failure to exhaust available administrative remedies, the Court En Banc, nonetheless, finds no cogent reason to invalidate the RPT assessment sustained by the Court in Division," the decision stated.
The decision was written by Associate Justice Corazon G. Ferrer-Flores with the concurrence of Presiding Justice Roman G. Del Rosario and Associate Justices, Ma. Belen M. Ringpis-Liban, Catherine T. Manahan, Jean Marie A. Bacorro-Villena, Maria Rowena Modesto-San Pedro, Marian Ivy F. Reyes-Fajardo, and Henry S. Angeles.