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D E C I S I O N Republic of the Philippines CENTRAL BOARD OF ASSESSMENT APPEALS 7th Floor, EDPC Building, BSP Complex Roxas Boulevard, Manila PHILIPPINE FISHERIES DEVELOPMENT AUTHORITY, Petitioner-Appellant, - versus - CBAA CASE NO. L-50 LOCAL BOARD OF ASSESSMENT APPEALS OF CAMARINES SUR, PROVINCE OF CAMARINES SUR, Appellee, - and - PROVINCIAL ASSESSOR OF CAMARINES SUR, PROVINCIAL TREASURER OF CAMARINES SUR, CAMALIGAN MUNICIPAL ASSESSOR AND CAMALIGAN MUNICIPAL TREASURER. Respondents-Appellees. x - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - x D E C I S I O N Before this Board is a manifestation of the Petitioner-Appellant, Philippine Fisheries Development Authority, with the averment that a Memorandum of Agreement had been entered into with the Respondents-Appellees with the end in view of settling their case amicably. The former further moves and prays that this Board stamps its imprimatur of approval to the said agreement and render judgment based on the same. We deemed it wise to attach and be made an integral part of this decision a faithful copy of the proposed Memorandum of Agreement, for record and comparative purposes. After a thorough deliberation and in-depth analysis of all the angles and factors involved, it is the considered view of this Board that the proposed Memorandum of Agreement is in accordance with law, not contrary to morals and public policy and not vitiated by fraud nor duress, thereby worthy of this Board’s approval. Stress must be given to the fact that the parties, one a Government Owned or Controlled Corporation (GOCC) and the other, a Local Reference: Book XII, pp. 187-191 Government Unit (LGC) are but creations of one sovereign parent. As such, both must act fairly and equitably in dealing with one another, as siblings do, especially in the performance of their duties and responsibilities. WHEREFORE, the submitted Memorandum of Agreement is hereby approved. The Respondents-Appellees assessors and treasurers of Camarines Sur are directed to act accordingly, and conformably with the import and intent of the Memorandum of Agreement. Petitioner-Appellant, meanwhile, must keep its part of the bargain in accordance therewith. SO ORDERED. Manila, Philippines, November 10, 2004. (Signed) CESAR S. GUTIERREZ Chairman (Signed) (Signed) ANGEL P. PALOMARES RAFAEL O. CORTES Member Member MEMORANDUM OF AGREEMENT This Agreement is executed this 14TH day of August at Camaligan, Camarines Sur by and between: THE PROVINCIAL GOVERNMENT OF CAMARINES SUR, represented by Hon. LUIS RAYMUND F. VILLAFUERTE, JR., in his capacity as Provincial Governor, with official address at Capitol Complex, Cadlan, Pili, Camarines Sur; and The PHILIPPINE FISHERIES DEVELOPMENT AUTHORITY (PFDA) as represented by Mr. PETRONILO B. BUENDIA in his capacity as General Manager of PFDA, with official address at PCA Annex Bldg., Eliptical Rd., Diliman, Quezon City; WITNESSETH: WHEREAS, properties of the Philippine Fisheries Development Authority situated at Barangay Dugcal, Camaligan, Camarines Sur, were assessed by the Municipal Assessor of Camaligan, Camarines Sur for real property taxation on July 13-14, 1991; the Notice of Assessment was duly received on December 1991 and became effective on the start of the ensuing year or on January 1, 1992; WHEREAS, the Philippine Fisheries Development Authority filed a protest on the assessment of Real Property Tax with the Local Board of Assessment Appeal invoking the grant of exemption, however, the Local Board of Assessment Appeal denied the petition of the Philippine Fisheries Development Authority in its resolution dated October 15, 2003 with the Reference: Book XII, pp. 187-191 findings that there was no clear and express grant of exemption from said taxes and that the Philippine Fisheries Development Authority is therefore subject to real property tax; WHEREAS, Philippine Fisheries Development Authority tendered payment for the real property taxes from 1992-1996 the Provincial Treasurer’s Office on February 25, 1997 which amounted to SIX HUNDRED FIVE THOUSAND THREE HUNDRED SEVENTY-NINE AND 80/100 (p605,379.80) PESOS, four hundred three thousand seven hundred fifty-seven and 54/100 (P403,757.54) pesos for the basic real property tax and two hundred one thousand six- hundred twenty-two and 26/100 (P201,622.26) pesos for the interests, penalties and charges. Such payment was made under protest; WHEREAS, the real property taxes due for taxable year(s) 1997-2003 has not yet been paid by the Philippine Fisheries Development Authority. Below is the table showing the real property taxes due: Declared Location Total Year Basic Tax SEF Tax TOTAL Owner Assessed Collecti (Php) (Php) (Php) Value bles BFPN Dugcal 6,146,860.00 1997 61,468.60 61,468.60 122,937.20 -do- -do- 6,146,860.00 1998 61,468.60 61,468.60 122,937.20 -do- -do- 6,146,860.00 1999 61,468.60 61,468.60 122,937.20 -do- -do- 6,146,860.00 2000 61,468.60 61,468.60 122,937.20 -do- -do- 6,146,860.00 2001 61,468.60 61,468.60 122,937.20 -do- -do- 6,146,860.00 2002 61,468.60 61,468.60 122,937.20 -do- -do- 6,146,860.00 2003 61,468.60 61,468.60 122,937.20 GRAND TOTAL: 860,560.40 WHEREAS, Philippine Fisheries Development Authority appealed the decision of the Local Board of Assessment Appeal to the Central Board of Assessment Appeal and the case is still pending before the said board; WHEREAS, the parties have agreed to settle the issue amicably; WHEREAS, in consideration of the foregoing facts, the conditions and provisions are hereinafter set forth and the parties hereby agree as follows: 1. The real property tax collectible for 1997-2003 amounting to eight hundred sixty thousand five hundred sixty and 40/100 (P860,560.40) pesos, the components of which are shown in the foregoing table, shall be paid by the Philippine Fisheries Development Authority within a maximum period of one (1) year from date of signing for twelve (12) equal monthly installments; 2. The Philippine Fisheries Development Authority shall, henceforth, pay the real property tax collectible for the current taxable year as scheduled, otherwise, the same shall be subject to the usual penalties and charges for delayed payments; 3. Upon the signing of this agreement, Philippine Fisheries Development Authority shall withdraw the protest on the payment made on February 25, 1997 amounting to Six Hundred Five Thousand Three Hundred Seventy Nine and 80/100 (P605,379.80) Pesos, covering the 1992-1996 real property tax collectible including its interests, penalties and charges; 4. The Central Board of Assessment Appeals shall be furnished with a copy of this Memorandum of Agreement for appropriate action. IN WITNESS WHEREOF, we have hereunto set our hands this 14th day of August, 2004 at Camaligan, Camarines Sur. PHILIPPINE FISHERIES DEVELOPMENT AUTHORITY PROVINCE OF CAMARINES SUR By: By: PETRONILO B. BUENDIA LUIS RAYMUND F. VILLAFUERTE, JR. General Manager Governor Reference: Book XII, pp. 187-191 ____________________ ____________________ Witness Witness ACKNOWLEDGMENT REPUBLIC OF THE PHILIPPINES) PROVINCE OF CAMARINES SUR) S.S. MUNICIPALITY OF CAMALIGAN ) BEFORE ME, Notary Public, and in the Province of Camarines Sur, personally appeared. LUIS RAYMUND F. VILLAFUERTE, Jr. with Community Tax Certificate No. 03114802 issued at Pili, Camarines Sur on January 6, 2004 and PETRONILO B. BUENDIA with Community Tax Certificate No. 661-260400962192 issued on March 21, 2004 at Quezon City, both known to me and to me known to be the same persons who executed the foregoing instrument, consisting of three (3) pages including this page where this acknowledgment is written and they acknowledged to me that the same is their free and voluntary act and deed. WITNESS MY HAND AND SEAL this 14TH day of August, 2004 at Pili, Camarines Sur. ATTY. CELESTINA M. MANLAGÑIT-TAM Notary Public Doc. No. 949 Until Dec. 31, 2004 Page No. 191 PTR NO. 0537465 Book No. I IBP NO. 604409 Series of 2004 Reference: Book XII, pp. 187-191 .
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