BIR Ruling

August 18, 1967 The Acting Revenue Director Revenue Region No. 17 Central Mindanao Cagayan de Oro City Attention: Andres Relampagos Chief, Assessment Branch S i r : This has reference to your letter dated July 11, 1967 bearing on the amusement tax assessed against Iligan City, involving the amount of P10,425.00, covered by demand letter dated January 22, 1964. Information is sought whether or not the City of Iligan could be sued and, in the same proceeding, whether or not the Municipal Board could be compelled to appropriate money to pay the aforesaid tax liability. prcd In reply thereto, you are hereby informed as follows: (1) Under Republic Act No. 525, an Act creating the City of Iligan, it is provided under Sec. 4 of said Act, viz: "Sec. 4. . . . It may take, purchase, receive, hold, lease, convey, and dispose of real and personal property for the general interest of the city, condemn private property for public use, contract and be contracted with sue and be sued , prosecute and defend to final judgment and execution wherein the city is a party . . . " (Emphasis supplied) As a general rule, the Government cannot be sued without its consent, which must be manifested by special act of Congress. Local Subdivisions, as provinces and municipalities, can, of course, sue and be sued, as indeed expressly provided by law. (Malcolm and Laurel, Philippine Constitutional Law, 3rd Ed., p. 195) (2) As to whether or not the Municipal Board could be compelled to appropriate money to pay the tax liability is beside the point. The fact is, if judgment is secured against the City of Iligan, execution necessarily follows and satisfaction thereof secured on the strength of legal processes. Action for collection should be take against Iligan City, not against the Municipal Board. prll Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue