BIR Ruling [DA-313-04]

June 8, 2004 BIR RULING [DA-313-04] BIR Ruling No. 129-99 Office of the Governor 2/F, Bulacan Provincial Capitol Bldg. MacArthur Hi-way, Malolos Bulacan Attention: Gov. Josefina M. Dela Cruz Gentlemen : This refers to your letter dated June 24, 2002 requesting exemption of one of your provincial government's projects from government taxes. It is represented that the Provincial Government of Bulacan (PGB) is currently undertaking one of its flagship projects, the Satellite Based Geographic Information System; that this project aims to enhance the management, planning and monitoring capabilities of the provincial government by providing a tool in meeting long-term strategic planning and management challenges; that components of this project include the procurement of digital satellite image of the whole province; enhancement of input and conversion of existing digital vector data to the intended GIS format and edit and match these following the base layer provided by the aforementioned GIS satellite image; and, the establishment of a GIS Center that would contribute to a more rational approach to the development and implementation of a province-wide GIS by providing up-to-date and accurate geographic data to planners, users of land-based information, developers of GIS-based applications, and decision-makers of the province; that the initial application of the system would be on real property tax enhancement; that the system would generate spatial data that will be linked on your existing Real Property Tax Information System (RPTIS) that is expected to clean-up your records and provide fair assessments and taxation on real properties in Bulacan as well as an increase in your revenue to further improve the services you offer to your constituents; that this project would cost the Provincial and Municipal/City Governments of Bulacan Fifty Two Million Pesos (PhP52M); that the local chief executives of your province took the heart and conviction out of limited resources to push this project to completely reform bureaucracy for the benefit of your people; and that the additional charges would mean so much for you. In reply, please be informed that tax exemptions are highly disfavored in law and are construed in strictissimi juris against the taxpayer. He who claims an exemption must be able to justify his claim by the clearest grant of organic law or statute. IHDCcT For this reason, our hands are tied and we are therefore constrained to deny your request for exemption from the payment of government taxes considering that your alleged problem cannot legally support your request for exemption under either the Tax Code of 1997 or other laws. Your only recourse, we are afraid, is with the Congress of the Philippines. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal & Inspection Group