Bureau of Local Government Finance Opinion

June 13, 2000 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully referred to the City Assessor, Laoag City, the attached letter dated April 4, 2000 of the City Treasurer thereat, requesting opinion/ruling on the taxability of the real properties of Intercontinental Broadcasting Corporation (IBC) located at Barangay 43-A Cabungaan North, that city. It appears that the said City Treasurer thereat, thru his Local Revenue Collection Officer sent a Statement of Real Property Tax Delinquencies due on the real properties of IBC for calendar years 1985 to 1990 and 1991 to 1999 demanding the payment of real property taxes amounting to P361,854.73. The President/General Manager of IBC, contends that the ownership on the subject property of IBC was transferred to the Republic of the Philippines as early as November, 1990, and therefore, it is considered exempt from the payment of real property taxes beginning said date under Section 234(a) of R.A. No. 7160, otherwise known as the Local Government Code of 1991. Moreover, the Legal Counsel of IBC, in her letter dated March 28, 2000, submitted that IBC is not a government-owned and controlled corporation as defined under PD 2029. Only its assets such as the Broadcast City lot and all the provincial lots as well as all the facilities for its TV and radio operations were ceded to the Republic of the Philippines. She also added that IBC retains its corporate personality as a private mass media corporation organized under the Corporation Code although its designated assets were ceded to the government because Mr. Roberto S. Benedicto executed a Deed of Confirmation stating that he owns the said assets. It is informed also that, Mr. Benedicto could not cede the equity of IBC to the government for reason that he is not a stockholder of IBC. cECTaD In this connection, and in order that appropriate action could be taken on the subject matter, that Office is hereby requested to submit to this Bureau within ten (10) from receipt hereof its full comment and/or recommendation together with the following: 1. Certified true copies of previous and current tax declarations/FAAS of the subject real properties of IBC; and 2. Other relevant documents that could help in resolving the issue. (SGD.) ANGELINA M. MAGSINO Deputy Executive Director Officer-in-Charge