Bureau of Local Government Finance Opinion

June 27, 2012 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Mr. Roberto R. Flores President S. D. Flores Construction Co., Inc. 10th Flr. Salcedo Towers 109 H.V. dela Costa St. 1227 Salcedo Village, Makati City Sir : This refers to your letter dated June 6, 2012, in effect requesting the cancellation of Tax Declaration (TD) Nos. AN-016-12258 and AC-016-12593 issued in favor of Ms. Julieta Aguja and Soledad S. Sakamoto, respectively, on the real properties (land and building) situated along Sumulong Highway, Dela Paz, Antipolo City. aITECA The said request was made in view of the following contentions: 1. The Offices of the City Assessor and the City Treasurer of Antipolo City have been assessing and collecting real property tax on the subject properties which, "is still part of the public domain, hence not subject to assessment." 2. To continue collecting the said tax, "would abet fraud and hamper the efforts of the Republic of the Philippines to recover the said parcel of land." Likewise submitted together with a copy of DENR Notice of Resolution, are the following information: 1. "Julieta Aguja was able to acquire the subject property (land) thru deceitful and fraudulent means. She was able to successfully apply for the title by making untruthful statements in her application for free patent." 2. "The DENR has directed that cancellation proceedings against the said Free Patent No. 045802-98-3453 and Original Certificate of Title (OCT) No. P-1028 issued in the name of Julieta Aguja be instituted." 3. "The office of the Solicitor General has instituted a complaint for Cancellation of Patent/Title and Reversion entitled "Republic of the Philippines rep. by the Regional Executive Director, DENR Region IV-Calabarzon vs. Julieta Aguja" before Branch 74 of the Regional Trial Court of Antipolo City and docketed therein as Civil Case No. 08-8523." In this connection, attention is invited to Local Assessment Opinion No. 1-81 of the then Ministry of Finance dated February 19, 1982, copy enclosed, which provides in part, as follows: "It must be remembered that issuance of the "Tax Declaration "is for taxation purposes only . The "Tax Declaration" DOES NOT and CANNOT, alone by itself, confer any legal title of ownership in fee simple to the declarant/assessee over the properties covered thereby unlike the "Certificate of Title" issued by the Register of Deeds in accordance with the Torrens System prevailing in our jurisdiction with the enactment of Act 496, otherwise known as the "Land Registration Act" which is the very " evidence of ownership " itself. The primary function of the "Tax Declaration is to serve as documentary "evidence of taxability" of real property covered thereby . AaITCH " Issuance of the tax declaration by the Assessor concerned to the proper party, in conformity with the provision of the governing law on realty taxation, i.e., previously, C.A. 470, otherwise known as the Assessment Law and presently, by the Real Property Tax Code, PD 464, as amended, which became effective on June 1, 1974, and/or in accordance with the legal pronouncement of the proper courts of Justice is a mere ministerial act as these officers have no power to adjudicate, his office being NEITHER a court of justice NOR a property registry "but simply an office for collection of land tax." (Carao vs. Jose Riosa Boyco, 29 PHIL. 437.) Questions on "ownership over lands" are ventilated in, and finally resolved by, the proper courts of justice, where the adverse claimants may later resort to, as when the proceedings in court for the "titling" of subject properties is had. " Clearly, issuance of tax declaration is purely ministerial act of the assessors, for real property taxation purposes. Questions on ownership over lands, like in the instant case, are indeed ventilated to the court of competent jurisdiction for proper resolution. Further, Section 205 (d) of R.A. No. 7160, also known as the Local Government Code (LGC) of 1991 , which is quoted below: "SEC. 205. Listing of Real Property in the Assessment Rolls . (a) . . . . "xxx xxx xxx. "(d) Real property owned by the Republic of the Philippines , its instrumentalities and political subdivisions, the beneficial use of which has been granted, for consideration or otherwise, to a taxable person, shall be listed, valued and assessed in the name of the possessor , grantee or of the public entity if such property has been acquired or held for resale or lease." (Underlining Supplied) Evidently, lands owned by the Republic of the Philippines, the beneficial use of which have been granted for consideration or otherwise, to a taxable person, shall be listed, valued and assessed in the name of the possessor, hence, becomes taxable including the improvements erected therein pursuant to Section 234 (a) of the LGC. TcaAID In view hereof, we find the issuance of tax declaration by the City Assessor's Office of Antipolo in order, since it appears that, as submitted, the fraudulent acts were committed at the time of its application for free patent. To discontinue the collection of real property taxes due on the subject land and improvement prior to the decision of the proper judiciary would likewise be detrimental to Antipolo City, the real property being the lifeblood of the LGUs. In view of the foregoing, it is regretted that this Bureau cannot as yet, appropriately act on your abovementioned request, until the RTC-Branch 74 of Antipolo City render its decision in the abovementioned civil case being sub-judice. Very truly yours, (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director