Bureau of Local Government Finance Opinion

March 26, 2012 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Engineer Mario V. Badillo City Assessor Makati City Sir : This has reference to your letter dated February 8, 2012, requesting opinion from this Bureau as to the propriety of the argument raised by the Philippine National Red Cross as represented by their Director for Administration Mr. Paul Gwyn L. Pagaran in his letter dated January 11, 2012. Mr. Pagaran states that their property located at Estrella St. Brgy. Guadalupe Viejo, Makati City covering an area of 6,000 sq.m. and is covered by Transfer Certificates of Title (TCT) No. 75862, is exempt from the payment of real property tax. AaCEDS Mr. Pagarans' letter is anchored on BLGF Memorandum Circular No. 17-2011, which states that, all real properties of PRC, wherever situated, regardless of its use, shall be exempt from the payment of real property tax . Contrary thereto, It is your representation that the subject property allegedly owned by PRC is registered under S.C. Johnson & Son (Phils), Inc., a multi-national company, as evidenced by a copy of TCT No. 75862, which was presented to this Bureau, and that the same is being utilized by the said company as their office and factory for the production of their products. Thus, it is your contention that since ownership and use of the said property is enjoyed by S.C. Johnson, a taxable entity, the same is, therefore, subject to real property tax. In your letter dated December 1, 2011, in citing BLGF Memo Circular, we clarified our stand that the real properties owned by PRC, wherever situated, regardless of its use, shall be exempt from the payment of real property tax. Therefore, to determine if the subject real property falls under the exempt category as alleged by PRC, then require them to produce the necessary documents to prove ownership over the said property, if they can provide the same then the property falls under the exempt category as provided for under R.A. 10072, otherwise known as the Philippine Red Cross Act of 2009. Meanwhile, while ownership and use is attributable to S.C. Johnson, which is a taxable entity, then that city may impose real property tax on the subject property. For your guidance and information. Very truly yours, (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director