Bureau of Local Government Finance Opinion

July 20, 2006 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Mr. Cesar I. Valenzuela President Titan Resources Corporation Fortune Building, Legaspi St. Legaspi Village, Makati City S i r: With reference to our letter dated July 12, 2006 relative to your request for assistance concerning the alleged insistence of the City Treasurer of Pasay City to collect the real property tax due on the parcel of land acquired by that corporation from the Philippine Estates Authority (PEA) on October 29, 1996, attached is a copy of the letter dated June 30, 2006 of the City Treasurer of Pasay City submitting the following information, viz. : 1. The City Treasurer's Office of Pasay City accepted the real property tax payment of Manila Doctor's College corresponding to the portion of the subject parcel of land they already acquired from Titan Resources Corporation, on the condition that no tax clearance be issued until the tax due on the remaining portions which remain in the name of the said corporation is paid; 2. Allegedly, you sent feelers that you would finally pay/settle in full the real property tax due on the portions of the subject parcel of land which remain in the name of Titan Resources Corporation, under a compromise agreement; and 3. The said compromise agreement has the following features and effects: DSAICa a) It lightens the burden of the taxpayer in paying the delinquency because payment becomes staggered. b) It tolls the running of interest and penalties at the time the agreement is signed. c) The City Treasurer's Office offers a six (6) month period within which to pay the delinquency. d) It can be entered into provided the current year's taxes are paid. e) That 50% of the delinquent taxes shall be paid, and the balance equivalent to the other 50% be paid within six (6) months. It is with deep regret that the above update was not brought to the attention of the undersigned when the letter dated July 12, 2006 was forwarded to your end. Hence, this level requests your indulgence for the oversight. Be that as it may, considering the abovementioned proposal to enter into a compromise agreement, it is advised that coordination be made with the City Treasurer's Office of Pasay City for the speedy disposition of your concern. Thank you. Very truly yours, (SGD.) MA. PRESENTACION R. MONTESA Executive Director