Bureau of Local Government Finance Opinion

July 4, 2001 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 3rd Indorsement Respectfully returned, thru the BLGF ICO-Regional Director, Caraga Administrative Region, 2/F Aguilar Bldg., Pili Drive, Butuan City, to the OIC-City Treasurer, Surigao City. This refers to the request of the said OIC-City Treasurer for opinion as to the legality and propriety of their collection of the real property taxes against the SMART Communications, Inc. It appears that the abovementioned request is being made in view of the payment under protest made by SMART for their real properties (machineries) located in Washington, Surigao City, in the amount of P126,815.92, since SMART is claiming real property tax exemption pursuant to the so-called " ipso facto " provision of Section 23 of R.A. No. 7925, "An Act to Promote and Govern the Development of Philippine Telecommunications and the Delivery of Public Telecommunications Services." TAHIED In this connection, attention is invited to our 1st Indorsement dated May 22, 2001, copy enclosed, treating on a similar subject matter, which ruled on the restoration of the exemption privileges of telecommunication companies, like SMART, despite the withdrawal of exemption provisions under Section 234 of R.A. No. 7160, the Local Government Code of 1991. (SGD.) BENJAMIN A. GERONIMO Executive Director