DOJ Opinion No. 053, s. 1996

DOJ OPINION NO. 053 , s. 1996 May 21, 1996 Mr. Guido A. Delgado President National Power Corporation Metro Manila Regional Center 161 Bonifacio Drive Port Area, Manila Sir : This has reference to your request for a legal opinion concerning the alleged tax liabilities of FELS Energy Inc.(FELS)/National Power Corporation (NPC) per Tax Declaration No. 018-00-958 issued by the Batangas Provincial Assessor. You state that on January 8, 1993, NPC and Polar Energy, Inc. (POLAR) entered into an Energy Conversion Agreement (ECA) whereby the latter undertook to construct and provide the former with three (3) brand-new diesel engine power barges which shall generate electricity for NPC; that the contract was subsequently assigned by POLAR to FELS Energy, Inc. (FELS); that on August 7, 1995, the Provincial Assessor of Batangas issued FELS real property tax assessment on its barges; that under the ECA, NPC "shall be responsible for the payment of . . . all real estate taxes and assessments, rates and other charges in respect of the Power Barges", hence, FELS referred the matter to the NPC; that admitting its responsibility under the agreement, NPC wrote the Provincial Assessor a request for reconsideration on the ground that barges which are classified by the Philippine Coast Guard as floating equipment" are personal properties not subject to realty taxation; and that said request for reconsideration was, however, denied by the Provincial Assessor on the ground that "subject barges are machineries under Section 199(o) of Republic Act 7160 (Local Government Code of 1991), thus, the imposition of real property taxes is in order." Specifically, you want to be clarified on the following: "1. Whether the subject power barges are real property; and 2. If so, whether a real property tax can be imposed on them considering the provisions of the Local Government Code." With regret, we cannot with propriety render the desired opinion because the matter would inevitably involve a review of the tax assessment by a Provincial Assessor over whose actuation this Department possesses no revisory authority. Section 226 of the Local Government Code of 1991 expressly provides: "Any owner or person having legal interest in the property who is not satisfied with the action of the provincial, city or municipal assessor in the assessment of his property may, within sixty (60) days from the date of receipt of the written notice of assessment, appeal to the Board of Assessment Appeals of the province or city by filing a petition under oath in the form prescribed for the purpose, together with copies of the tax declarations and such affidavits or documents submitted in support of the appeal." cdlex As a matter of propriety and official courtesy, the Secretary of Justice does not pass upon matters falling within the official cognizance of another office or agency, over whose rulings and actuations this Department has no revisory authority (Secretary of Justice Ops. No. 97, s. 1987 and no. 28, s. 1981). Very truly yours, (SGD.) TEOFISTO T. GUINGONA, JR. Secretary