Levy of Property for Tax Delinquency by the Local Government of Parañaque

DOJ OPINION NO. 098 , s. 2012 November 5, 2012 Atty. Lino C. Sandil City Council Secretary Office of the City Council Secretary City of Paraaque Dear Atty. Sandil : This refers to your request for opinion on the queries stated therein relating to the levy of property for tax delinquency by the local government of Paraaque. Specifically, you pose the following questions: 1. Whether or not the City of Paraaque can legally levy a property under receivership and rehabilitation proceedings in the Securities and Exchange Commission? 2. Considering that the title of the property still remains with the owner, can the owner just pay the taxes due plus interest and surcharges? and 3. In the event that the City is able to sell the said property, do you have to return over the excess amount to the owner after deducting the taxes due thereon? It appears that the owner of the subject property questioned the levy in court as it is under receivership and rehabilitation proceedings in the Securities and Exchange Commission. We are constrained, much to our regret, to decline to render the opinion requested. By settled policy and practice, the Secretary of Justice does not render opinion or give legal advice on matters which are sub judice or pending litigation in court. 1 To rule on the query would be an unwarranted intrusion into the exercise of the judicial powers and functions pertaining to the Supreme Court or a separate and coordinate branch of government and could subject this Office to criticism for violation of the independence of the judiciary. 2 Nonetheless, for your information and guidance only , the law on the matter, Paragraph (c), Section 6 of Presidential Decree 902-A, provides: "Sec. 6. In order to effectively exercise such jurisdiction, the Commission shall possess the following powers: xxx xxx xxx c) To appoint one or more receivers of the property, real and personal, which is the subject of the action pending before the Commission in accordance with the pertinent provisions of the Rules of Court in such other cases whenever necessary to preserve the rights of the parties-litigants to and/or protect the interest of the investing public and creditors; Provided, however, that the Commission may, in appropriate cases, appoint a rehabilitation receiver of corporations, partnerships or other associations not supervised or regulated by other government agencies who shall have, in addition to the powers of a regular receiver under the provisions of the Rules of Court, such functions and powers as are provided for in the succeeding paragraph (d) hereof: Provided, finally, That upon appointment of a management committee, rehabilitation receiver, board or body, pursuant to this Decree , all actions for claims against corporations, partnerships or associations under management or receivership pending before any court, tribunal, board or body shall be suspended accordingly." (Emphasis supplied) While Sections 260, 261 and 263, Chapter 6, Title II, Book II of Republic Act No. 7160 entitled "An Act Providing for a Local Government Code of 1991" pertinently provide, to wit: "SEC. 260. Advertisement and Sale. ... Provided, however, That proceeds of the sale in excess of the delinquent tax, the interest due thereon, and the expenses of sale shall be remitted to the owner of the real property or person having legal interest therein. The local treasurer may, by ordinance duly approved, advance an amount sufficient to defray the costs of collection thru the remedies provided for in this Title, including the expenses of advertisement and sale. (Emphasis supplied) "SEC. 261. Redemption of Property Sold. Within one (1) year from the date of sale, the owner of the delinquent real property or person having legal interest therein, or his representative, shall have the right to redeem the property upon payment to the local treasurer of the amount of the delinquent tax, including the interest due thereon, and the expenses of sale from the date of delinquency to the date of sale, plus interest of not more than two percent (2%) per month on the purchase price from the date of sale to the date of redemption. ...(Emphasis supplied) "xxx xxx xxx "SEC. 263. Purchase of Property by the Local Government Units for Want of Bidder. .... Within one (1) year from the date of such forfeiture, the taxpayer or any of his representative, may redeem the property by paying to the local treasurer the full amount of the real property tax and the related interest and the costs of sale. If the property is not redeemed as provided herein, the ownership thereof shall be fully vested on the local government unit concerned. (Emphasis supplied) Please be guided accordingly. Very truly yours, (SGD.) LEILA M. DE LIMA Secretary Footnotes 1. Secretary of Justice Op. No. 173, s. 1991; No. 34, s. 1992. 2. Ibid., Op. No. 14, s. 1989.