Tax court refuses to rule on Ifugao realty tax tiff with NIA

By Jun Ramirez

The Court of Tax Appeals (CTA) has refused to decide on the petition of the National Irrigation Administration (NIA) to stop the provincial government of Ifugao from imposing real property tax on its infrastructure.

In a 17-page resolution issued recently, the CTA en banc said it has no authority to decide the case but the regional trial court (RTC).

Court records showed NIA elevated the case to the CTA after getting adverse ruling from the Local Board of Assessment Appeals (LBAA) and later from the Central Board Assessment Appeals (CBAA).

Both the assessment boards required the NIA to pay real property taxes (RPT) amounting to R13 million for 2010 for its dams, canals and buildings located in the province which are part of the Magat waterway that irrigates wide areas in Central Luzon.

The boards said other government-owned and controlled corporations (GOCC) like the National Food Administration (NFA) and the Philippine Tourism Authority (PTA) have been paying RPT to the local government.

But the NIA insisted that it is not a GOCC but part of the government domain and is, thus, exempted from RPT.

In dropping the case, the CTA said the proper forum to decide the case is the RTC as it involved a question of law and not the legality and validity of a tax assessment.