Republic of the Philippines
CENTRAL BOARD OF ASSESSMENT APPEALS 7th Floor, EDPC Building, BSP Complex Roxas Boulevard, Manila
MANILA ELECTRIC COMPANY, (“MERALCO”), Petitioner-Appellant,
– versus –
LOCAL BOARD OF ASSESSMENT CBAA CASE NO. L-41 APPEALS OF BATANGAS CITY,
Appellee,
– and –
CITY ASSESSOR AND CITY TREASURER OF BATANGAS,
Respondents-Appellees. x – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – x
D E C I S I O N
The parties in this appeal, Petitioner-Appellant Manila Electric Company
(MERALCO) represented by Counsel Gil S. San Diego, and Respondents-
Appellees Benjamin Pargas and Emerlinda Atienza, City Assessor and City
Treasurer respectively of Batangas City, jointly manifested before this Board
their agreement to settle the above-entitled case amicably by submitting a
“Compromise Agreement” and praying that the same be approved and that
judgment, be rendered on the basis of said agreement.
The proposed agreement is faithfully reproduced as follows:
COMPROMISE AGREEMENT
COME NOW, the parties, MANILE ELECTRIC COMPANY (Meralco),
represented by ATTY. GIL S. SAN DIEGO and MR. BENJAMIN PARGAS, City
Assessor and MS. EMERLINDA ATIENZA, City Treasurer of Batangas City, to
buy peace and end litigation, respectfully manifest that they have agreed on the
complete settlement of the above-entitled case and have in fact settled the
above-captioned case, in the following manner:
Reference: Book XII, pp. 62-65
1. The instant case arose when in 2001 the City Assessor of
Batangas City assessed the following properties of Meralco, located at Mt.
Banoy, Batangas, with the following valuation:
PROPERTY
Trunked Radio Tower
SR 500 Microwave Repeater 30.5 Meter Triangular Tower Genset
Total
MARKET VALUE (MV)
Php2,034,286 Php1,671,428 Php1,106,000 Php 467,510
Php5,279,224
Kind of Property MV Assessment Level
Assessed RPT Value Due
Machineries Php5,279,224 80% Php4,223,380.00 Php105,584.50
2. Due to the above assessment, Meralco paid the tax under protest
in 2002. Likewise, it paid under protest the same amount in 2003 and 2004.
3. For purpose of this compromise agreement but without necessarily
admitting liability, the parties hereby agree that the valuation of the above-
mentioned properties shall be subject to 5% depreciation per annum pursuant
to Section 225 of the Local Government Code, beginning taxable year 2003.
Accordingly, the valuation of the subject properties as well as the taxes due for
the taxable year 2003 and 2004 should be as follows:
Taxable
Year Valuation Tax Due Tax Paid Overpayment
2003 Php5,015,281.80 Php100,305.63 Php105,584.50 Php5,278.87
2004 Php4,513,702.90 Php 90,275.25 Php105,584.50 Php15,309.20
4. It is further agreed that the “payments under protest” made by
Meralco for 2002, 2003, and 2004 shall now be considered as regular payments
of the taxes due for the corresponding year, with the excess payments
determined in the immediately preceding paragraph applied to its future tax
liability, if any.
WHEREFORE, it is respectfully prayed to this Honorable Board that the
foregoing compromise agreement submitted by the parties, duly assisted by
Reference: Book XII, pp. 62-65
their respective counsel, be approved and that the Honorable Board renders
judgment on the basis thereof.
Respectfully submitted. September 25, 2004.
MANILA ELECTRIC COMPANY (Plaintiff-Appellant)
Original Signed BENJAMIN PARGAS
Original Signed EMELINDA ATIENZA (Respondents-Appellees)
Represented by:
Original Signed GIL S. SAN DIEGO Vice-President &
Head, Legal Services
Assisted by:
Original Signed MAILA R. NICOLASORA
Counsel for Plaintiff-Appellant 8th Flr., Lopez Building
Ortigas Ave., Pasig City PTR No. 0396468; 01/06/04 IBP No. 601719; 12/22/03 Quezon City Chapter
Roll No. 45082
Original Signed TEODULFO A. DEQUITO
Counsel for Respondents-Appellees City Legal Officer
City Hall, Batangas
After a careful study and analysis of the proposed agreement, it is the
finding of this Board that the same is in accordance with law, not contrary to
morals and public policy, fair and equitable, and not vitiated by fraud nor duress,
hence merits our approval.
WHEREFORE, the Compromise Agreement is hereby approved, the
decision of the LBAA of Batangas City is modified to conform with the
Compromise Agreement set forth above and respondent City Assessor is
hereby directed to revise the assessments under appeal in accordance
therewith.
SO ORDERED.
Manila, Philippines, October 10, 2004.
Reference: Book XII, pp. 62-65
(Signed) CESAR S. GUTIERREZ
Chairman
(Signed)
ANGEL P. PALOMARES Member
(Signed) RAFAEL O. CORTES
Member
Reference: Book XII, pp. 62-65