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