Camp John Hay Development Corporation (CJHDC) vs.

Central Board of Assessment

Appeals (CBAA)
G.R. No. 169234 October 2, 2013
Perez, J.
Facts:
The City Assessor of Baguio City, respondent, notified petitioner Camp John Hay
Development Corporation about the issuance of 36 Owner’s Copy of Assessment of Real Property
(ARP) covering various buildings and 2 parcels of land which were owned and leased by the
petitioner.
Petitioner questioned the assessments for lack of legal basis due to the City Assessor’s
failure to identify the specific properties and its corresponding values. Petitioner filed with Board
of Tax Assessments Appeals (BTAA) an appeal challenging the validity and propriety of the
issuances of City Assessor. They claimed that there was no legal basis for the issuance of the
assessments because it was allegedly exempted from paying taxes, national and local, pursuant to
Bases Conversion and Development Act.
In a resolution, BTAA enjoined petitioner to first comply with the Rules of Procedure
before the LBAA, particularly to the payment under protest of the subject property taxes before
the hearing of its appeal. Subsequently, Petitioner elevated the case before the Central Board of
Assessment Appeals (CBAA) which denied petitioner’s appeal and remanded the case to LBAA
for further proceedings.
Petitioner appealed to the CTA en banc however, CTA found that the petitioner has indeed
failed to comply with Section 252 of the LGC of 1991 hence it dismissed the petition and affirmed
the resolution of CBAA.
Hence, petitioner elevated its cause to the SC arguing that section 252 of LGC does not
apply when the person assessed is tax-exempt entity.
Issue:
Whether or not CTA en banc erred in dismissing for lack of merit and accordingly affirmed
the order of the CBAA to remand the case to the LBAA for further proceedings subject to a full
and up-to-date payment of realty taxes.
Ruling:
The petition is denied for lack of merit.
Section 252 of LGC of 1991 provides that “ xxx No protest shall be entertained unless the
taxpayer first pays the tax xxx”
Section 252 emphatically directs that the taxpayer questioning the assessment should first
pay the tax due before his protest can be entertained. Payment of the tax assessed under protest, is
an essential condition before a protest or an appeal questioning the correctness of an assessment
of real property tax may be entertained.
This restriction upon the power of the courts to impeach tax assessment without prior
payment, under protest, of the taxes assessed is consistent with the doctrine that taxes are lifeblood
of the nation and as such their collection cannot be curtailed by injunction or any like action;
otherwise, the state, or in this case the LGU, shall be crippled in dispensing the needed services to
the people.