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MIAA Vs CA, G.R. No. 155650, July 20, 2006 Facts
MIAA Vs CA, G.R. No. 155650, July 20, 2006 Facts
ISSUE:
Whether or not Airport Lands and Buildings of MIAA are exempt from real estate tax under
existing laws.
RULING:
Yes. Ergo, the real estate tax assessments issued by the City of Parañaque, and all proceedings
taken pursuant to such assessments, are void.
1. MIAA is Not a Government-Owned or Controlled Corporation
MIAA is not a government-owned or controlled corporation but an instrumentality of the
National Government and thus exempt from local taxation.
MIAA is not a stock corporation because it has no capital stock divided into shares. MIAA has
no stockholders or voting shares.
MIAA is also not a non-stock corporation because it has no members. A non-stock corporation
must have members.
MIAA is a government instrumentality vested with corporate powers to perform efficiently its
governmental functions. MIAA is like any other government instrumentality, the only difference
is that MIAA is vested with corporate powers.
When the law vests in a government instrumentality corporate powers, the instrumentality does
not become a corporation. Unless the government instrumentality is organized as a stock or non-
stock corporation, it remains a government instrumentality exercising not only governmental but
also corporate powers. Thus, MIAA exercises the governmental powers of eminent domain,
police authority and the levying of fees and charges. At the same time, MIAA exercises “all the
powers of a corporation under the Corporation Law, insofar as these powers are not inconsistent
with the provisions of this Executive Order.”