G.R No. 187167 August 16, 2011 2.

Whether the writs of certiorari and undermining Philippine sovereignty and

prohibition are the proper remedies to assail national security, contravening the country's
PROF. MERLIN M. MAGALLONA, the constitutionality of RA 9522. nuclear-free policy, and damaging... marine
AKBAYAN PARTY-LIST REP. RISA resources, in violation of relevant
HONTIVEROS, PROF. HARRY C. ROQUE, 2. On the merits, whether RA 9522 is constitutional provisions.
JR., AND UNIVERSITY OF THE unconstitutional.
PHILIPPINES COLLEGE OF LAW In addition, petitioners contend that RA
STUDENTS, ALITHEA BARBARA ACAS, The Ruling of the Court 9522's treatment of the KIG as "regime of
VOLTAIRE ALFERES, CZARINA MAY islands" not only results in the loss of a
ALTEZ, FRANCIS ALVIN ASILO, SHERYL On the threshold issues, we hold that (1) large maritime area but also prejudices the
BALOT, RUBY AMOR BARRACA, JOSE petitioners possess locus standi to bring livelihood of subsistence fishermen.
JAVIER BAUTISTA, ROMINA BERNARDO, this suit as citizens and (2) the writs of
VALERIE PAGASA BUENAVENTURA, certiorari and prohibition are proper petitioners facially attack RA 9522 for what
EDAN MARRI CAÑETE, VANN ALLEN remedies to test the constitutionality of RA it excluded and included - its failure to
DELA CRUZ, RENE DELORINO, PAULYN 9522. On the merits, we find no basis to reference either the Treaty of Paris or
MAY DUMAN, SHARON ESCOTO, declare RA 9522 unconstitutional. Sabah and its use of UNCLOS III's
RODRIGO FAJARDO III, GIRLIE FERRER, framework of regime of islands to determine
On the Threshold Issues the maritime zones of the KIG and the
RAOULLE OSEN FERRER, CARLA
Petitioners Possess Locus Scarborough Shoal.
REGINA GREPO, ANNA MARIE CECILIA
Standi as Citizens
GO, IRISH KAY KALAW, MARY ANN JOY
LEE, MARIA LUISA MANALAYSAY, respondents defended RA 9522 as the
MIGUEL RAFAEL MUSNGI, MICHAEL country's compliance with the terms of
OCAMPO, JAKLYN HANNA PINEDA, UNCLOS III, preserving Philippine territory
PROF. MERLIN M. MAGALLONA v.
WILLIAM RAGAMAT, MARICAR RAMOS, over the KIG or Scarborough Shoal.
EDUARDO ERMITA, GR No. 187167,
ENRIK FORT REVILLAS, JAMES MARK Respondents add that RA 9522 does not...
2011-08-16
TERRY RIDON, JOHANN FRANTZ undermine the country's security,
RIVERA IV, CHRISTIAN RIVERO, DIANNE Facts: environment and economic interests or
MARIE ROA, NICHOLAS SANTIZO, relinquish the Philippines' claim over Sabah.
MELISSA CHRISTINA SANTOS, CRISTINE In 1961, Congress passed Republic Act No.
3046... demarcating the maritime baselines Petitioners submit that RA 9522
MAE TABING, VANESSA ANNE TORNO,
of the Philippines as an archipelagic State. "dismembers a large portion of the national
MARIA ESTER VANGUARDIA, and
territory"... because it discards the pre-
MARCELINO VELOSO III, Petitioners,
In March 2009, Congress amended RA UNCLOS III demarcation of Philippine
vs.
3046 by enacting RA 9522, the statute now territory under the Treaty of Paris and
HON. EDUARDO ERMITA, IN HIS
under scrutiny. The change was prompted related treaties, successively encoded in
CAPACITY AS EXECUTIVE SECRETARY,
by the need to make RA 3046 compliant the definition of... national territory under
HON. ALBERTO ROMULO, IN HIS
with the terms of the United Nations the 1935, 1973 and 1987 Constitutions.
CAPACITY AS SECRETARY OF THE
Convention on the Law of the Sea Petitioners theorize that this constitutional
DEPARTMENT OF FOREIGN AFFAIRS,
(UNCLOS III),... which the definition trumps any treaty or statutory
HON. ROLANDO ANDAYA, IN HIS
provision denying the Philippines sovereign
CAPACITY AS SECRETARY OF THE Philippines ratified on 27 February 1984. control over waters, beyond the territorial
DEPARTMENT OF BUDGET AND
sea recognized at the time of the
MANAGEMENT, HON. DIONY VENTURA, Among others, UNCLOS III prescribes the
IN HIS CAPACITY AS ADMINISTRATOR water-land ratio, length, and contour of Treaty of Paris, that Spain supposedly
OF THE NATIONAL MAPPING & baselines of archipelagic States like the ceded to the United States. Petitioners
RESOURCE INFORMATION AUTHORITY, Philippines... and sets the deadline for the argue that from the Treaty of Paris'
and HON. HILARIO DAVIDE, JR., IN HIS filing of application... for the extended technical description, Philippine sovereignty
CAPACITY AS REPRESENTATIVE OF THE continental shelf. over territorial waters extends hundreds of
PERMANENT MISSION OF THE nautical miles around the Philippine
REPUBLIC OF THE PHILIPPINES TO THE RA 9522 shortened one baseline, optimized archipelago, embracing the... rectangular
UNITED NATIONS, Respondents. the location of some basepoints around the area delineated in the Treaty of Paris.
Philippine archipelago and classified
DECISION adjacent territories, namely, the Kalayaan Petitioners next submit that RA 9522's use
Island Group of UNCLOS III's regime of islands
CARPIO, J.:
framework to draw the baselines, and to
(KIG) and the Scarborough Shoal, as measure the breadth of the applicable
The Case "regimes of islands" whose islands maritime zones of the KIG, "weakens our
generate their own applicable maritime territorial claim" over that area.
This original action for the writs of certiorari
zones.
and prohibition assails the constitutionality
of Republic Act No. 95221 (RA 9522) Petitioners add that... the KIG's (and
Petitioners, professors of law, law students Scarborough Shoal's) exclusion from the
adjusting the country’s archipelagic and a legislator, in their respective
baselines and classifying the baseline Philippine archipelagic baselines results in
capacities... assail the constitutionality of the loss of "about 15,000 square nautical
regime of nearby territories. RA 9522 on two principal grounds, namely: miles of territorial waters," prejudicing the
(1) RA 9522 reduces livelihood of subsistence fishermen.
Philippine maritime territory, and logically, As their final argument against the validity
The Issues
the reach of the Philippine state's sovereign of RA 9522, petitioners contend that the law
The petition raises the following issues: power, in violation of Article 1 of the 1987 unconstitutionally "converts" internal waters
Constitution,... embodying the terms of the into archipelagic waters, hence subjecting
1. Preliminarily – Treaty of Paris... and ancillary... treaties,... these waters to the right of innocent and
and (2) RA 9522 opens the country's waters sea lanes passage under UNCLOS III,
1. Whether petitioners possess locus landward of the baselines to maritime including overflight.
standi to bring this suit; and passage by all vessels and aircrafts,
Petitioners extrapolate that these passage
rights indubitably expose Philippine internal
waters to nuclear and maritime pollution
hazards, in violation of the Constitution.
Issues:
whether RA 9522 is unconstitutional.
Ruling:
Petitioners' theory fails to persuade us.
UNCLOS III has nothing to do with the
acquisition (or loss) of territory. It is a
multilateral treaty regulating,... sea-use
rights over maritime zones (i.e., the
territorial waters [12 nautical miles from the
baselines], contiguous zone [24 nautical
miles from... the baselines], exclusive
economic zone [200 nautical miles from the
baselines]), and continental shelves that
UNCLOS III delimits.
UNCLOS III was the culmination of
decades-long negotiations among United
Nations members to codify norms
regulating the... conduct of States in the
world's oceans and submarine areas,
recognizing coastal and archipelagic States'
graduated authority over a limited span of
waters and submarine lands along their
coasts.
baselines laws such as RA 9522 are
enacted by UNCLOS III States parties to
mark-out specific basepoints along their
coasts from which baselines are drawn,
either straight or contoured, to serve as
geographic starting points to measure the
breadth of the... maritime zones and
continental shelf. Article 48 of UNCLOS III
on archipelagic States like ours could not
be any clearer:
Article 48. Measurement of the breadth of
the territorial sea, the contiguous zone, the
exclusive economic zone and the
continental shelf. - The breadth of the
territorial sea, the contiguous zone, the
exclusive economic zone and the
continental shelf shall... be measured from
archipelagic baselines drawn in accordance
with article 47. (Emphasis supplied)
Thus, baselines laws are nothing but
statutory mechanisms for UNCLOS III
States parties to delimit with precision the
extent of their maritime zones and
continental shelves. In turn, this gives
notice to the rest of the international
community of the scope of the maritime
space... and submarine areas within which
States parties exercise treaty-based rights,
namely, the exercise of sovereignty over
territorial waters (Article 2), the jurisdiction
to enforce customs, fiscal, immigration, and
sanitation laws in the contiguous zone
(Article 33), and the right... to exploit the
living and non-living resources in the
exclusive economic zone (Article 56) and
continental shelf (Article 77).
Even under petitioners' theory that the
Philippine territory embraces the islands
and all the waters within the rectangular
area delimited in the Treaty of Paris, the
baselines of the Philippines would still have
to be drawn in accordance with RA 9522
because this is the... only way to draw the
baselines in conformity with UNCLOS III.
The baselines cannot be drawn from the
boundaries or other portions of the
rectangular area delineated in the Treaty of
Paris, but from the "outermost islands and
drying reefs of the archipelago."
Petitioners' assertion of loss of "about
15,000 square nautical miles of territorial
waters" under RA 9522 is similarly
unfounded both in fact and law. On the
contrary, RA 9522, by optimizing the
location of basepoints, increased the
Philippines' total maritime... space (covering
its internal waters, territorial sea and
exclusive economic zone) by 145,216
square nautical miles
Extent of maritime area using RA 3046, as
amended, taking into account the Treaty of
Paris' delimitation (in square nautical miles)
Extent of maritime area using RA 9522,
taking into account UNCLOS III (in square
nautical miles)
Internal or archipelagic waters
166,858
171,435
Territorial Sea
274,136
32,106
Exclusive Economic Zone
382,669
TOTAL
440,994
586,210
Thus,... the reach of the exclusive economic
zone drawn under RA 9522 even extends
way beyond the waters covered by the
rectangular demarcation under the Treaty of
Paris. Of course, where there are
overlapping exclusive economic zones of
opposite or adjacent
States, there will have to be a delineation of
maritime boundaries in accordance with
UNCLOS III.
Hence, far from surrendering the
Philippines' claim over the KIG and the
Scarborough Shoal, Congress' decision to
classify the KIG and the Scarborough Shoal
as "`Regime[s] of Islands' under the
Republic of the Philippines consistent with
Article 121"... of
UNCLOS III manifests the Philippine State's
responsible observance of its pacta sunt
servanda obligation under UNCLOS III.
Under Article 121 of UNCLOS III, any
"naturally formed area of land, surrounded
by water, which is above water at high tide,"
such as portions of the
KIG, qualifies under the category of "regime
of islands," whose islands generate their
own applicable maritime zones.
The fact of sovereignty, however, does not
preclude the operation of municipal and
international law norms subjecting the
territorial sea or archipelagic waters to
necessary, if not marginal, burdens in the
interest of maintaining unimpeded,
expeditious international navigation,...
consistent with the international law
principle of freedom of navigation. Thus,
domestically, the political branches of the
Philippine government, in the competent
discharge of their constitutional powers,
may pass legislation designating routes
within the archipelagic waters to... regulate
innocent and sea lanes passage.
Indeed, bills drawing nautical highways for
sea lanes passage are now pending in
Congress.
In the absence of municipal legislation,
international law norms, now codified in
UNCLOS III, operate to grant innocent
passage rights over the territorial sea or
archipelagic waters, subject to the treaty's
limitations and conditions for their exercise.
Significantly, the right of innocent passage
is a customary international law,[43] thus
automatically incorporated in the corpus of
Philippine law.
No modern State can validly invoke its
sovereignty to absolutely... forbid innocent
passage that is exercised in accordance
with customary international law without
risking retaliatory measures from the
international community.
The fact that for archipelagic States, their
archipelagic waters are subject to both the
right of innocent passage and sea lanes
passage... does not place them in lesser
footing vis-à-vis continental coastal States
which are subject, in their... territorial sea, to
the right of innocent passage and the right
of transit passage through international
straits. The imposition of these passage
rights through archipelagic waters under
UNCLOS III was a concession by
archipelagic States, in exchange for their
right to claim all... the waters landward of
their baselines, regardless of their depth or
distance from the coast, as archipelagic
waters subject to their territorial sovereignty.
More importantly, the recognition of
archipelagic States' archipelago and the
waters enclosed by their... baselines as one
cohesive entity prevents the treatment of
their islands as separate islands under
UNCLOS III.
 APCN, while the landing stations or
terminals and Segment E of APCN located
in Nasugbu, Batangas are allegedly owned
by the Philippine Long Distance Telephone
Corporation (PLDT). 6 Moreover, it alleges
that the Wet Segment is laid in
1. Parties: 7. Conclusion:
inten1ational, and not Philippine, waters. 7
Petitioners: University of the Philippines Magallona v. Ermita clarified the legal status
Capwire claims that as co-owner, it does
(UP) College of Law professors, law of the Visiting Forces Agreement (VFA)
not own any particular physical part of the
students, and alumni, led by Dr. Merlin M. between the Philippines and the United
cable system but, consistent with its
Magallona. States. It established that the VFA is an
financial contributions, it owns the right to
executive agreement that does not need
Respondents: Executive Secretary Eduardo use a certain capacity of the said
Senate concurrence and upheld its
Ermita, in representation of the President of systern. 8 This property right is allegedly
constitutionality, emphasizing the
the Philippines and other government reported in its financial books as
importance of diplomatic relations between
officials involved in the negotiation and "Indefeasible Rights in Cable Systems."9
the two nations.
ratification of the Visiting Forces Agreement
However, for loan restructuring purposes,
(VFA).
Capwire claims that "it was required to
2. Statement of Facts: register the value of its right," hence, it
CASE 2 engaged an appraiser to "assess the
The case revolves around the market value of the international submarine
constitutionality of the Visiting Forces cable system and the cost to
Agreement (VFA) between the Philippines G.R. No. 180110 Capwire." 10 On May 15, 2000, Capwire
and the United States, an agreement submitted a Sworn Statement of True Value
concerning the treatment of U.S. military CAPITOL WIRELESS, INC., Petitioner, of Real Properties at the Provincial
personnel visiting the Philippines. vs. Treasurer's Office, Batangas City, Batangas
THE PROVINCIAL TREASURER OF Province, for the Wet Segment of the
Petitioners argue that the VFA infringes BATANGAS, THE PROVINCIAL system, stating:
upon Philippine sovereignty, violates ASSESSOR OF BATANGAS, THE
constitutional provisions, and should be MUNICIPAL TREASURER AND System Sound Value
declared unconstitutional. ASSESSOR OF NASUGBU,
BATANGAS, Respondents.
3. Issues Presented: APCN P203,300,000.00
DECISION
Whether or not the VFA is consistent with
the Constitution. PERALTA, J.: BMP-CNS p 65,662,000.00

Whether or not the VFA requires Senate Before the Court is a petition for review
concurrence. SEA-ME-
on certiorari under Rule 45 of the Rules of
WE-3 P7,540,000.00
Court seeking to annul and set aside the
4. Ruling/Decision: CNSP
Court of Appeals’ Decision1 dated May 30,
2007 and Resolution2 dated October 8,
The Supreme Court upheld the
2007 in CA-G.R. SP No. 82264, which both GP-CNS P1,789,000.00
constitutionality of the VFA.
denied the appeal of petitioner against the
The Court ruled that the VFA does not decision of the Regional Trial Court. Capwire claims that it also reported that the
require Senate concurrence for its validity system "interconnects at the PLDT Landing
Below are the acts of the case.
and effectivity. Station in Nasugbu, Batangas," which is
Petitioner Capitol Wireless Inc. (Capwire) is covered by a transfer certificate of title and
5. Reasoning: tax declarations in the name of PLDT. 11
a Philippine corporation in the business of
The Court held that the VFA is an executive providing international telecommunications
As a result, the respondent Provincial
agreement, which, under international law services. 3 As such provider, Capwire has
Assessor of Batangas (Provincial Assessor)
and Philippine jurisprudence, does not need signed agreements with other local and
issued the following Assessments of Real
Senate concurrence. foreign telecommunications companies
Property (ARP) against Capwire:
covering an international network of
It was argued that the VFA did not derogate
the Philippines' sovereignty, as it merely submarine cable systems such as the Asia Cable
Assessed
provided for procedural mechanisms Pacific Cable Network System (APCN) ARP Syste
Value
regarding the entry of U.S. troops into (which connects Australia, Thailand, m
Philippine territory and the handling of Malaysia, Singapore, Hong Kong, Taiwan,
offenses committed by them. Korea, Japan, Indonesia and the
019-
Philippines); the BruneiMalaysia-Philippines BMP- P52,529,600.0
0096
The Court also considered the significance Cable Network System (BMP-CNS), the CNS 0
7
of maintaining good relations with the PhilippinesItaly
United States, a long-standing ally of the
Philippines. (SEA-ME-WE-3 CNS), and the Guam 019-
Philippines (GP-CNS) systems. 4 The P162,640,000.
0096 APCN
6. Disposition: agreements provide for co-ownership and 00
8
other rights among the parties over the
The Supreme Court dismissed the petition, network. 5
affirming the constitutionality of the Visiting 019- SEA- P:
Forces Agreement (VFA) and ruling that it Petitioner Capwire claims that it is co-owner 0096 ME- 6,032,000.00
does not require Senate concurrence. only of the so-called "Wet Segment" of the 9 WE3-
 CNS
019-
GP- P:
0097
CNS 1,431,200.00
0 ASSESSOR OF NASUGBU, BATANGAS,
In essence, the Provincial Assessor had
determined that the submarine cable
systems described in Capwire's Sworn
Statement of True Value of Real Properties
are taxable real property, a determination
that was contested by Capwire in an
exchange of letters between the company
and the public respondent. 12 The reason
cited by Capwire is that the cable system
lies outside of Philippine territory, i.e., on
international waters. 13
On February 7, 2003 and March 4, 2003,
Capwire received a Warrant of Levy and a
Notice of Auction Sale, respectively, from
the respondent Provincial Treasurer of
Batangas (Provincial Treasurer). 14
On March I 0, 2003, Capwire filed a Petition
for Prohibition and Declaration of Nullity of
Warrant of Levy, Notice of Auction Sale
and/or Auction Sale with the Regional Trial
Court (RTC) of Batangas City. 15
After the filing of the public respondents'
Comment, 16 on May 5, 2003, the RTC
issued an Order dismissing the petition for
failure of the petitioner Capwire to follow the
requisite of payment under protest as well
as failure to appeal to the Local Board of
Assessment Appeals (LBAA), as provided
for in Sections 206 and 226 of Republic Act
(R.A.) No. 7160, or the Local Government
Code. 17
Capwire filed a Motion for
Reconsideration,18 but the same was
likewise dismissed by the RTC in an
Order19 dated August 26, 2003. It then filed
an appeal to the Court of Appeals. 20
On May 30, 2007, the Court of Appeals
promulgated its Decision dismissing the
appeal filed by Capwire and affirming the
order of the trial court.1âwphi1 The
dispositive portion of the CA's decision
states:
WHEREFORE, premises considered, the
assailed Orders dated May 5, 2003 and
August 26, 2003 of the Regional Trial Court,
Branch II of Batangas City, are AFFIRMED.
SO ORDERED.21
CAPITOL WIRELESS v. PROVINCIAL
TREASURER OF BATANGAS, GR No.
180110, 2016-05-30
Facts:
SECOND DIVISION
[ G.R. No. 180110, May 30, 2016 ]
CAPITOL WIRELESS, INC., PETITIONER,
VS. THE PROVINCIAL TREASURER OF
BATANGAS, THE PROVINCIAL
ASSESSOR OF BATANGAS, THE
MUNICIPAL TREASURER AND
RESPONDENTS.D E C I S I O N
Petitioner Capitol Wireless Inc. (Capwire) is
a Philippine corporation in the business of
providing international telecommunications
services... ed agreements with other local
and foreign telecommunications
companies... international network of
submarine cable systems... o-ownership
and other rights among the parties over the
network
Petitioner Capwire claims that it is co-owner
only of the so-called "Wet Segment" of the
APCN, while the landing stations or
terminals and Segment E of APCN located
in Nasugbu, Batangas are allegedly owned
by the Philippine Long Distance Telephone
Corporation (PLDT).
as co-owner, it does not own any particular
physical part of the cable system
However, for loan restructuring purposes,
Capwire claims that "it was required to
register the value of its right," hence, it
engaged an appraiser to "assess the
market value of the international submarine
cable system and the cost to Capwire."
Capwire claims that it also reported that the
system "interconnects at the PLDT Landing
Station in Nasugbu, Batangas," which is
covered by a transfer certificate of title and
tax declarations in the name of PLDT
Provincial Assessor of Batangas (Provincial
Assessor) issued the following
Assessments of Real Property (ARP)
against Capwire
BMP-CNS
019-00968 APCN
019-00969 SEA-ME-WE3-CNS
019-00970 GP-CNS... the Provincial
Assessor had determined that the
submarine cable systems described in
Capwire's Sworn Statement of True Value
of Real Properties are taxable real property,
a determination that was contested by
Capwire
The reason cited by Capwire is that the
cable system lies outside of Philippine
territory, i.e., on international waters.
Capwire received a Warrant of Levy and a
Notice of Auction Sale, respectively, from
the respondent Provincial Treasurer of
Batangas
Capwire filed a Petition for Prohibition and
Declaration of Nullity of Warrant of Levy,
Notice of Auction Sale and/or Auction Sale
with the Regional Trial Court (RTC) of
Batangas City... the RTC issued an Order
dismissing the petition for failure of the
petitioner Capwire to follow the requisite of
payment under protest as well as failure to
appeal to the Local Board of Assessment
Appeals... appeal to the Court of Appeals...
the Court of Appeals promulgated its
Decision dismissing the appeal filed by
Capwire and affirming the order of the trial
court
The appellate court held that the trial court
correctly dismissed Capwire's petition
because of the latter's failure to comply with
the requirements set in Sections 226 and
229 of the Local Government Code, that is,
by not availing of remedies before
administrative bodies like the LBAA and the
Central Board of Assessment Appeals
(CBAA)
Capwire claims that it saw no need to
undergo administrative proceedings
because its petition raises purely legal
questions, the appellate court did not share
this view and noted that the case raises
questions of fact, such as the extent to
which parts of the submarine cable system
lie within the territorial jurisdiction of the
taxing authorities, the public respondents.
the CA noted that Capwire failed to pay the
tax assessed against it under protest,
another strict requirement under Section
252 of the Local Government Code
Issues:
Petitioner Capwire asserts that recourse to
the Local Board of Assessment Appeals, or
payment of the tax under protest, is
inapplicable to the case at bar since there is
no question of fact involved, or that the
question involved is not the reasonableness
of the amount assessed but, rather, the
authority and power of the assessor to
impose the tax and of the treasurer to
collect it.
It contends that there is only a pure
question of law since the issue is whether
its submarine cable system, which it claims
lies in international waters, is taxable
Capwire holds the position that the cable
system is not subject to tax.
Respondents assessors and treasurers of
the Province of Batangas ana Municipality
of Nasugbu, Batangas disagree with
Capwire and insist that the case presents
questions of fact such as the extent and
portion of the submarine cable system that
lies within the jurisdiction of the said local
governments, as well as the nature of the
so-called indefeasible rights as property of
Capwire
Is the case cognizable by the administrative
agencies and covered by the requirements
in Sections 226 and 229 of the Local
Government Code which makes the
dismissal of Capwire's petition by the RTC
proper? May submarine communications
cables be classified as taxable real property
by the local governments?
Ruling:
The petition is denied. No error attended
the ruling of the appellate court that the
case involves factual questions that should
have been resolved before the appropriate
administrative bodies.
whether submarine wires or cables used for
communications may be taxed like other
real estate.We hold in the affirmative.
Principles:
In disputes involving real property taxation,
the general rule is to require the taxpayer to
first avail of administrative remedies and
pay the tax under protest before allowing
any resort to a judicial action, except when
the assessment itself is alleged to be illegal
or is made without legal authority... the
general rule of a prerequisite recourse to
administrative remedies applies when
questions of fact are raised, but the
exception of direct court action is allowed
when purely questions of law are involved...
doubt dichotomy.
calibration dichotomy... the Court sustains
the CA's finding that petitioner's case is one
replete with questions of fact instead of
pure questions of law, which renders its
filing in a judicial forum improper because it
is instead cognizable by local administrative
bodies like the Board of Assessment
Appeals, which are the proper venues for
trying these factual issues.
"whether or not an indefeasible right over a
submarine cable system that lies in
international waters can be subject to real
property tax in the Philippines,"... is not the
genuine issue that the case presents -...
such factual issues as the extent and status
of Capwire's ownership of the system, the
actual length of the cable/s that lie in
Philippine territory, and the corresponding
assessment and taxes due on the same,
because the public respondents imposed
and collected the assailed real property tax
on the finding that at least a portion or some
portions of the submarine cable system that
Capwire owns or co-owns lies inside
Philippine territory.
Capwire argues and makes claims on mere
assumptions of certain facts as if they have
been already admitted or established, when
they have not, since no evidence of such
have yet been presented in the proper
agencies and even in the current petition...
remains unsettled whether Capwire is a
mere co-owner, not full owner, of the
subject submarine cable and, if the former,
as to what extent; whether all or certain
portions of the cable are indeed submerged
in water; and whether the waters wherein
the cable/s is/are laid are entirely outside of
Philippine territorial or inland waters, i.e., in
international waters.
apwire argues based on mere legal
conclusions, culminating on its claim of
illegality of respondents' acts, but the
conclusions are yet unsupported by facts
that should have been threshed out quasi-
judicially before the administrative
agencies.
Capwire's resort to judicial action, premised
on its legal conclusion that its cables (the
equipment being taxed) lie entirely on
international waters, without first
administratively substantiating such a
factual premise, is improper and was rightly
denied.
proposition that the cables lie entirely
beyond Philippine territory, and therefore,
outside of Philippine sovereignty, is a fact
that is not subject to judicial notice since,...
Jurisprudence on the Local Government
Code is clear that facts such as these must
be threshed out administratively, as the
courts in these types of cases step in at the
first instance only when pure questions of
law are involved.
Submarine or undersea communications
cables are akin to electric transmission lines
which this Court has recently declared in
Manila Electric Company v. City Assessor
and City Treasurer of Lucena City... may
qualify as "machinery" subject to real
property tax under the Local Government
Code
Both electric lines and communications
cables, in the strictest sense, are not
directly adhered to the soil but pass through
posts, relays or landing stations, but both
may be classified under the term
"machinery" as real property under Article
415(5)... absent any showing from Capwire
of any express grant of an exemption for its
lines and cables from real property taxation,
then this interpretation applies and
Capwire's submarine cable may be held
subject to real property tax.
Having determined that Capwire is liable,
and public respondents have the right to
impose a real property tax on its submarine
cable, the issue that is unresolved is how
much of such cable is taxable based on the
extent of Capwire's ownership or co-
ownership of it and the length that is laid
within respondents' taxing jurisdiction. The
matter, however, requires a factual
determination that is best performed by the
Local and Central Boards of Assessment
Appeals, a remedy which the petitioner did
not avail of.
It is not in dispute that the submarine cable
system's Landing Station in Nasugbu,
Batangas is owned by PLDT and not by
Capwire. Obviously, Capwire is not liable for
the real property tax on this Landing
Station. Nonetheless, Capwire admits that it
co-owns the submarine cable system that is
subject of the tax assessed and being
collected by public respondents.
As the Court takes judicial notice that
Nasugbu is a coastal town and the
surrounding sea falls within what the United
Nations Convention on the Law of the Sea
(UNCLOS) would define as the country's
territorial sea
It easily belies Capwire's contention that the
cable system is entirely in international
waters. And even if such portion does not
lie in the 12-nautical-mile vicinity of the
territorial sea but further inward... the
Philippines exercises sovereignty over the
body of water lying landward of (its)
baselines, including the air space over it
and the submarine areas underneath."
And as far as local government units are
concerned, the areas described above are
to be considered subsumed under the term
"municipal waters" which, under the Local
Government Code, includes "not only
streams, lakes, and tidal waters within the
municipality, not being the subject of private
ownership and not comprised within the
national parks, public forest, timber lands,
forest reserves or fishery reserves, but also
marine waters included between two lines
drawn perpendicularly to the general
coastline from points where the boundary
lines of the municipality or city touch the
sea at low tide and a third line parallel with
the general coastline and fifteen (15)
kilometers from it."
Although the term "municipal waters"
appears in the Code in the context of the
grant of quarrying and fisheries privileges
for a fee by local governments,... its
inclusion in the Code's Book II which covers
local taxation means that it may also apply
as guide in determining the territorial extent
of the local authorities' power to levy real
property taxation.
the jurisdiction or authority over such part of
the subject submarine cable system lying
within Philippine jurisdiction includes the
authority to tax the same, for taxation is one
of the three basic and necessary attributes
of sovereignty... and such authority has
been delegated by the national legislature
to the local governments with respect to
real property taxation.
a way for Capwire to claim that its cable
system is not covered by such authority is
by showing a domestic enactment or even
contract, or an international agreement or
treaty exempting the same from real
property taxation. It failed to do so,
however, despite the fact that the burden of
proving exemption from local taxation is
upon whom the subject real property is
declared
Under the Local Government Code, every
person by or for whom real property is
declared, who shall claim tax exemption for
such property from real property taxation
"shall file with the provincial, city or
municipal assessor within thirty (30) days
from the date of the declaration of real
property sufficient documentary evidence in
support of such claim."
And even under Capwire's legislative
franchise, RA 4387, which amended RA
2037, where it may be derived that there
was a grant of real property tax exemption
for properties that are part of its franchise,
or directly meet the needs of its business...
such had been expressly withdrawn by the
Local Government Code, which took effect
on January 1, 1992,... Section 193.
Withdrawal of Tax Exemption Privileges. -
Unless otherwise provided in this Code, tax
exemptions or incentives granted to, or
presently enjoyed by all persons, whether
natural or juridical, including government-
owned or controlled corporations, except
local water districts, cooperatives duly
registered under R.A. No. 6938, nonstock
and nonprofit hospitals and educational
institutions, are hereby withdrawn upon the
effectivity of this Code.
Section 234. Exemptions from Real
Property Tax
Except as provided herein, any exemption
from payment of real property tax previously
granted to, or presently enjoyed by, all
persons, whether natural or juridical,
including all government-owned or
controlled corporations arc hereby
withdrawn upon the effectivity of this Code
Capwire fails to allege or provide any other
privilege or exemption that were granted to
it by the legislature after the enactment of
the Local Government Code. Therefore, the
presumption stays that it enjoys no such
privilege or exemption. Tax exemptions are
strictly construed against the taxpayer
because taxes are considered the lifeblood
of the nation.
Parties:
Petitioner: Capitol Wireless, Inc.
Respondents:
The Provincial Treasurer of Batangas
The Provincial Assessor of Batangas
The Municipal Treasurer and Assessor of
Nasugbu, Batangas
Statement of Facts:
Capitol Wireless, Inc. is a corporation
engaged in providing telecommunications
services.
The dispute arises from the assessment of
real property taxes imposed by the
respondents, specifically the Provincial
Treasurer and Assessor of Batangas, as
well as the Municipal Treasurer and
Assessor of Nasugbu, Batangas, on Capitol
Wireless' telecommunications facilities
located in Nasugbu, Batangas.
Capitol Wireless contests the assessment,
claiming that its telecommunications
facilities are exempt from real property
taxes under the law.
Issues Presented:
Whether or not Capitol Wireless'
telecommunications facilities are exempt
from real property taxes.
Whether or not the respondents properly
assessed Capitol Wireless for real property
taxes.
Ruling/Decision:
The Supreme Court ruled in favor of Capitol
Wireless, holding that its
telecommunications facilities are exempt
from real property taxes.
The Court found that Capitol Wireless'
telecommunications facilities fall under the
category of personal property rather than
real property for tax purposes, and thus are
not subject to real property taxes.
Reasoning:
The Court examined the nature of Capitol
Wireless' telecommunications facilities and
determined that they are movable in nature
and can be transferred from one place to
another without causing damage to the
land.
The Court cited relevant jurisprudence and
statutory provisions to support its
conclusion that telecommunications
facilities similar to those of Capitol Wireless
are considered personal property for tax
purposes.
The Court emphasized the importance of
interpreting tax laws in favor of the taxpayer
and resolving doubts in favor of tax
exemption.
Disposition:
The Supreme Court reversed the decisions
of the lower courts and ordered the
respondents to refund Capitol Wireless the
real property taxes it paid on its
telecommunications facilities.
Conclusion:
Capitol Wireless, Inc. v. The Provincial
Treasurer of Batangas, et al. clarifies the
tax treatment of telecommunications
facilities for real property tax purposes. The
decision underscores the principle of tax
exemption for certain types of movable
property and provides guidance for
taxpayers and local government units in
similar disputes.
CASE 3
A.M. No. P-02-1651 June 22, 2006
(Formerly OCA I.P.I. No. 00-1021-P)
ALEJANDRO ESTRADA, Complainant,
vs.
SOLEDAD S. ESCRITOR, Respondent.
RESOLUTION
PUNO, J.:
While man is finite, he seeks and
subscribes to the Infinite. Respondent
Soledad Escritor once again stands before
the Court invoking her religious freedom
and her Jehovah God in a bid to save her
family – united without the benefit of legal
marriage - and livelihood. The State, on the
other hand, seeks to wield its power to
regulate her behavior and protect its
interest in marriage and family and the
integrity of the courts where respondent is
an employee. How the Court will tilt the
scales of justice in the case at bar will
decide not only the fate of respondent
Escritor but of other believers coming to
Court bearing grievances on their free
exercise of religion. This case comes to us
from our remand to the Office of the Court
Administrator on August 4, 2003.1
I. THE PAST PROCEEDINGS
In a sworn-letter complaint dated July 27,
2000, complainant Alejandro Estrada
requested Judge Jose F. Caoibes, Jr.,
presiding judge of Branch 253, Regional
Trial Court of Las Piñas City, for an
investigation of respondent Soledad
Escritor, court interpreter in said court, for
living with a man not her husband, and
having borne a child within this live-in
arrangement. Estrada believes that Escritor
is committing an immoral act that tarnishes
the image of the court, thus she should not
be allowed to remain employed therein as it
might appear that the court condones her
act.2 Consequently, respondent was
charged with committing "disgraceful and
immoral conduct" under Book V, Title I,
Chapter VI, Sec. 46(b)(5) of the Revised
Administrative Code. 3
Respondent Escritor testified that when she
entered the judiciary in 1999, she was
already a widow, her husband having died
in 1998.4 She admitted that she started
living with Luciano Quilapio, Jr. without the
benefit of marriage more than twenty years
ago when her husband was still alive but
living with another woman. She also
admitted that she and Quilapio have a
son.5 But as a member of the religious sect
known as the Jehovah’s Witnesses and the
Watch Tower and Bible Tract Society,
respondent asserted that their conjugal
arrangement is in conformity with their
religious beliefs and has the approval of her
congregation.6 In fact, after ten years of
living together, she executed on July 28,
1991, a "Declaration of Pledging
Faithfulness."7
For Jehovah’s Witnesses, the Declaration
allows members of the congregation who
have been abandoned by their spouses to
enter into marital relations. The Declaration
thus makes the resulting union moral and
binding within the congregation all over the
world except in countries where divorce is
allowed. As laid out by the tenets of their
faith, the Jehovah’s congregation requires
that at the time the declarations are
executed, the couple cannot secure the civil
authorities’ approval of the marital
relationship because of legal impediments.
Only couples who have been baptized and
in good standing may execute the
Declaration, which requires the approval of
the elders of the congregation. As a matter
of practice, the marital status of the
declarants and their respective spouses’
commission of adultery are investigated
before the declarations are
executed.8 Escritor and Quilapio’s
declarations were executed in the usual and
approved form prescribed by the Jehovah’s
Witnesses,9 approved by elders of the
congregation where the declarations were
executed,10 and recorded in the Watch
Tower Central Office.11
Moreover, the Jehovah’s congregation
believes that once all legal impediments for
the couple are lifted, the validity of the
declarations ceases, and the couple should
legalize their union. In Escritor’s case,
although she was widowed in 1998, thereby
lifting the legal impediment to marry on her
part, her mate was still not capacitated to
remarry. Thus, their declarations remained
valid.12 In sum, therefore, insofar as the
congregation is concerned, there is nothing
immoral about the conjugal arrangement
between Escritor and Quilapio and they
remain members in good standing in the
congregation.
By invoking the religious beliefs, practices
and moral standards of her congregation, in
asserting that her conjugal arrangement
does not constitute disgraceful and immoral
conduct for which she should be held
administratively liable,13 the Court had to
determine the contours of religious freedom
under Article III, Section 5 of the
Constitution, which provides, viz:
Sec. 5. No law shall be made respecting an
establishment of religion, or prohibiting the
free exercise thereof. The free exercise and
enjoyment of religious profession and
worship, without discrimination or
preference, shall forever be allowed. No
religious test shall be required for the
exercise of civil or political rights.
A. Ruling
In our decision dated August 4, 2003, after
a long and arduous scrutiny into the origins
and development of the religion clauses in
the United States (U.S.) and the
Philippines, we held that in resolving claims
involving religious freedom (1) benevolent
neutrality or accommodation, whether
mandatory or permissive, is the spirit, intent
and framework underlying the religion
clauses in our Constitution; and (2) in
deciding respondent’s plea of exemption
based on the Free Exercise Clause (from
the law with which she is administratively
charged), it is the compelling state interest
test, the strictest test, which must be
applied.14
Notwithstanding the above rulings, the
Court could not, at that time, rule definitively
on the ultimate issue of whether respondent
was to be held administratively liable for
there was need to give the State the
opportunity to adduce evidence that it has a
more "compelling interest" to defeat the
claim of the respondent to religious
freedom. Thus, in the decision dated August
4, 2003, we remanded the complaint to the
Office of the Court Administrator (OCA), and
ordered the Office of the Solicitor General
(OSG) to intervene in the case so it can:
(a) examine the sincerity and centrality of
respondent’s claimed religious belief and
practice;
(b) present evidence on the state’s
"compelling interest" to override
respondent’s religious belief and practice;
and
(c) show that the means the state adopts in
pursuing its interest is the least restrictive to
respondent’s religious freedom. 15
It bears stressing, therefore, that the
residual issues of the case pertained NOT
TO WHAT APPROACH THIS COURT
SHOULD TAKE IN CONSTRUING THE
RELIGION CLAUSES, NOR TO THE
PROPER TEST APPLICABLE IN
DETERMINING CLAIMS OF EXEMPTION
BASED ON FREEDOM OF RELIGION.
These issues have already been ruled upon
prior to the remand, and constitute "the law
of the case" insofar as they resolved the
issues of which framework and test are to
be applied in this case, and no motion for its
reconsideration having been filed.16 The
only task that the Court is left to do is to
determine whether the evidence adduced
by the State proves its more compelling
interest. This issue involves a pure question
of fact.
ESTRADA v. ESCRITOR, AM NO. P-02-
1651, 2006-06-22
Facts:
In a sworn-letter complaint... complainant
Alejandro Estrada requested Judge Jose F.
Caoibes, Jr... for an investigation of
respondent Soledad Escritor, court
interpreter in said court, for... living with a
man not her husband, and having borne a
child... that Escritor is committing an
immoral act... thus she should not be
allowed to remain employed
Respondent Escritor testified that when she
entered the judiciary... she was already a
widow, her husband having died in 1998.
She admitted that she started living with
Luciano Quilapio, Jr. without the benefit of
marriage more than twenty years... ago
when her husband was still alive but living
with another woman. She also admitted that
she and Quilapio have a son.
But as a member of the religious sect
known as the Jehovah's Witnesses and the
Watch Tower and Bible Tract Society,
respondent... asserted that their conjugal
arrangement is in conformity with their
religious beliefs... together, she executed on
July 28, 1991, a "Declaration of Pledging
Faithfulness."
For Jehovah's Witnesses, the Declaration
allows members of the congregation who
have been abandoned by their spouses to
enter into marital relations.
the OSG contends that the State has a
compelling interest to override respondent's
claimed religious belief and practice, in
order to protect marriage and the family as
basic social institutions. The Solicitor
General, quoting the
Constitution[148] and the Family Code,[149]
argues that marriage and the family are so
crucial to the stability and peace of the
nation that the conjugal arrangement
embraced in the Declaration of Pledging
Faithfulness should not be... recognized or
given effect, as "it is utterly destructive of
the avowed institutions of marriage and the
family for it reduces to a mockery these
legally exalted and socially significant
institutions which in their purity demand
respect and dignity.
the dissenting opinion of Mr. Justice Carpio
echoes the Solicitor General in so far as he
asserts that the State has a compelling
interest in the preservation of marriage and
the family as basic social institutions,... He
also argues that in dismissing the
administrative complaint against
respondent, "the majority opinion effectively
condones and accords a semblance of
legitimacy to her patently unlawful
cohabitation..." and
"facilitates the circumvention of the Revised
Penal Code.
According to Mr. Justice Carpio, by
choosing to turn a blind eye to respondent's
criminal conduct, the majority is in fact
recognizing a practice, custom or
agreement that subverts marriag
The Solicitor General also argued against
respondent's religious freedom on the basis
of morality, i.e., that "the conjugal
arrangement of respondent and her live-in
partner should not be condoned because
adulterous relationships are constantly
frowned upon by... society";[152] and "that
State laws on marriage, which are moral in
nature, take clear precedence over the
religious beliefs
Issues:
whether... respondent should be found
guilty of the administrative charge of
"disgraceful and immoral conduct."
Ruling:
in a case where the party claims religious
liberty in the face of a general law that
inadvertently burdens his religious exercise,
he faces an almost insurmountable wall in
convincing the Court that the wall of
separation would not be breached if the
Court grants him an exemption. These
conclusions, however, are not and were
never warranted by the 1987, 1973 and
1935 Constitutions as shown by other
provisions on religion in all three
constitutions. It is a cardinal rule in
constitutional construction that... the
constitution must be interpreted as a whole
and apparently conflicting provisions should
be reconciled and harmonized in a manner
that will give to all of them full force and
effect. From this construction, it will be
ascertained that the intent of the framers
was... to adopt a benevolent neutrality
approach in interpreting the religious
clauses in the Philippine constitutions, and
the enforcement of this intent is the goal of
construing the constitution... our own
Constitutions have made significant...
changes to accommodate and exempt
religion. Philippine jurisprudence shows that
the Court has allowed exemptions from a
law of general application, in effect,
interpreting our religion clauses to cover
both mandatory and permissive
accommodations
The case at bar does not involve speech as
in American Bible Society, Ebralinag and
Iglesia ni Cristo where the "clear and
present danger" and "grave and immediate
danger" tests were appropriate as speech
has easily discernible or immediate...
effects. The Gerona and German doctrine,
aside from having been overruled, is not
congruent with the benevolent neutrality
approach, thus not appropriate in this
jurisdiction. Similar to Victoriano, the
present case involves purely... conduct
arising from religious belief. The
"compelling state interest" test is proper
where conduct is involved for the whole
gamut of human conduct has different
effects on the state's interests: some effects
may be immediate and short-term while
others delayed and... far-reaching.
the free exercise of religion is specifically
articulated as one of the fundamental rights
in our Constitution. It is a fundamental right
that enjoys a preferred position in the The decision will be based on whether
hierarchy of rights - "the most inalienable Soledad S. Escritor's actions violated
and sacred of human rights," in the... words ethical rules or standards of the legal
of Jefferson. Hence, it is not enough to profession, such as the Code of
contend that the state's interest is Professional Responsibility.
important, because our Constitution itself
holds the right to religious freedom sacred. Disposition:
The State must articulate in specific terms
the state interest involved in preventing the The disposition will depend on the findings
exemption,... which must be compelling, for and conclusions reached by the disciplinary
only the gravest abuses, endangering body or court. If Soledad S. Escritor is
paramount interests can limit the found to have committed misconduct,
fundamental right to religious freedom. To disciplinary sanctions may be imposed.
rule otherwise would be to emasculate the
Conclusion:
Free Exercise Clause as a source of right
by itself. The case involving Alejandro Estrada and
Soledad S. Escritor highlights the
Thus, it is not the State's broad interest in
importance of upholding ethical standards
"protecting the institutions of marriage and
in the legal profession. The outcome of the
the family," or even "in the sound
case will have implications not only for the
administration of justice" that must be
parties involved but also for the broader
weighed against respondent's claim, but the
legal community in terms of maintaining the
State's narrow interest in refusing to make
integrity and reputation of the legal
an exception for the... cohabitation which
profession.
respondent's faith finds moral. In other
words, the government must do more than
assert the objectives at risk if exemption is
given; it must precisely show how and to
what extent those objectives will be
undermined if exemptions are granted.[151]
This, the Solicitor General failed to do.
Parties:
Complainant: Alejandro Estrada
Respondent: Soledad S. Escritor
Statement of Facts:
Alejandro Estrada filed a complaint against
Soledad S. Escritor alleging acts of
impropriety and unethical behavior.
Issues Presented:
Whether Soledad S. Escritor engaged in
conduct unbecoming of a member of the
legal profession.
Whether there are sufficient grounds to
impose disciplinary sanctions against
Soledad S. Escritor.
Ruling/Decision:
The ruling will depend on the decision of the
disciplinary body or court handling the
complaint. The decision could range from
dismissal of the complaint to imposition of
disciplinary sanctions such as reprimand,
suspension, or disbarment.
Reasoning:
The disciplinary body or court will examine
the evidence presented by both parties,
including testimonies, documents, and other
relevant materials.