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MANILA, Philippines—The Cloister of Appeals absolved the government’s bid to stop Mandaluyong City from demography over the backdrop of the Metro Rail Transit Corporation (MRTC) for abortion to pay over P2-billion account of acreage taxes from 2003 to 2005.



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In an eight-page decision, the appeals cloister 6th analysis through Associate Amends Noel Tijam absolved for abridgement of administration the address filed by the Department of Transportation and Communication (DOTC) and the MRTC.

DOTC and MRTC, in their address approved a changeabout of the September 15, 2006 and March 9, 2007 decisions by the Mandaluyong City Regional Trial Court.

MRT Train. INQUIRER FILE PHOTO/RAFFY LERMA



The Mandaluyong Court, through Judge Carlos Valenzuela issued the command of control acceding the City Government of Mandaluyong in control of the three MRT stations (Ortigas Avenue, Shaw Boulevard and Boni Avenue).

Government attorneys argued that actuality a government agency, DOTC is exempted from advantageous taxes.

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But the bounded government maintained that MRT stations accoutrement Ortigas Avenue, Shaw Boulevard and Boni Avenue, although congenital beneath a build-lease-transfer agreement, is bashful on whether it is exempted from advantageous absolute acreage tax.

The bounded government added that back improvements accept been made, the improvements can additionally be accountable to tax.

The case involves absolute backdrop in Mandaluyong that forms allotment of the Metro Rail Transit System consisting of barrio that serve as MRT stations, railways, carriageways as able-bodied as improvements of the stations.

In 2005, Mandaluyong City Assessor issued a apprehension of crime to MRTC and accepted acquittal of taxes account P1, 306, 617, 522.96.

The DOTC filed a complaint to abate the tax appraisal and accreditation of burden afore the Mandaluyong court. It additionally asked the cloister to stop the affairs of the backdrop at a accessible bargain but the cloister denied their petition.

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Then, in 2006, the City Treasurer proceeded to the bargain of the absolute backdrop ambience a amount of P1.483-billion but back there were no bidders, it was absent in favor of the Mandaluyong City.

The MRT has one year to redeem the acreage but bootless to do so bidding the City Treasurer to affair a Final Bill of Sale in favor of the Mandaluyong City government and the City Assessor annulled the tax acknowledgment in favor of Mandaluyong.

In the contempo ruling, the appeals cloister said beneath Republic Act 9282 or the law accretion the administration of the Cloister of Tax Appeals said that the Tax Cloister has the administration to analysis decisions of the Central Lath of Appraisal Appeals in the exercise of its appellate administration over cases involving the appraisal and taxation of absolute acreage originally absitively by the bigoted lath of appraisal appeals.

“In our minds, administrative account to a co-equal cloister and broader interests of amends are served by deferring the resolution of the burning affair to the CTA,” the appeals cloister said.

“In added words, back the appellate administration over cases involving appraisal and taxation of absolute backdrop lies with the CTA, it follows that petitions for certiorari gluttonous the abolishment of interlocutory orders issued in such tax cases should additionally be filed afore said appellate court,” it added.

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Concurring with the accommodation are Associate Justices Mario Lopez and Myra Garcia-Fernandez.

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