MANILA – Following a Supreme Court (SC) en banc session on Tuesday, Deputy Court Administrator…
The Supreme Court upholds the CTA’s decision in the Leyte hotel tax issue.
MANILA, Philippines — The Supreme Court (SC) has upheld a decision by the Court of Tax Appeals (CTA) holding a local corporation liable for real estate taxes in connection with a government-owned hotel it rented.
The petition filed by Unimasters Conglomeration, Inc. (UCI) in connection with taxes deriving from its lease of Leyte Park Hotel, Inc. (LPHI) in Tacloban City was denied by the SC 3rd Division.
The Assets Privatization Trust (APT), currently known as the Privatization and Management Office (PMO), the province of Leyte, and the Philippine Tourism Authority are all co-owners (PTA).
In 1994, the then-APT, on behalf of the LPHI and UCI owners, signed a 12-year leasing agreement for the LPHI.
Real property taxes are the responsibility of the lessors – the APT-PMO and Leyte – under the lease.
The real property tax payments made by UCI will be deducted from any amount owed to the lessor by UCI.
The University of California at Irvine paid its monthly rent and real estate taxes, with the latter being credited to its rental payment.
UCI, on the other hand, stopped paying its debts in 2000.
The agreement ended without UCI fulfilling its duties, and UCI has kept control of the property without paying the rent or taxes owed.
The City of Tacloban issued demand letters to Chan in order to collect PHP66 million in unpaid LPHI real property taxes from 1989 to 2012.
UCI was found liable for PHP22.826 million in the case by the Court of Tax Appeals in 2011.
In an Aug. 22, 2014 judgment, the CTA en banc affirmed UCI’s duty to pay realty taxes.
The case was taken to the Supreme Court by the parties.
The high court dismissed UCI’s case, stating that the tax court made the correct decision in holding the company accountable for taxes. (