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    Talento v. Escalada, 556 SCRA 491 (2008)

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    I took her to my penthouse and i freaked it
    The document discusses a case where a company contested a revised real property tax assessment. The company filed an appeal and posted a surety bond. The court ruled that the collection of taxes can be suspended during an appeal if a clear right to refuse or hold payment is shown, which it was in this case since issues in the assessment must be resolved first.

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    Talento v. Escalada, 556 SCRA 491 (2008)

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    I took her to my penthouse and i freaked it
    33 views2 pages
    The document discusses a case where a company contested a revised real property tax assessment. The company filed an appeal and posted a surety bond. The court ruled that the collection of taxes can be suspended during an appeal if a clear right to refuse or hold payment is shown, which it was in this case since issues in the assessment must be resolved first.

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    27. Talento v. Escalada, 556 SCRA 491 (2008)

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    The document discusses a case where a company contested a revised real property tax assessment. The company filed an appeal and posted a surety bond. The court ruled that the collection of taxes can be suspended during an appeal if a clear right to refuse or hold payment is shown, which it was in this case since issues in the assessment must be resolved first.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    33 views2 pages

    Talento v. Escalada, 556 SCRA 491 (2008)

    Uploaded by

    I took her to my penthouse and i freaked it
    The document discusses a case where a company contested a revised real property tax assessment. The company filed an appeal and posted a surety bond. The court ruled that the collection of taxes can be suspended during an appeal if a clear right to refuse or hold payment is shown, which it was in this case since issues in the assessment must be resolved first.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    USA College of Law

    AVELINO -3C

    Case Name Talento v. Escalada,


    Topic
    Case No. |
    556 SCRA 491 (2008) March 5, 1993
    Date
    Ponente Davide, Jr., J
    Doctrine
    Link

    RELEVANT FACTS:

    Petron received from the Provincial Assessors Office a notice of revised assessment over its
    machineries and pieces of equipment. Based on the revised assessment, the Provincial
    Treasurer of Bataan issued a notice informing Petron that its total liability is P1,731,025,403.06,
    representing deficiency real property tax.

    Petron then filed a petition with the Local Board of Assessment Appeals (LBAA) contesting the
    revised assessment on the following grounds

    1. Subject assessment pertained to properties that have been previously declared


    2. Assessment covered periods of more than 10 years which is not allowed under
    the LGC
    3. Fair market value or replacement cost used by the Provincial Treasurer included
    items which should be properly excluded
    4. Prompt payment of discounts were not considered in determining the FMV
    5. Subject assessment should take effect a year after or on January 1, 2008

    Petron also sought the approval of a surety bond in the amount of P1,286,057,899.54.

    Petron then received a final notice from the Provincial Treasurer of delinquent real
    property tax with a warning that the subject properties would be sold should Petron fail to pay.
    Petron replied, stating that in view of the pendency of its appeal with the LBAA, any action by
    the Treasurer’s Office on the subject properties would be premature.

    With the issuance of a Warrant of Levy against its machineries and pieces of equipment,
    Petron filed an urgent motion to lift the final notice of delinquent real property tax and warrant
    of levy with the LBAA.

    Subsequently, Petron received a notice of sale of its properties and withdrew its motion
    to lift the final notice of delinquent tax. Petron then filed with the RTC for prohibition with
    prayer for the issuance of TRO and preliminary injunction.
    USA College of Law
    AVELINO -3C
    The RTC issued a TRO for 20 days, enjoining the Provincial Treasurer from proceeding
    with the public auction. It then issued an order granting Petron’s petition for issuance of writ of
    preliminary injunction, subject to Petron posting a bond in addition to its previously posted
    surety.

    ISSUE: Whether the collection of taxes may be suspended by reason of the filing of an
    appeal and posting of a surety bond
    RULING:
    YES.

    The general rule is based on the doctrine that taxes are the lifeblood of the government, and
    thus appeal shall not suspend the collection of realty taxes. However, an exception is when
    the taxpayer has shown a clear and unmistakable right to refuse or to hold in abeyance the
    payment of taxes.

    In this case, there is urgency and paramount necessity for the issuance of a writ of injunction,
    since what is being enjoined is the sale by public auction of the properties of Petron
    amounting to at least P1.7 billion and which properties are vital to its business operations.

    The grounds given by Petron in contesting the assessment have a direct bearing on the
    assessment made by the Provincial Treasurer. It is necessary that these issues must first be
    passed upon before the properties of Petron are sold in public auction.
    Furthermore, Petron has posted a surety bond equivalent to the amount of assessment due.

    The posting of this bond is in accordance with Section 7, Rule V of the LBAA Rules of
    Procedure, as well as with Sec. 11 of RA 9282.

    Therefore, the petition of Talento, as Provincial Treasurer, should be dismissed.

    RULING
    WHEREFORE, in view of all the foregoing, the instant petition is DISMISSED.

    SEPARATE OPINIONS
    (optional)

    NOTES

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