Dagupan wins tax case vs. TV network
THE Local Board of Assessment Appeals in Dagupan dismissed the appeal of GMA Network, Inc. against a contested tax assessment made by the city government on the broadcasting company’s Dagupan properties.
In its decision, the board said “Exemption from real property tax cannot be presumed, for exemption from taxation is highly disfavored by law, and anyone who claims exemption must be able to justify his claim by the clearest of organic law, or statute.”
In sum, it said the appeal was considered “without merit”.
The board is composed of Atty. Cecilia Munar as chairman, and Atty. Pelagio Palma and the City Engineer as members.
GMA filed the appeal after OIC-Assessor George Mejia, also the city legal officer, denied the company’s request to exclude its properties located in Dagupan from the assessment roll of taxable real properties in the city.
GMA Network claims that Section 8 of its legislative franchise as provided for in Republic Act No. 7252 exempts from real property taxes those real properties that are actually, directly and exclusively used by GMA in the pursuit of its franchise, citing the case of the City Government of Quezon City vs. Bayan Telecommunications Inc.
GMA, which took over from the Republic Broadcasting System and its properties, asserts that it has every right to claim exemption under R.A. 7252.
However, Mejia said the exemptions granted by R.A. 7252 to Republic Broadcasting System cannot be enjoyed by GMA without the prior approval of Congress.
Mejia cited Section 11 of R.A. 7252 which specifically provides: ” the grantee shall not lease, transfer, grant the usufruct of, sell or assign this franchise nor the rights and privileges to any such private person, firm, company, corporation or entity without the approval of the Congress of the Philippines.”
At the same time, Mejia averred that the appeal made by GMA was filed beyond the reglamentary period of 60 days and the assessment has become final.—LM
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