By Analiza Q. Leyba

FOR TAX ASSESSMENT ON POLES

City brass say: “We will win”

THE Dagupan Electric Corporation has filed a civil case against the Dagupan city government protesting the latter’s demand for P4.5 million in assessed real property taxes for its 6,417 electric posts all over the city.

Cited as defendant in the civil case was City Treasurer Romelita Alcantara who signed the demand letter to Decorp.

The complaint was filed before the Regional Trial Court by Decorp after the city assessor’s office sent statement of account for real property taxes on electric poles and a copy of the tax declaration No. 23-701-1 to Decorp on February 22, demanding the latter to pay P4,497,000.33 as its unpaid RPT due to the city government.

The assessed amount represented unpaid RPT of Decorp from 1996 to this year.

Decorp, the sole distributor of electricity in Dagupan and adjacent areas, has never been assessed by the city for the electric poles.

Instead of paying, Decorp filed a civil case protested the payment, demanded the declaration of nullity of the assessment, and also claimed remuneration for damages.

The complaint filed on July 21 and city government finally received its copy last August 1.

Decorp maintained that the electric poles which were assessed for real property tax are “not real property and are not lawful objects of RPT” and, therefore, is not liable to pay the RPT.

It asked the court to declare the tax declaration as null and void and to make the city government desist from collecting.

Decorp also asked the court to compel the city government to pay jointly and severally to the Decorp the amounts of P500,000 as expenses in the litigation, P300,000 as attorney’s fees and an appearance fee of P2,500 for each appearance of its counsel in the case.

Dominador Liwag, manager of the Decorp, signed the complaint.

Prior to the complaint, the Decorp had sent a letter to the city dated April 18, 2006, declaring their protest to the demand of payment of their assessed RPT due on their electric poles, but the city allegedly failed and refused to answer the protest letter.

City Legal Officer Geraldine Baniqued argued that the protest cannot be entertained unless Decorp makes its payment first.

Baniqued said the city government assessed Decorp only for 10 years since the law states that the maximum assessment is 10 years and pointed out that the assessed amount payable did not include the interest.

She also flayed the Decorp for not observing the rules for contesting RPT assessment as provided in the local government code but welcomed the filing of the case just the same “because it will enrich our jurisprudence.”

She likened it to the case involving the Philippine Long Distance Telecommunication Company from whom the city collected at least P4 million for franchise taxes due to the city.

Meanwhile, City Administrator Rafael Baraan told a local radio station here that the city has been prompt in paying its power bills, squelching speculations that the assessment was served to cover up its delayed payment of bills.

“We’re now very good in paying. Kami na ang nagpapa-assess ngayon, kaya wala nang delay. Wala na tayong problema sa Decorp, sila na ang may problema sa atin,” said Baraan.

City Treasurer Romelita Alcantara said she was not intimidated by the case filed against her. Like Baraan, and Baniqued, Alcantara also expressed confidence that the city will win the case. – AQL

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