SECOND DIVISION
G.R. No. 184203, November 26, 2014
CITY OF LAPU-LAPU, Petitioner, v. PHILIPPINE ECONOMIC ZONE AUTHORITY, Respondent.
G.R. NO. 187583
PROVINCE OF BATAAN, REPRESENTED BY GOVERNOR ENRIQUE T. GARCIA, JR., AND EMERLINDA S. TALENTO, IN HER CAPACITY AS PROVINCIAL TREASURER OF BATAAN, Petitioners, v. PHILIPPINE ECONOMIC ZONE AUTHORITY, Respondent.
D E C I S I O N
LEONEN, J.:
Section 21. Non-profit Character of the Authority; Exemption from Taxes. The Authority shall be non-profit and shall devote and use all its returns from its capital investment, as well as excess revenues from its operations, for the development, improvement and maintenance and other related expenditures of the Authority to pay its indebtedness and obligations and in furtherance and effective implementation of the policy enunciated in Section 1 of this Decree. In consonance therewith, the Authority is hereby declared exempt:ChanRoblesVirtualawlibrary. . . .
(b) From all income taxes, franchise taxes, realty taxes and all other kinds of taxes and licenses to be paid to the National Government, its provinces, cities, municipalities and other government agencies and instrumentalities[.]
SEC. 24. Exemption from National and Local Taxes. – Except for real property taxes on land owned by developers, no taxes, local and national, shall be imposed on business establishments operating within the ECOZONE. In lieu thereof, five percent (5%) of the gross income earned by all business enterprises within the ECOZONE shall be paid and remitted as follows:
a. Three percent (3%) to the National Government;
b. Two percent (2%) which shall be directly remitted by the business establishments to the treasurer’s office of the municipality or city where the enterprise is located.
SEC. 51. Ipso-Facto Clause. – All privileges, benefits, advantages or exemptions granted to special economic zones under Republic Act No. 7227, shall ipso-facto be accorded to special economic zones already created or to be created under this Act. The free port status shall not be vested upon new special economic zones.
SEC. 2. Dismissal of improper appeal to the Court of Appeals. – An appeal under Rule 41 taken from the Regional Trial Court to the Court of Appeals raising only questions of law shall be dismissed, issues purely of law not being reviewable by said court. Similarly, an appeal by notice of appeal instead of by petition for review from the appellate judgment of a Regional Trial Court shall be dismissed.
An appeal erroneously taken to the Court of Appeals shall not be transferred to the appropriate court but shall be dismissed outright.
Sec. 3. Where appealed case erroneously, brought. — Where the appealed case has been erroneously brought to the Court of Appeals, it shall not dismiss the appeal, but shall certify the case to the proper court, with a specific and clear statement of the grounds therefor.
While it is true that rules of procedure are intended to promote rather than frustrate the ends of justice, and while the swift unclogging of the dockets of the courts is a laudable objective, it nevertheless must not be met at the expense of substantial justice.
The Court has allowed some meritorious cases to proceed despite inherent procedural defects and lapses. This is in keeping with the principle that rules of procedure are mere tools designed to facilitate the attainment of justice, and that strict and rigid application of rules which should result in technicalities that tend to frustrate rather than promote substantial justice must always be avoided. It is a far better and more prudent cause of action for the court to excuse a technical lapse and afford the parties a review of the case to attain the ends of justice, rather than dispose of the case on technicality and cause grave injustice to the parties, giving a false impression of speedy disposal of cases while actually resulting in more delay, if not a miscarriage of justice.120
SECTION 1. Who may file petition. – Any person interested under a deed, will, contract or other written instrument, or whose rights are affected by a statute, executive order or regulation, ordinance, or any other governmental regulation may, before breach or violation, thereof, bring an action in the appropriate Regional Trial Court to determine any question of construction or validity arising, and for a declaration of his rights or duties, thereunder.
An action for reformation of an instrument, to quiet title to real property or remove clouds therefrom, or to consolidate ownership under Article 1607 of the Civil Code, may be brought under this Rule.
SEC. 19. Jurisdiction in Civil Cases. – Regional Trial Courts shall exercise exclusive original jurisdiction:
(1) In all civil actions in which the subject of litigation is incapable of pecuniary estimation[.]
Consistent with the law, the Rules state that a petition for declaratory relief is filed “in the appropriate Regional Trial Court.”122
Petitioner commenced this action as, and clearly intended it to be one for Declaratory Relief under the provisions of Rule 66 of the Rules of Court. On the question of when a special civil action of this nature would prosper, we have already held that the complaint for declaratory relief will not prosper if filed after a contract, statute or right has been breached or violated. In the present case such is precisely the situation arising from the facts alleged in the petition for declaratory relief. As vigorously claimed by petitioner himself, respondent had already invaded or violated his right and caused him injury — all these giving him a complete cause of action enforceable in an appropriate ordinary civil action or proceeding. The dismissal of the action was, therefore, proper in the light of our ruling in De Borja vs. Villadolid, 47 O.G. (5) p. 2315, and Samson vs. Andal, G.R. No. L-3439, July 31, 1951, where we held that an action for declaratory relief should be filed before there has been a breach of a contract, statutes or right, and that it is sufficient to bar such action, that there had been a breach — which would constitute actionable violation. The rule is that an action for Declaratory Relief is proper only if adequate relief is not available through the means of other existing forms of action or proceeding (1 C.J.S. 1027-1028). 132
Indeed, SJS merely speculated or anticipated without factual moorings that, as religious leaders, the petitioner and his co-respondents below had endorsed or threatened to endorse a candidate or candidates for elective offices; and that such actual or threatened endorsement "will enable [them] to elect men to public office who [would] in turn be forever beholden to their leaders, enabling them to control the government"[;] and "pos[ing] a clear and present danger of serious erosion of the people’s faith in the electoral process[;] and reinforc[ing] their belief that religious leaders determine the ultimate result of elections," which would then be violative of the separation clause.
Such premise is highly speculative and merely theoretical, to say the least. Clearly, it does not suffice to constitute a justiciable controversy. The Petition does not even allege any indication or manifest intent on the part of any of the respondents below to champion an electoral candidate, or to urge their so-called flock to vote for, or not to vote for, a particular candidate. It is a time-honored rule that sheer speculation does not give rise to an actionable right.
Obviously, there is no factual allegation that SJS’ rights are being subjected to any threatened, imminent and inevitable violation that should be prevented by the declaratory relief sought. The judicial power and duty of the courts to settle actual controversies involving rights that are legally demandable and enforceable cannot be exercised when there is no actual or threatened violation of a legal right.
All that the 5-page SJS Petition prayed for was "that the question raised in paragraph 9 hereof be resolved." In other words, it merely sought an opinion of the trial court on whether the speculated acts of religious leaders endorsing elective candidates for political offices violated the constitutional principle on the separation of church and state. SJS did not ask for a declaration of its rights and duties; neither did it pray for the stoppage of any threatened violation of its declared rights. Courts, however, are proscribed from rendering an advisory opinion.141
[F]irst, the subject matter of the controversy must be a deed, will, contract or other written instrument, statute, executive order or regulation, or ordinance; second, the terms of said documents and the validity thereof are doubtful and require judicial construction; third, there must have been no breach of the documents in question; fourth, there must be an actual justiciable controversy or the "ripening seeds" of one between persons whose interests are adverse; fifth, the issue must be ripe for judicial determination; and sixth, adequate relief is not available through other means or other forms of action or proceeding.142 (Emphases omitted)
. . . an action for declaratory relief presupposes that there has been no actual breach of the instruments involved or of rights arising thereunder. Since the purpose of an action for declaratory relief is to secure an authoritative statement of the rights and obligations of the parties under a statute, deed, or contract for their guidance in the enforcement thereof, or compliance therewith, and not to settle issues arising from an alleged breach thereof, it may be entertained only before the breach or violation of the statute, deed, or contract to which it refers. A petition for declaratory relief gives a practical remedy for ending controversies that have not reached the state where another relief is immediately available; and supplies the need for a form of action that will set controversies at rest before they lead to a repudiation of obligations, an invasion of rights, and a commission of wrongs.
Where the law or contract has already been contravened prior to the filing of an action for declaratory relief, the courts can no longer assume jurisdiction over the action. In other words, a court has no more jurisdiction over an action for declaratory relief if its subject has already been infringed or transgressed before the institution of the action.158 (Emphasis supplied)
SECTION 252. Payment Under Protest. -(a) No protest shall be entertained unless the taxpayer first pays the tax. There shall be annotated on the tax receipts the words "paid under protest". The protest in writing must be filed within thirty (30) days from payment of the tax to the provincial, city treasurer or municipal treasurer, in the case of a municipality within Metropolitan Manila Area, who shall decide the protest within sixty (60) days from receipt.
(b) The tax or a portion thereof paid under protest, shall be held in trust by the treasurer concerned.
(c) In the event that the protest is finally decided in favor of the taxpayer, the amount or portion of the tax protested shall be refunded to the protestant, or applied as tax credit against his existing or future tax liability.
(d) In the event that the protest is denied or upon the lapse of the sixty day period prescribed in subparagraph (a), the taxpayer may avail of the remedies as provided for in Chapter 3, Title II, Book II of this Code.
SECTION 226. Local Board of Assessment Appeals. - Any owner or person having legal interest in the property who is not satisfied with the action of the provincial, city or municipal assessor in the assessment of his property may, within sixty (60) days from the date of receipt of the written notice of assessment, appeal to the Board of Assessment Appeals of the provincial or city by filing a petition under oath in the form prescribed for the purpose, together with copies of the tax declarations and such affidavits or documents submitted in support of the appeal.
SECTION 229. Action by the Local Board of Assessment Appeals. - (a) The Board shall decide the appeal within one hundred twenty (120) days from the date of receipt of such appeal. The Board, after hearing, shall render its decision based on substantial evidence or such relevant evidence on record as a reasonable mind might accept as adequate to support the conclusion.
(b) In the exercise of its appellate jurisdiction, the Board shall have the power to summon witnesses, administer oaths, conduct ocular inspection, take depositions, and issue subpoena and subpoena duces tecum. The proceedings of the Board shall be conducted solely for the purpose of ascertaining the facts without necessarily adhering to technical rules applicable in judicial proceedings.
(c) The secretary of the Board shall furnish the owner of the property or the person having legal interest therein and the provincial or city assessor with a copy of the decision of the Board. In case the provincial or city assessor concurs in the revision or the assessment, it shall be his duty to notify the owner of the property or the person having legal interest therein of such fact using the form prescribed for the purpose. The owner of the property or the person having legal interest therein or the assessor who is not satisfied with the decision of the Board, may, within thirty (30) days after receipt of the decision of said Board, appeal to the Central Board of Assessment Appeals, as herein provided. The decision of the Central Board shall be final and executory. (Emphasis supplied)
In the common law, from which the remedy of certiorari evolved, the writ of certiorari was issued out of Chancery, or the King’s Bench, commanding agents or officers of the inferior courts to return the record of a cause pending before them, so as to give the party more sure and speedy justice, for the writ would enable the superior court to determine from an inspection of the record whether the inferior court’s judgment was rendered without authority. The errors were of such a nature that, if allowed to stand, they would result in a substantial injury to the petitioner to whom no other remedy was available. If the inferior court acted without authority, the record was then revised and corrected in matters of law. The writ of certiorari was limited to cases in which the inferior court was said to be exceeding its jurisdiction or was not proceeding according to essential requirements of law and would lie only to review judicial or quasi-judicial acts.190
Sec. 7. Jurisdiction. – The [Court of Tax Appeals] shall exercise:
a. Exclusive appellate jurisdiction to review by appeal, as herein provided:
. . . .
3. Decisions, orders or resolutions of the Regional Trial Courts in local tax cases originally decided or resolved by them in the exercise of their original or appellate jurisdiction[.]
Sec. 7. Jurisdiction. – The [Court of Tax Appeals] shall exercise:
a. Exclusive appellate jurisdiction to review by appeal, as herein provided:
. . . .
5. Decisions of the Central Board of Assessment Appeals in the exercise of its appellate jurisdiction over cases involving the assessment and taxation of real property originally decided by the provincial or city board of assessment appeals[.]
Indeed, in order for any appellate court to effectively exercise its appellate jurisdiction, it must have the authority to issue, among others, a writ of certiorari. In transferring exclusive jurisdiction over appealed tax cases to the CTA, it can reasonably be assumed that the law intended to transfer also such power as is deemed necessary, if not indispensable, in aid of such appellate jurisdiction. There is no perceivable reason why the transfer should only be considered as partial, not total.
. . . .
If this Court were to sustain petitioners' contention that jurisdiction over their certiorari petition lies with the CA, this Court would be confirming the exercise by two judicial bodies, the CA and the CTA, of jurisdiction over basically the same subject matter – precisely the split-jurisdiction situation which is anathema to the orderly administration of justice. The Court cannot accept that such was the legislative motive, especially considering that the law expressly confers on the CTA, the tribunal with the specialized competence over tax and tariff matters, the role of judicial review over local tax cases without mention of any other court that may exercise such power. Thus, the Court agrees with the ruling of the CA that since appellate jurisdiction over private respondents' complaint for tax refund is vested in the CTA, it follows that a petition for certiorari seeking nullification of an interlocutory order issued in the said case should, likewise, be filed with the same court. To rule otherwise would lead to an absurd situation where one court decides an appeal in the main case while another court rules on an incident in the very same case.
Stated differently, it would be somewhat incongruent with the pronounced judicial abhorrence to split jurisdiction to conclude that the intention of the law is to divide the authority over a local tax case filed with the RTC by giving to the CA or this Court jurisdiction to issue a writ of certiorari against interlocutory orders of the RTC but giving to the CTA the jurisdiction over the appeal from the decision of the trial court in the same case. It is more in consonance with logic and legal soundness to conclude that the grant of appellate jurisdiction to the CTA over tax cases filed in and decided by the RTC carries with it the power to issue a writ of certiorari when necessary in aid of such appellate jurisdiction. The supervisory power or jurisdiction of the CTA to issue a writ of certiorari in aid of its appellate jurisdiction should co-exist with, and be a complement to, its appellate jurisdiction to review, by appeal, the final orders and decisions of the RTC, in order to have complete supervision over the acts of the latter.217 (Citations omitted)
SEC. 234. Exemptions from Real Property Tax. – The following are exempted from payment of real property tax:
(a) Real property owned by the Republic of the Philippines or any of its political subdivisions except when the beneficial use thereof has been granted, for consideration or otherwise, to a taxable person;
(b) Charitable institutions, churches, parsonages or convents appurtenant thereto, mosques, nonprofit or religious cemeteries and all lands, buildings, and improvements actually, directly, and exclusively used for religious, charitable or educational purposes;
(c) All machineries and equipment that are actually, directly and exclusively used by local water districts and government-owned or –controlled corporations engaged in the supply and distribution of water and/or generation and transmission of electric power;
(d) All real property owned by duly registered cooperatives as provided under R.A. No. 6938; and
(e) Machinery and equipment used for pollution control and environmental protection.
Except as provided herein, any exemption from payment of real property taxes previously granted to, or presently enjoyed by, all persons, whether natural or juridical, including government-owned or -controlled corporations are hereby withdrawn upon the effectivity of this Code. (Emphasis supplied)
SEC. 133. Common Limitations on the Taxing Powers of Local Government Units. – Unless otherwise provided herein, the exercise of taxing powers of provinces, cities, municipalities, and barangays shall not extend to the levy of the following:
. . . .
(o) Taxes, fees or charges of any kind on the National Government, its agencies and instrumentalities and local government units.
SEC. 234. Exemptions from Real Property Tax. – The following are exempted from payment of real property tax:
(a) Real property owned by the Republic of the Philippines or any of its political subdivisions except when the beneficial use thereof has been granted, for consideration or otherwise, to a taxable person;
(b) Charitable institutions, churches, parsonages or convents appurtenant thereto, mosques, nonprofit or religious cemeteries and all lands, buildings, and improvements actually, directly, and exclusively used for religious, charitable or educational purposes;
(c) All machineries and equipment that are actually, directly and exclusively used by local water districts and government-owned or –controlled corporations engaged in the supply and distribution of water and/or generation and transmission of electric power;
(d) All real property owned by duly registered cooperatives as provided under R.A. No. 6938; and
(e) Machinery and equipment used for pollution control and environmental protection.
Except as provided herein, any exemption from payment of real property tax previously granted to, or presently enjoyed by, all persons, whether natural or juridical, including all government-owned or -controlled corporations are hereby withdrawn upon the effectivity of this Code. (Emphasis supplied)
SEC. 193. Withdrawal of Tax Exemption Privileges. – Unless otherwise provided in this code, tax exemptions or incentives granted to or presently enjoyed by all persons, whether natural or juridical, including government-owned or controlled corporations, except local water districts, cooperatives duly registered under R.A. 6938, non stock and non profit hospitals and educational institutions, are hereby withdrawn upon effectivity of this Code.
SEC. 192. Authority to Grant Tax Exemption Privileges. – Local government units may, through ordinances duly approved, grant tax exemptions, incentives or reliefs under such terms and conditions as they may deem necessary.
SEC. 38. Definition of Administrative Relationship. – Unless otherwise expressly stated in the Code or in other laws defining the special relationships of particular agencies, administrative relationships shall be categorized and defined as follows:
. . . .
(3) Attachment.–(a) This refers to the lateral relationship between the department or its equivalent and the attached agency or corporation for purposes of policy and program coordination. The coordination may be accomplished by having the department represented in the governing board of the attached agency or corporation, either as chairman or as a member, with or without voting rights, if this is permitted by the charter; having the attached corporation or agency comply with a system of periodic reporting which shall reflect the progress of the programs and projects; and having the department or its equivalent provide general policies through its representative in the board, which shall serve as the framework for the internal policies of the attached corporation or agency[.]
An attached agency has a larger measure of independence from the Department to which it is attached than one which is under departmental supervision and control or administrative supervision. This is borne out by the “lateral relationship” between the Department and the attached agency. The attachment is merely for “policy and program coordination.” With respect to administrative matters, the independence of an attached agency from Departmental control and supervision is further reinforced by the fact that even an agency under a Department’s administrative supervision is free from Departmental interference with respect to appointments and other personnel actions “in accordance with the decentralization of personnel functions” under the Administrative Code of 1987. Moreover, the Administrative Code explicitly provides that Chapter 8 of Book IV on supervision and control shall not apply to chartered institutions attached to a Department.253
SECTION 2. Declaration of Policy. — It is the declared policy of the government to translate into practical realities the following State policies and mandates in the 1987 Constitution, namely:
(a) “The State recognizes the indispensable role of the private sector, encourages private enterprise, and provides incentives to needed investments.” (Sec. 20, Art. II)
(b) “The State shall promote the preferential use of Filipino labor, domestic materials and locally produced goods, and adopt measures that help make them competitive.” (Sec. 12, Art. XII)
In pursuance of these policies, the government shall actively encourage, promote, induce and accelerate a sound and balanced industrial, economic and social development of the country in order to provide jobs to the people especially those in the rural areas, increase their productivity and their individual and family income, and thereby improve the level and quality of their living condition through the establishment, among others, of special economic zones in suitable and strategic locations in the country and through measures that shall effectively attract legitimate and productive foreign investments.261
SEC. 2. General Terms Defined. – Unless the specific words of the text, or the context as a whole, or a particular statute, shall require a different meaning:
. . . .
(13) Government-owned or controlled corporation refers to any agency organized as a stock or non-stock corporation, vested with functions relating to public needs whether governmental or proprietary in nature, and owned by the Government directly or through its instrumentalities either wholly, or, where applicable as in the case of stock corporations, to the extent of at least fifty-one (51) per cent of its capital stock: Provided, That government-owned or controlled corporations may be further categorized by the Department of the Budget, the Civil Service Commission, and the Commission on Audit for purposes of the exercise and discharge of their respective powers, functions and responsibilities with respect to such corporations.
Section 16. The Congress shall not, except by general law, provide for the formation, organization, or regulation of private corporations. Government-owned or controlled corporations may be created or established by special charters in the interest of the common good and subject to the test of economic viability.
In contrast, government instrumentalities vested with corporate powers and performing governmental or public functions need not meet the test of economic viability. These instrumentalities perform essential public services for the common good, services that every modern State must provide its citizens. These instrumentalities need not be economically viable since the government may even subsidize their entire operations. These instrumentalities are not the "government-owned or controlled corporations" referred to in Section 16, Article XII of the 1987 Constitution.
Thus, the Constitution imposes no limitation when the legislature creates government instrumentalities vested with corporate powers but performing essential governmental or public functions. Congress has plenary authority to create government instrumentalities vested with corporate powers provided these instrumentalities perform essential government functions or public services. However, when the legislature creates through special charters corporations that perform economic or commercial activities, such entities — known as "government-owned or controlled corporations" — must meet the test of economic viability because they compete in the market place.
. . . .
Commissioner Blas F. Ople, proponent of the test of economic viability, explained to the Constitutional Commission the purpose of this test, as follows:chanroblesvirtuallawlibraryMR. OPLE: Madam President, the reason for this concern is really that when the government creates a corporation, there is a sense in which this corporation becomes exempt from the test of economic performance. We know what happened in the past. If a government corporation loses, then it makes its claim upon the taxpayers' money through new equity infusions from the government and what is always invoked is the common good. That is the reason why this year, out of a budget of P115 billion for the entire government, about P28 billion of this will go into equity infusions to support a few government financial institutions. And this is all taxpayers' money which could have been relocated to agrarian reform, to social services like health and education, to augment the salaries of grossly underpaid public employees. And yet this is all going down the drain.
Therefore, when we insert the phrase "ECONOMIC VIABILITY" together with the "common good," this becomes a restraint on future enthusiasts for state capitalism to excuse themselves from the responsibility of meeting the market test so that they become viable. And so, Madam President, I reiterate, for the committee's consideration and I am glad that I am joined in this proposal by Commissioner Foz, the insertion of the standard of "ECONOMIC VIABILITY OR THE ECONOMIC TEST," together with the common good.
. . . .
Clearly, the test of economic viability does not apply to government entities vested with corporate powers and performing essential public services. The State is obligated to render essential public services regardless of the economic viability of providing such service. The non-economic viability of rendering such essential public service does not excuse the State from withholding such essential services from the public.269 (Emphases and citations omitted)
Section 21. Non-profit Character of the Authority; Exemption from Taxes. The Authority shall be non-profit and shall devote and use all its returns from its capital investment, as well as excess revenues from its operations, for the development, improvement and maintenance and other related expenditures of the Authority to pay its indebtedness and obligations and in furtherance and effective implementation of the policy enunciated in Section 1 of this Decree. In consonance therewith, the Authority is hereby declared exempt:ChanRoblesVirtualawlibrary. . . .
(b) From all income taxes, franchise taxes, realty taxes and all other kinds of taxes and licenses to be paid to the National Government, its provinces, cities, municipalities and other government agencies and instrumentalities[.]
SECTION 1. Assumption of EPZA’s Powers and Functions by PEZA. All the powers, functions and responsibilities of EPZA as provided under its Charter, Presidential Decree No. 66, as amended, insofar as they are not inconsistent with the powers, functions and responsibilities of the PEZA, as mandated under Republic Act No. 7916, shall hereafter be assumed and exercised by the PEZA. Henceforth, the EPZA shall be referred to as the PEZA.
SEC. 5. Establishment of ECOZONES. – To ensure the viability and geographical dispersal of ECOZONES through a system of prioritization, the following areas are initially identified as ECOZONES, subject to the criteria specified in Section 6:
. . . .
The metes and bounds of each ECOZONE are to be delineated and more particularly described in a proclamation to be issued by the President of the Philippines, upon the recommendation of the Philippine Economic Zone Authority (PEZA), which shall be established under this Act, in coordination with the municipal and / or city council, National Land Use Coordinating Committee and / or the Regional Land Use Committee.
SEC. 6. Criteria for the Establishment of Other ECOZONES. – In addition to the ECOZONES identified in Section 5 of this Act, other areas may be established as ECOZONES in a proclamation to be issued by the President of the Philippines subject to the evaluation and recommendation of the PEZA, based on a detailed feasibility and engineering study which must conform to the following criteria:
(a) The proposed area must be identified as a regional growth center in the Medium-Term Philippine Development Plan or by the Regional Development Council;
(b) The existence of required infrastructure in the proposed ECOZONE, such as roads, railways, telephones, ports, airports, etc., and the suitability and capacity of the proposed site to absorb such improvements;
(c) The availability of water source and electric power supply for use of the ECOZONE;
(d) The extent of vacant lands available for industrial and commercial development and future expansion of the ECOZONE as well as of lands adjacent to the ECOZONE available for development of residential areas for the ECOZONE workers;
(e) The availability of skilled, semi-skilled and non-skilled trainable labor force in and around the ECOZONE;
(f) The area must have a significant incremental advantage over the existing economic zones and its potential profitability can be established;
(g) The area must be strategically located; and
(h) The area must be situated where controls can easily be established to curtail smuggling activities.
Other areas which do not meet the foregoing criteria may be established as ECOZONES: Provided, That the said area shall be developed only through local government and/or private sector initiative under any of the schemes allowed in Republic Act No. 6957 (the build-operate-transfer law), and without any financial exposure on the part of the national government: Provided, further, That the area can be easily secured to curtail smuggling activities: Provided, finally, That after five (5) years the area must have attained a substantial degree of development, the indicators of which shall be formulated by the PEZA.
SEC. 7. ECOZONE to be a Decentralized Agro-Industrial, Industrial, Commercial / Trading, Tourist, Investment and Financial Community. - Within the framework of the Constitution, the interest of national sovereignty and territorial integrity of the Republic, ECOZONE shall be developed, as much as possible, into a decentralized, self-reliant and self-sustaining industrial, commercial/trading, agro-industrial, tourist, banking, financial and investment center with minimum government intervention. Each ECOZONE shall be provided with transportation, telecommunications, and other facilities needed to generate linkage with industries and employment opportunities for its own inhabitants and those of nearby towns and cities.
The ECOZONE shall administer itself on economic, financial, industrial, tourism development and such other matters within the exclusive competence of the national government.
The ECOZONE may establish mutually beneficial economic relations with other entities within the country, or, subject to the administrative guidance of the Department of Foreign Affairs and/or the Department of Trade and Industry, with foreign entities or enterprises.
Foreign citizens and companies owned by non-Filipinos in whatever proportion may set up enterprises in the ECOZONE, either by themselves or in joint venture with Filipinos in any sector of industry, international trade and commerce within the ECOZONE. Their assets, profits and other legitimate interests shall be protected: Provided, That the ECOZONE through the PEZA may require a minimum investment for any ECOZONE enterprises in freely convertible currencies: Provided, further, That the new investment shall fall under the priorities, thrusts and limits provided for in the Act.
SEC. 8. ECOZONE to be Operated and Managed as Separate Customs Territory. – The ECOZONE shall be managed and operated by the PEZA as separate customs territory.
The PEZA is hereby vested with the authority to issue certificate of origin for products manufactured or processed in each ECOZONE in accordance with the prevailing rules or origin, and the pertinent regulations of the Department of Trade and Industry and/or the Department of Finance.
SEC. 9. Defense and Security. – The defense of the ECOZONE and the security of its perimeter fence shall be the responsibility of the national government in coordination with the PEZA. Military forces sent by the national government for the purpose of defense shall not interfere in the internal affairs of any of the ECOZONE and expenditure for these military forces shall be borne by the national government. The PEZA may provide and establish the ECOZONES’ internal security and firefighting forces.
SEC. 10. Immigration. – Any investor within the ECOZONE whose initial investment shall not be less than One Hundred Fifty Thousand Dollars ($150,000.00), his/her spouse and dependent children under twenty-one (21) years of age shall be granted permanent resident status within the ECOZONE. They shall have freedom of ingress and egress to and from the ECOZONE without any need of special authorization from the Bureau of Immigration.
The PEZA shall issue working visas renewable every two (2) years to foreign executives and other aliens, processing highly-technical skills which no Filipino within the ECOZONE possesses, as certified by the Department of Labor and Employment. The names of aliens granted permanent resident status and working visas by the PEZA shall be reported to the Bureau of Immigration within thirty (30) days after issuance thereof.
SEC. 13. General Powers and Functions of the Authority. – The PEZA shall have the following powers and functions:
(a) To operate, administer, manage and develop the ECOZONE according to the principles and provisions set forth in this Act;
(b) To register, regulate and supervise the enterprises in the ECOZONE in an efficient and decentralized manner;
(c) To coordinate with local government units and exercise general supervision over the development, plans, activities and operations of the ECOZONES, industrial estates, export processing zones, free trade zones, and the like;
(d) In coordination with local government units concerned and appropriate agencies, to construct, acquire, own, lease, operate and maintain on its own or through contract, franchise, license, bulk purchase from the private sector and build-operate-transfer scheme or joint venture, adequate facilities and infrastructure, such as light and power systems, water supply and distribution systems, telecommunication and transportation, buildings, structures, warehouses, roads, bridges, ports and other facilities for the operation and development of the ECOZONE;
(e) To create, operate and/or contract to operate such agencies and functional units or offices of the authority as it may deem necessary;
(f) To adopt, alter and use a corporate seal; make contracts, lease, own or otherwise dispose of personal or real property; sue and be sued; and otherwise carry out its duties and functions as provided for in this Act;
(g) To coordinate the formulation and preparation of the development plans of the different entities mentioned above;
(h) To coordinate with the National Economic Development Authority (NEDA), the Department of Trade and Industry (DTI), the Department of Science and Technology (DOST), and the local government units and appropriate government agencies for policy and program formulation and implementation; and
(i) To monitor and evaluate the development and requirements of entities in subsection (a) and recommend to the local government units or other appropriate authorities the location, incentives, basic services, utilities and infrastructure required or to be made available for said entities.
SEC. 17. Investigation and Inquiries. – Upon a written formal complaint made under oath, which on its face provides reasonable basis to believe that some anomaly or irregularity might have been committed, the PEZA or the administrator of the ECOZONE concerned, shall have the power to inquire into the conduct of firms or employees of the ECOZONE and to conduct investigations, and for that purpose may subpoena witnesses, administer oaths, and compel the production of books, papers, and other evidences: Provided, That to arrive at the truth, the investigator(s) may grant immunity from prosecution to any person whose testimony or whose possessions of documents or other evidence is necessary or convenient to determine the truth in any investigation conducted by him or under the authority of the PEZA or the administrator of the ECOZONE concerned.
SEC. 21. Development Strategy of the ECOZONE. - The strategy and priority of development of each ECOZONE established pursuant to this Act shall be formulated by the PEZA, in coordination with the Department of Trade and Industry and the National Economic and Development Authority; Provided, That such development strategy is consistent with the priorities of the national government as outlined in the medium-term Philippine development plan. It shall be the policy of the government and the PEZA to encourage and provide Incentives and facilitate private sector participation in the construction and operation of public utilities and infrastructure in the ECOZONE, using any of the schemes allowed in Republic Act No. 6957 (the build-operate-transfer law).
SEC. 22. Survey of Resources. The PEZA shall, in coordination with appropriate authorities and neighboring cities and
municipalities, immediately conduct a survey of the physical, natural assets and potentialities of the ECOZONE areas under its
jurisdiction.
SEC. 26. Domestic Sales. – Goods manufactured by an ECOZONE enterprise shall be made available for immediate retail sales in the domestic market, subject to payment of corresponding taxes on the raw materials and other regulations that may be adopted by the Board of the PEZA.
However, in order to protect the domestic industry, there shall be a negative list of Industries that will be drawn up by the PEZA. Enterprises engaged in the industries included in the negative list shall not be allowed to sell their products locally. Said negative list shall be regularly updated by the PEZA.
The PEZA, in coordination with the Department of Trade and Industry and the Bureau of Customs, shall jointly issue the necessary implementing rules and guidelines for the effective Implementation of this section.
SEC. 29. Eminent Domain. – The areas comprising an ECOZONE may be expanded or reduced when necessary. For this purpose, the government shall have the power to acquire, either by purchase, negotiation or condemnation proceedings, any private lands within or adjacent to the ECOZONE for:
a. Consolidation of lands for zone development purposes;
b. Acquisition of right of way to the ECOZONE; and
c. The protection of watershed areas and natural assets valuable to the prosperity of the ECOZONE.
If in the establishment of a publicly-owned ECOZONE, any person or group of persons who has been occupying a parcel of land within the Zone has to be evicted, the PEZA shall provide the person or group of persons concerned with proper disturbance compensation: Provided, however, That in the case of displaced agrarian reform beneficiaries, they shall be entitled to the benefits under the Comprehensive Agrarian Reform Law, including but not limited to Section 36 of Republic Act No. 3844, in addition to a homelot in the relocation site and preferential employment in the project being undertaken.
SEC. 32. Shipping and Shipping Register. – Private shipping and related business including private container terminals may operate freely in the ECOZONE, subject only to such minimum reasonable regulations of local application which the PEZA may prescribe.
The PEZA shall, in coordination with the Department of Transportation and Communications, maintain a shipping register for each ECOZONE as a business register of convenience for ocean-going vessels and issue related certification.
Ships of all sizes, descriptions and nationalities shall enjoy access to the ports of the ECOZONE, subject only to such reasonable requirement as may be prescribed by the PEZA In coordination with the appropriate agencies of the national government.
SEC. 33. Protection of Environment. - The PEZA, in coordination with the appropriate agencies, shall take concrete and appropriate steps and enact the proper measure for the protection of the local environment.
SEC. 34. Termination of Business. - Investors In the ECOZONE who desire to terminate business or operations shall comply with such requirements and procedures which the PEZA shall set, particularly those relating to the clearing of debts. The assets of the closed enterprise can be transferred and the funds con be remitted out of the ECOZONE subject to the rules, guidelines and procedures prescribed jointly by the Bangko Sentral ng Pilipinas, the Department of Finance and the PEZA.
SEC. 35. Registration of Business Enterprises. - Business enterprises within a designated ECOZONE shall register with the PEZA to avail of all incentives and benefits provided for in this Act.
SEC. 36. One Stop Shop Center. - The PEZA shall establish a one stop shop center for the purpose of facilitating the registration of new enterprises in the ECOZONE. Thus, all appropriate government agencies that are Involved In registering, licensing or issuing permits to investors shall assign their representatives to the ECOZONE to attend to Investor’s requirements.
SEC. 39. Master Employment Contracts. - The PEZA, in coordination with the Department of Tabor and Employment, shall prescribe a master employment contract for all ECOZONE enterprise staff members and workers, the terms of which provide salaries and benefits not less than those provided under this Act, the Philippine Labor Code, as amended, and other relevant issuances of the national government.
SEC. 41. Migrant Worker. - The PEZA, in coordination with the Department of Labor and Employment, shall promulgate appropriate measures and programs leading to the expansion of the services of the ECOZONE to help the local governments of nearby areas meet the needs of the migrant workers.
SEC. 42. Incentive Scheme. - An additional deduction equivalent to one- half (1/2) of the value of training expenses incurred in developing skilled or unskilled labor or for managerial or other management development programs incurred by enterprises in the ECOZONE can be deducted from the national government's share of three percent (3%) as provided In Section 24.
The PEZA, the Department of Labor and Employment, and the Department of Finance shall jointly make a review of the incentive scheme provided In this section every two (2) years or when circumstances so warrant.
SEC. 43. Relationship with the Regional Development Council. - The PEZA shall determine the development goals for the ECOZONE within the framework of national development plans, policies and goals, and the administrator shall, upon approval by the PEZA Board, submit the ECOZONE plans, programs and projects to the regional development council for inclusion in and as inputs to the overall regional development plan.
SEC. 44. Relationship with the Local Government Units. - Except as herein provided, the local government units comprising the ECOZONE shall retain their basic autonomy and identity. The cities shall be governed by their respective charters and the municipalities shall operate and function In accordance with Republic Act No. 7160, otherwise known as the Local Government
Code of 1991.
SEC. 45. Relationship of PEZA to Privately-Owned Industrial Estates. – Privately-owned industrial estates shall retain their autonomy and independence and shall be monitored by the PEZA for the implementation of incentives.
SEC. 46. Transfer of Resources. - The relevant functions of the Board of Investments over industrial estates and agri-export processing estates shall be transferred to the PEZA. The resources of government-owned Industrial estates and similar bodies except the Bases Conversion Development Authority and those areas identified under Republic Act No. 7227, are hereby transferred to the PEZA as the holding agency. They are hereby detached from their mother agencies and attached to the PEZA for policy, program and operational supervision.
The Boards of the affected government-owned industrial estates shall be phased out and only the management level and an appropriate number of personnel shall be retained.
Government personnel whose services are not retained by the PEZA or any government office within the ECOZONE shall be entitled to separation pay and such retirement and other benefits they are entitled to under the laws then in force at the time of their separation: Provided, That in no case shall the separation pay be less than one and one-fourth (1 1/4) month of every year of service.
Sec. 24. Exemption from National and Local Taxes. — Except for real property taxes on land owned by developers, no taxes, local and national, shall be imposed on business establishments operating within the ECOZONE. In lieu thereof, five percent (5%) of the gross income earned by all business enterprises within the ECOZONE shall be paid and remitted as follows:chanroblesvirtuallawlibrary(a) Three percent (3%) to the National Government;
(b) Two percent (2%) which shall be directly remitted by the business establishments to the treasurer's office of the municipality or city where the enterprise is located. (Emphasis supplied)
SEC. 234. Exemptions from Real Property Tax. – The following are exempted from payment of real property tax:
(a) Real property owned by the Republic of the Philippines or any of its political subdivisions except when the beneficial use thereof has been granted, for consideration or otherwise, to a taxable person[.]
Art. 420. The following things are property of public dominion:
(1) Those intended for public use, such as roads, canals, rivers, torrents, ports and bridges constructed by the State, banks, shores, roadsteads, and others of similar character;
(2) Those which belong to the State, without belonging for public use, and are intended for some public service or for the development of the national wealth.
Properties of public dominion, being for public use, are not subject to levy, encumbrance or disposition through public or private sale. Any encumbrance, levy on execution or auction sale of any property of public dominion is void for being contrary to public policy. Essential public services will stop if properties of public dominion are subject to encumbrances, foreclosures and auction sale[.]279
Art. 421. All other property of the State, which is not of the character stated in the preceding article, is patrimonial property.
SEC. 4. Powers and Duties. – The Foreign Trade Zone Authority shall have the following powers and duties:
- To fix and delimit the site of the Zone which at all times remain to be owned by the Government, and which shall have a contiguous and adequate area with well defined and policed boundaries, with adequate enclosures to segregate the Zone from the customs territory for protection of revenues, together with suitable provisions for ingress and egress of persons, conveyance, vessels and merchandise sufficient for the purpose of this Act[.] (Emphasis supplied)
SEC. 48. Official Authorized to Convey Real Property. – Whenever real property of the government is authorized by law to be conveyed, the deed of conveyance shall be executed in behalf of the government by the following:
. . . .
(2) For property belonging to the Republic of the Philippines, but titled in the name of any political subdivision or of any corporate agency or instrumentality, by the executive head of the agency or instrumentality. (Emphasis supplied)
[The exemption under Section 234(a) of the Local Government Code] should be read in relation with Section 133(o) of the same Code, which prohibits local governments from imposing “[t]axes, fess or charges of any kind on the National Government, its agencies and instrumentalities x x x.” The real properties owned by the Republic are titled either in the name of the Republic itself or in the name of agencies or instrumentalities of the National Government. The Administrative Code allows real property owned by the Republic to be titled in the name of agencies or instrumentalities of the national government. Such real properties remained owned by the Republic of the Philippines and continue to be exempt from real estate tax.
The Republic may grant the beneficial use of its real property to an agency or instrumentality of the national government. This happens when title of the real property is transferred to an agency or instrumentality even as the Republic remains the owner of the real property. Such arrangement does not result in the loss of the tax exemption/ Section 234(a) of the Local Government Code states that real property owned by the Republic loses its tax exemption only if the “beneficial use thereof has been granted, for consideration or otherwise, to a taxable person.” . . .290 (Emphasis in the original; italics supplied)
SEC. 24. Exemption from National and Local Taxes. – Except for real property on land owned by developers, no taxes, local and national, shall be imposed on business establishments operating within the ECOZONE. In lieu thereof, five percent (5%) of the gross income earned by all business enterprises within the ECOZONE shall be paid and remitted as follows:
a. Three percent (3%) to the National Government;
b. Two percent (2%) which shall be directly remitted by the business establishments to the treasurer’s office of the municipality or city where the enterprise is located.292 (Emphasis supplied)
SEC. 24. Exemption from National and Local Taxes. – Except for real property on land owned by developers, no taxes, local and national, shall be imposed on business establishments operating within the ECOZONE. In lieu thereof, five percent (5%) of the gross income earned by all business enterprises within the ECOZONE shall be paid and remitted as follows:
a. Three percent (3%) to the National Government;
b. Two percent (2%) which shall be directly remitted by the business establishments to the treasurer’s office of the municipality or city where the enterprise is located.293 (Emphasis supplied)
Section 6. Imposition of a Tax Rate of Five Percent (5%) on Gross Income Earned. - No taxes, local and national, shall be imposed on business establishments operating within the FAB. In lieu thereof, said business establishments shall pay a five percent (5%) final tax on their gross income earned in the following percentages:
(a) One per centum (1%) to the National Government;
(b) One per centum (1%) to the Province of Bataan;
(c) One per centum (1%) to the treasurer's office of the Municipality of Mariveles; and
(d) Two per centum (2%) to the Authority of the Freeport of Area of Bataan.294 (Emphasis supplied)
Endnotes:
* Designated Acting Member per Special Order No. 1881 dated November 25, 2014.
1 Resolution dated March 14, 2011.
2Rollo (G.R. No. 184203), pp. 51–54. This decision in CA-G.R. CV No. 88318 was penned by Associate Justice Josefina Guevara-Salonga with Associate Justices Vicente Q. Roxas and Ramon R. Garcia concurring.
3 Id. at 48–49.
4Rollo (G.R. No. 187583), pp. 57–68. This decision in CA-G.R. SP No. 100984 was penned by Associate Justice Marlene Gonzales-Sison with Associate Justices Juan Q. Enriquez, Jr. and Isaias P. Dicdican concurring.
5 Id. at 69–71.
6 Proc. No. 1081 dated September 21, 1972.
7 Pres. Decree No. 66 (1972), sec. 1.
8 Rep. Act No. 5490 (1969), sec. 2.
9 Pres. Decree No.66 (1972), sec. 4(a).
10 Pres. Decree No. 66 (1972), sec. 21.
11 Pres. Decree No. 66 (1972), sec. 21.
12 Pres. Decree No. 66 (1972), sec. 21(a).
13 Rep. Act No. 7916 (1995), sec. 11.
14 Rep. Act No. 7916 (1995), sec. 13(a).
15 Rep. Act No. 7916 (1995), sec. 13(b).
16 Rep. Act No. 7916 (1995), sec. 5(ll).
17 Rep. Act No. 7916 (1995), sec. 5(m).
18 Rep. Act No. 7916 (1995), sec. 11.
19 Exec. Order No. 282 (1995), sec. 1.
20 Exec. Order No. 282 (1995), sec. 2.
21 RTC records (Civil Case No. 02-0410), p. 16.
22 Id. at 17–20.
23 RTC records, pp. 20–21, dated July 14, 1998; p. 22, dated December 22, 1998; p. 23, dated January 28, 1999; pp. 24–25, dated March 8, 1999; p. 26, dated May 29, 2000; pp. 27–31, dated December 13, 1999; pp. 32–33, dated May 2, 2000.
24 RTC records, pp. 34–35.
25 Id. at 2–15.
26 Id. at 79–88.
27 Id. at 83–87.
28 Id. at 119–124.
29 Id. at 167–173.
30 RULES OF COURT, Rule 63, sec. 3 provides:
Notice on Solicitor General. – In any action which involves the validity of a statute, executive order or regulation, or any other governmental regulation, the Solicitor General shall be notified by the party assailing the same and shall be entitled to be heard upon such question.
31 RTC records, pp. 137–166.
32 Id. at 179–191. This resolution was penned by Judge Wilhelmina B. Jorge-Wagan.
33 Id. at 200–227.
34 Id. at 262.
35 CA rollo (CA-G.R. CV No. 88318), pp. 12–44.
36Rollo (G.R. No. 184203), pp. 51–54.
37 CA rollo (CA-G.R. CV No. 88318), pp. 127–130.
38 Id. at 131.
39 Id. at 132–149.
40Rollo (G.R. No. 184203), pp. 48–49.
41 Id. at 21–46.
42 Id. at 36.
43 Id. at 33.
44 Id. at 34.
45 Id. at 40–42.
46 Id. at 76.
47Rollo (G.R. No. 184203), p. 91, resolution dated November 17, 2008.
48 Id. at 118–124.
49 Id. at 124–128.
50 Id. at 129–135.
51 Id. at 136–138.
52 Id. at 138–139.
53 Id. at 141–145.
54 Id. at 145–149.
55 CA rollo (CA-G.R. SP No. 100984), p. 100.
56 Id. at 101.
57 Id. at 102.
58 Id.
59 Id. at 103.
60 Id. at 104–106.
61 Id. at 107.
62 Id. at 108–109.
63 Id. at 110–111.
64 CA rollo (CA-G.R. SP No. 100984), pp. 112–113, dated April 28, 2004; pp. 115–116, dated May 5, 2004.
65 Id. at 114, dated April 30, 2004; p. 117, dated May 7, 2004.
66 Id. at 118–119.
67 Id. at 120–122.
68 Id. at 123–125.
69 Id. at 126–135.
70 Rep. Act No. 7160 (1991), sec. 260 provides:
SECTION 260. Advertisement and Sale. – Within thirty (30) days after service of the warrant of levy, the local treasurer shall proceed to publicly advertise for sale or auction the property or a usable portion thereof as may be necessary to satisfy the tax delinquency and expenses of sale. The advertisement shall be effected by posing a notice at the main entrance of the provincial, city or municipal building, and in a publicly accessible and conspicuous place in the barangay where the real property is located, and by publication once a week for two (2) weeks in a newspaper of general circulation in the province, city or municipality where the property is located. The advertisement shall specify the amount of the delinquent tax, the interest due thereon and expense of sale, the date and place of sale, the name of the owner of the real property or person having legal interest therein, and a description of the property to be sold[.]
71 CA rollo (CA-G.R. SP No. 100984), p. 140.
72 Id. at 143–144.
73 Id. at 141–142.
74 Id. at 14.
75 Id. at 51–52. This decision was penned by Judge Francisco G. Mendiola.
76 Id. at 52.
77 Id. at 53.
78 Id. at 2–49.
79 Id. at 244–245.
80 Id. at 251–260.
81 Id. at 261–299.
82 Id. at 300–330.
83 Id. at 332–334.
84 Id. at 369–393.
85 Id. at 414–440.
86 Id. at 459–163.
87 Id. at 464–482.
88Rollo (G.R. No. 187583), p. 68.
89 Id. at 61.
90 Id. at 62.
91 Id. at 62–64.
92 528 Phil. 181 (2006) [Per J. Carpio, En Banc].
93Rollo (G.R. No. 187583), p. 65.
94 Id. at 57–68.
95 CA rollo (CA-G.R. SP No. 100984), pp. 496–520.
96Rollo (G.R. No. 187583), pp. 69–70.
97 Id. at 16–56.
98 Id. at 25–29.
99 Id. at 41–42.
100 Id. at 46–48.
101 Id. at 76, resolution dated July 29, 2009.
102 Id. at 94–120.
103 Id. at 129–143.
104 Id. at 158–190.
105 Resolution dated March 14, 2011.
106 RULES OF COURT, Rule 41, sec. 2(a).
107 RULES OF COURT, Rule 41, sec. 2(b).
108 RULES OF COURT, Rule 41, sec. 2(c).
109Far Eastern Surety and Insurance Co., Inc., v. People, G.R. No. 170618, November 20, 2013, 710 SCRA 358, 365 [Per J. Brion, Second Division]; Republic v. Malabanan, G.R. No. 169067, October 6, 2010, 632 SCRA 338, 345 [Per J. Villarama, Jr., Third Division].
110Far Eastern Surety and Insurance Co., Inc. v. People, G.R. No. 170618, November 20, 2013, 710 SCRA 358, 365 [Per J. Brion, Second Division]; Republic v. Malabanan, G.R. No. 169067, October 6, 2010, 632 SCRA 338, 345 [Per J. Villarama, Jr., Third Division].
111 G.R. No. 193706, March 12, 2013, 693 SCRA 201 [Per C.J. Sereno, En Banc].
112 Id. at 207, citing Ybañez v. Court of Appeals, 323 Phil. 643 (1996) [Per J. Francisco, Third Division].
113 Id. at 207–208.
114Municipality of Pateros v. Hon. Court of Appeals, et al., 607 Phil. 104, 114 (2009) [Per J. Nachura, Third Division]; Sevilleno v. Carilo, 559 Phil. 789, 792 (2007) [Per J. Sandoval-Gutierrez, First Division].
115See Republic v. City of Parañaque, G.R. No. 191109, July 18, 2012, 677 SCRA 246, 257–260 [Per J. Mendoza, Third Division]; Government Service Insurance System v. City Assessor of Manila, G.R. No. 186242, December 23, 2009, 609 SCRA 330, 349 [Per J. Velasco, Jr., Third Division]; National Housing Authority v. Iloilo City, et al., 584 Phil. 604, 609–610 (2008) [Per J. Tinga, Second Division]; Philippine Fisheries Development Authority v. The Honorable Court of Appeals, 560 Phil. 738, 748 (2007) [Per J. Azcuna, First Division]; Manila International Airport Authority v. Court of Appeals, 528 Phil. 181, 209–213 (2006) [Per J. Carpio, En Banc].
116Municipality of Pateros v. The Honorable Court of Appeals, 607 Phil. 104 (2009) [Per J. Nachura, Third Division].
117 Id. at 114.
118 Id.
119 Id.
120 Id. at 115, citing Tabujara III v. People, 591 Phil. 216, 231 (2008) [Per J. Chico-Nazario, Third Division].
121 See Spouses Sabitsana v. Muertegui, G.R. No. 181359, August 5, 2013, 703 SCRA 145, 158–159 [Per J. Del Castillo, Second Division]; See also Allied Broadcasting Center, Inc. v. Republic, 268 Phil. 852, 857 (1990) [Per J. Gancayco, En Banc] cited in W. B. Riano, II Civil Procedure (The Bar Lecture Series) 216 (2012).
122 RULES OF COURT, Rule 63, sec. 1.
123 RULES OF COURT, Rule 63, sec. 1.
124Republic v. Roque, G.R. No. 204603, September 24, 2013, 706 SCRA 273, 283 [Per J. Perlas-Bernabe, En Banc].
125 Ollada v. Central Bank of the Philippines, 115 Phil. 284, 291 (1962) [Per J. Dizon, En Banc].
126Republic v. Roque, G.R. No. 204603, September 24, 2013, 706 SCRA 273, 283 [Per J. Perlas-Bernabe, En Banc].
127 115 Phil. 284 (1962) [Per J. Dizon, En Banc].
128 Id.
129 Id. at 285.
130 Id. at 291.
131 Id.
132 Id.
133 Republic v. Roque, G.R. No. 204603, September 24, 2013, 706 SCRA 273, 283 [Per J. Perlas-Bernabe, En Banc].
134 Id.
135 Id.
136Velarde v. Social Justice Society, G.R. No. 159357, April 28, 2004, 428 SCRA 283, 293 [Per J. Panganiban, En Banc].
137 G.R. No. 204603, September 24, 2013, 706 SCRA 273 [Per J. Perlas-Bernabe, En Banc].
138 Id. at 284.
139 G.R. No. 159357, April 28, 2004, 428 SCRA 283 [Per J. Panganiban, En Banc].
140 Id. at 286.
141 Id. at 291–293.
142 Id. at 283, citing Almeda v. Bathala Marketing Industries, Inc., 566 Phil. 458, 467 (2008) [Per J. Nachura, Third Division].
143Boston Equity Resources, Inc. v. Court of Appeals, G.R. No. 173946, June 19, 2013, 699 SCRA 16, 28 [Per J. Perez, Second Division].
144Villagracia v. Fifth (5th) Shari’a District Court, G.R. No. 188832, April 23, 2014 [Per J. Leonen, Third Division].
145 Id.
146 Philippine Association of Free Labor Unions (PAFLU) v. Padilla, 106 Phil. 591, 593 (1959) [Per J. Labrador, En Banc]; Perkins v. Roxas, 72 Phil. 514, 517 (1941) [Per J. Laurel, En Banc].
147Villagracia v. Fifth (5th) Shari’a District Court, G.R. No. 188832, April 23, 2014 [Per J. Leonen, Third Division].
148 Id.
149 Id.
150 Id.
151 Id.
152 Id.
153 Id.
154 Id.
155 Id.
156 Id.
157 616 Phil. 177 (2009) [Per J. Chico-Nazario, Third Division].
158 Id. at 188–189.
159National Power Corporation v. Province of Quezon, G.R. No. 171586, January 25, 2010, 611 SCRA 71, 91 [Per J. Brion, Special Second Division].
160 Id. at 95.
161 Id.
162Ty v. Trampe, 321 Phil. 81, 101 (1995) [Per J. Panganiban, En Banc]. See J. Carpio, concurring opinion, in Camp John Hay Development Corporation v. Central Board of Assessment Appeals, G.R. No. 169234, October 2, 2013, 706 SCRA 547, 578 [Per J. Perez, Second Division].
163 321 Phil. 81 (1995) [Per J. Panganiban, En Banc].
164 Id. at 101.
165 Id.
166Ollada v. Central Bank of the Philippines, 115 Phil. 284, 291 (1962) [Per J. Dizon, En Banc].
167Agoo Rice Mill Corporation v. Land Bank of the Philippines, G.R. No. 173036, September 26, 2012, 682 SCRA 36, 46 [Per J. Brion, Second Division]; Garayblas v. Atienza, Jr,. 525 Phil. 291, 306 (2006) [Per J. Callejo, Sr., First Division]; Bacolod City Water District v. Labayen, 487 Phil. 335, 346 (2004) [Per J. Puno, Second Division].
168 Id.
169Agoo Rice Mill Corporation v. Land Bank of the Philippines, G.R. No. 173036, September 26, 2012, 682 SCRA 36, 46 [Per J. Brion, Second Division].
170Villagracia v. Fifth (5th) Shari’a District Court, G.R. No. 188832, April 23, 2014 [Per J. Leonen, Third Division].
171Nocum v. Tan, 507 Phil. 620, 626 (2005) [Per J. Chico-Nazario, Second Division].
172Villagracia v. Fifth (5th) Shari’a District Court, G.R. No. 188832, April 23, 2014 [Per J. Leonen, Third Division].
173 Id., citing Ibrahim v. Commission on Elections, G.R. No. 192289, January 8, 2013, 688 SCRA 129, 145 [Per J. Reyes, En Banc], citing Republic v. Bantigue Point Development Corporation, G.R. No. 162322, March 14, 2012, 668 SCRA 158 [Per J. Sereno, Second Division]; Figueroa v. People of the Philippines, 580 Phil. 58, 76 (2008) [Per J. Nachura, Third Division]; Mangaliag v. Catubig-Pastoral, 510 Phil. 637, 648 (2005) [Per J. Austria-Martinez, Second Division]; Calimlim v. Ramirez, 204 Phil. 25, 35 (1982) [Per J. Vasquez, First Division].
174 Rules of Court, Rule 9, sec. 1; Villagracia v. Fifth (5th) Shari’a District Court, G.R. No. 188832, April 23, 2014 [Per J. Leonen, Third Division].
175 Nocum v. Tan, 507 Phil. 620, 629 (2005) [Per J. Chico-Nazario, Second Division].
176 Id. at 626.
177 RULES OF COURT, Rule 9, sec. 1.
178Rudolf Lietz Holding, Inc. v. The Registry of Deeds of Parañaque City, 398 Phil. 626, 633 (2000) [Per J. Ynares-Santiago, First Division]. However, a court may motu proprio dismiss the case on any grounds for the dismissal of a civil action if the case falls under summary procedure per Section 4 of the 1991 Revised Rule on Summary Procedure.
179 RULES OF COURT, Rule 4, sec. 1.
180 RULES OF COURT, Rule 4, sec. 2.
181 RULES OF COURT, Rule 9, sec. 1.
182 Samson v. Hon. Fiel-Macaraig, G.R. No. 166356, February 2, 2010, 611 SCRA 345, 351 [Per J. Carpio, Second Division]; Bugarin v. Palisoc, 513 Phil. 59, 66 (2005) [Per J. Quisumbing, First Division]; Association of Integrated Security Force of Bislig (AISFB)-ALU v. Hon. Court of Appeals, 505 Phil. 10, 18 (2005) [Per J. Chico-Nazario, Second Division].
183Mendiola v. Court of Appeals, 327 Phil. 1156, 1164 (1996) [Per J. Hermosisima, Jr., First Division]; Nabus v. The Honorable Court of Appeals, 271 Phil. 768, 779 (1991) [Per J. Regalado, Second Division].
184Mendiola v. Court of Appeals, 327 Phil. 1156, 1164 (1996) [Per J. Hermosisima, Jr., First Division]; Nabus v. The Honorable Court of Appeals, 271 Phil. 768, 779–780 (1991) [Per J. Regalado, Second Division].
185Mendiola v. Court of Appeals, 327 Phil. 1156, 1164 (1996) [Per J. Hermosisima, Jr., First Division]; Nabus v. The Honorable Court of Appeals, 271 Phil. 768, 780 (1991) [Per J. Regalado, Second Division].
186Mendiola v. Court of Appeals, 327 Phil. 1156, 1165 (1996) [Per J. Hermosisima, Jr., First Division]; Nabus v. The Honorable Court of Appeals, 271 Phil. 768, 780 (1991) [Per J. Regalado, Second Division].
187 RULES OF COURT, Rule 65, sec. 1.
188 Black’s Law Dictionary, Eighth Edition 241 (2004).
189 G.R. No. 153852, October 24, 2012, 684 SCRA 410 [Per J. Bersamin, First Division].
190 Id. at 420–421.
191Madrigal Transport, Inc. v. Lapanday Holdings Corp., 479 Phil. 768, 780–781 (2004) [Per J. Panganiban, Third Division].
192 Id. at 781.
193 RULES OF COURT, Rule 45, sec. 2.
194 Madrigal Transport, Inc. v. Lapanday Holdings Corp., 479 Phil. 768, 781 [Per J. Panganiban, Third Division].
195 RULES OF COURT, Rule 65, sec. 1.
196 RULES OF COURT, Rule 65, sec. 4.
197Bugarin v. Palisoc, 513 Phil. 59, 66 (2005) [Per J. Quisumbing, First Division]; Association of Integrated Security Force of Bislig (AISFB)-ALU v. Hon. Court of Appeals, 505 Phil. 10, 18 (2005) [Per J. Chico-Nazario, Second Division].
198Rollo (G.R. No. 187583), pp. 31–32.
199The City of Manila v. Hon. Grecia-Cuerdo, G.R. No. 175723, February 4, 2014 [Per J. Peralta, En Banc]; Oaminal v. Castillo, 459 Phil. 542, 556 (2003) [Per J. Panganiban, Third Division].
200The City of Manila v. Hon. Grecia-Cuerdo, G.R. No. 175723, February 4, 2014 [Per J. Peralta, En Banc]; Oaminal v. Castillo, 459 Phil. 542, 556 (2003) [Per J. Panganiban, Third Division].
201 Oaminal v. Castillo, 459 Phil. 542, 557 (2003) [Per J. Panganiban, Third Division].
202 Id., citing Delsan Transport Lines, Inc. v. CA, 335 Phil. 1066, 1075 (1997) [Per J. Mendoza, Second Division].
203Sebastian v. Morales, 445 Phil. 595, 605 (2003) [Per J. Quisumbing, Second Division].
204 Id.
205 CA rollo (CA-G.R. SP No. 100984), p. 2.
206 Id. at 7.
207 Id. at 33–34.
208 LOCAL GOVT. CODE, sec. 247 provides;
SEC. 247. Collection of Tax. - The collection of the real property tax with interest thereon and related expenses, and the enforcement of the remedies provided for in this Title or any applicable laws, shall be the responsibility of the city or municipal treasurer concerned. The city or municipal treasurer may deputize the barangay treasurer to collect all taxes on real property located in the barangay: Provided, That the barangay treasurer is properly bonded for the purpose: Provided, further, That the premium on the bond shall be paid by the city or municipal government concerned.
209 TAX CODE, Title I, sec. 2 provides:
SEC. 2. Powers and duties of the Bureau of Internal Revenue. - The Bureau of Internal Revenue shall be under the supervision and control of the Department of Finance and its powers and duties shall comprehend the assessment and collection of all national internal revenue taxes, fees, and charges, and the enforcement of all forfeitures, penalties, and fines connected therewith, including the execution of judgments in all cases decided in its favor by the Court of Tax Appeals and the ordinary courts. The Bureau shall give effect to and administer the supervisory and police powers conferred to it by this Code or other laws.
210 LOCAL GOVT CODE, sec. 256 provides:
SEC. 256. Remedies For The Collection Of Real Property Tax. - For the collection of the basic real property tax and any other tax levied under this Title, the local government unit concerned may avail of the remedies by administrative action thru levy on real property or by judicial action.
211 LOCAL GOVT CODE, sec. 266 provides:
SEC. 266. Collection of Real Property Tax Through the Courts. – The local government unit concerned may enforce the collection of the basic real property tax or any other tax levied under this Title by civil action in any court of competent jurisdiction. The civil action shall be filed by the local treasurer within the period prescribed in Section 270 of this Code.
212Phil. Refining Co. v. Court of Appeals, 326 Phil. 680, 689 (1996) [Per J. Regalado, Second Division].
213 G.R. No. 175723, February 4, 2014 [Per J. Peralta, En Banc].
214 AN ACT CREATING THE COURT OF TAX APPEALS (1954).
215 CONST., art. viii, sec. 1 provides:
Section 1. The judicial power shall be vested in one Supreme Court and in such lower courts as may be established by law.
Judicial power includes the duty of the courts of justice to settle actual controversies involving rights which are legally demandable and enforceable, and to determine whether or not there has been a grave abuse of discretion amounting to lack or excess of jurisdiction on the part of any branch or instrumentality of the Government.
216The City of Manila v. Hon. Grecia-Cuerdo, G.R. No. 175723, February 4, 2014 [Per J. Peralta, En Banc].
217 Id.
218See City of Iriga v. Camarines Sur III Electric Cooperative, Inc. (CASURECO III), G.R. No. 192945, September 5, 2012, 680 SCRA 236, 244 [Per J. Perlas-Bernabe, Second Division].
219See Land Bank of the Philippines v. Court of Appeals, G.R. No. 190660, April 11, 2011, 647 SCRA 561, 567 [Per J. Carpio Morales, Third Division].
220 Rep. Act No. 7160, sec. 252.
221 Rep. Act No. 7160, sec. 226.
222 Rep. Act No. 7160, sec. 229(a).
223 Rep. Act No. 7160, sec. 229(c).
224 Rep. Act No. 1125, as amended by Rep. Act No. 9282, sec. 7(a)(5); Rules of Procedure in the COURT OF TAX APPEALS, Rule 4, sec. 2(e).
225 Rules of Procedure in the COURT OF TAX APPEALS, Rule 8, sec. 4(c).
226 Rep. Act No. 1125 (1954), as amended by Rep. Act No. 9282 (2004), sec. 19.
227 Ty v. Trampe, 321 Phil. 81, 101–102 (1995) [Per J. Panganiban, En Banc].
228 Batas Blg. 129 (1994), sec. 19; Bank of the Philippine Islands v. Hong, G.R. No. 161771, February 15, 2012, 666 SCRA 71, 78 [Per J. Villarama, Jr., First Division].
229 Rep. Act No. 1125 (1954), as amended by Rep. Act No. 9282 (2004), sec. 7(a)(3).
230 Rep. Act No. 1125 (1954), as amended by Rep. Act No. 9282 (2004), sec. 19.
231 Rep. Act No. 7160 (1991), sec. 267.
232 Rep. Act No. 1125 (1954), as amended by Rep. Act No. 9282 (2004), sec. 7(a)(3).
233 Rep. Act No. 1125 (1954), as amended by Rep. Act No. 9282 (2004), sec. 19.
234 Salud v. The Court of Appeals, G.R. No. 100156, June 27, 1994, 233 SCRA 384, 389 [Per J. Puno, Second Division].
235See Pryce Corporation v. China Banking Corporation, G.R. No. 172302, February 18, 2014, 716 SCRA 207, 235 [Per J. Leonen, En Banc].
236 LOCAL GOVT. CODE, sec. 232.
237 LOCAL GOVT. CODE, sec. 198(c).
238 LOCAL GOVT. CODE, sec. 232.
239Government Service Insurance System v. City Treasurer and City Assessor of the City of Manila, 623 Phil. 964, 982 (2009) [Per J. Velasco, Jr., Third Division], citing Testate Estate of Concordia T. Lim v. City of Manila, 261 Phil. 602, 607 (1990) [Per J. Gutierrez, Jr., Third Division]; Manila Electric Company v. Barlis, 410 Phil. 167, 178 (2001) [Per J. De Leon, Jr., Second Division].
240 330 Phil. 392 (1996) [Per J. Davide, Jr., Third Division].
241 Id. at 410.
242 Id.
243 Id.
244Government Service Insurance System v. City Treasurer and City Assessor of the City of Manila, 623 Phil. 964, 976–977 (2009) [Per J. Velasco, Jr., Third Division].
245 Exec. Order No. 292, Introductory Provisions, sec. 2(10).
246Manila International Airport Authority v. Court of Appeals, 528 Phil. 181, 212–214 (2006) [Per J. Carpio, En Banc].
247Philippine Fisheries Development Authority v. The Honorable Court of Appeals, 555 Phil. 661, 668 (2007) [Per J. Azcuna, First Division].
248Government Service Insurance System v. City Treasurer and City Assessor of the City of Manila, 623 Phil. 964, 978–981 (2009) [Per J. Velasco, Jr., Third Division].
249Republic of the Philippines v. City of Parañaque, G.R. No. 191109, July 18, 2012, 677 SCRA 247, 263 [Per J. Mendoza, Third Division].
250 Rep. Act No. 7916 (1995), sec. 11.
251Beja, Sr. v. Court of Appeals, G.R. No. 97149, March 31, 1992, 207 SCRA 689, 697 [Per J. Romero, En Banc].
252 G.R. No. 97149, March 31, 1992, 207 SCRA 689, 697 [Per J. Romero, En Banc].
253 Id. at 697.
254 Rep. Act No. 7916 (1995), sec. 11.
255 Rep. Act No. 7916 (1995), sec. 13(h).
256 Rep. Act No. 7916 (1995), sec. 21.
257 Rep. Act No. 7916 (1995), sec. 12(d) and 19.
258 Rep. Act No. 7916 (1995), sec. 16.
259 Rep. Act No. 7916 (1995), sec. 13(a).
260 Rep. Act No. 7916 (1995), sec. 4(a)
261 Rep. Act No. 7916 (1995).
262 Rep. Act No. 7916 (1995), sec. 11.
263 CONST., art. XII, sec. 16.
264Republic v. City of Parañaque, G.R. No. 191109, July 18, 2012, 677 SCRA 246, 259 [Per J. Mendoza, Third Division], citing Manila International Airport Authority v. Court of Appeals, 528 Phil. 181, 234–237 (2006) [Per J. Carpio, En Banc].
265Republic v. City of Parañaque, G.R. No. 191109, July 18, 2012, 677 SCRA 246, 262 [Per J. Mendoza, Third Division], citing Manila International Airport Authority v. Court of Appeals, 528 Phil. 181, 237 (2006) [Per J. Carpio, En Banc], citing J. G. Bernas, The 1987 CONSTITUTION OF THE REPUBLIC OF THE PHILIPPINES: A COMMENTARY 1181 (2003).
266Republic v. City of Parañaque, G.R. No. 191109, July 18, 2012, 677 SCRA 246, 262 [Per J. Mendoza, Third Division], citing Manila International Airport Authority v. Court of Appeals, 528 Phil. 181, 237 (2006) [Per J. Carpio, En Banc], citing J. G. Bernas, The 1987 CONSTITUTION OF THE REPUBLIC OF THE PHILIPPINES: A COMMENTARY 1181 (2003).
267Manila International Airport Authority v. Court of Appeals, 528 Phil. 181, 210 (2006) [Per J. Carpio, En Banc].
268 528 Phil. 181 (2006) [Per J. Carpio, En Banc].
269 Id. at 235–237.
270 CORP. CODE, sec. 3 provides:
Classes of corporations. – Corporations formed or organized under this Code may be stock or non-stock corporations. Corporations which have capital stock divided into shares and are authorized to distribute to the holders of such shares dividends or allotments of the surplus profits on the basis of the shares held are stock corporations. All other corporations are non-stock corporations.
271 CORP. CODE, sec. 87 provides:
Definition. – For the purposes of this Code, a non-stock corporation is one where no part of its income is distributable as dividends to its members, trustees, or officers, subject to the provisions of this Code on dissolution: Provided, That any profit which a non-stock corporation may obtain as an incident to its operations shall, whenever necessary or proper, be used for the furtherance of the purpose or purposes for which the corporation was organized, subject to the provisions of this Title.
Republic v. City of Parañaque, G.R. No. 191109, July 18, 2012, 677 SCRA 246, 258 [Per J. Mendoza, Third Division], citing Manila International Airport Authority v. Court of Appeals, 528 Phil. 181, 211–212 (2006) [Per J. Carpio, En Banc].
272 Pres. Decree No. 66, sec. 5 in relation to Exec. Order No. 282 dated October 30, 1995, sec. 1.
273 Rep. Act No. 7916 (1995), sec. 47.
274 The Local Government Code became effective on January 1, 1992. Miguel v. Court of Appeals, G.R. No. 111749, February 23, 1994, 230 SCRA 339, 340 [Per J. Quiason, First Division].
275 COMMONWEALTH ACT No. 470 (1939), sec. 3 provides:
Property exempt from tax. — The exemptions shall be as follows:
(a) Property owned by the United States of America, the Commonwealth of the Philippines, any province, city, municipality or municipal district.
(b) Cemeteries or burial grounds.
(c) Churches and parsonages or convents appurtenant thereto, and all lands, buildings, and improvements used exclusively for religious, charitable, scientific, or educational purposes.
(d) When the entire assessed valuation of real property in any one municipality or municipal district belonging to a single owner is not in excess of one hundred pesos, or when the assessed valuation of a house, used as residence of the owner thereof, together with the lot on which the same is built, does not exceed three hundred pesos and such owner has no other property, the tax thereon shall not be collected, nor shall the tax be collected on a dwelling house built on the field, nor or an adjacent orchard, if any, as improvement, if the assessed value of each assessed separately, is not in excess of one hundred pesos, though in any event of the property shall be valued for the purposes of assessment and record shall be kept thereof as in other cases.
(e) Land held by a homesteader under an application filed in accordance with law prior to the approval by the Director of lands of the final evidence as required by law; but this exemption does not extend to buildings and improvements thereon the title to which is not in the Government.
(f) Machinery, which term shall embrace machines, mechanical contrivances, instruments, appliances, and apparatus attached to the real estate, used for industrial agricultural or manufacturing purposes, during the first five years of the operation of the machinery.
(g) Fruit trees and bamboo plants, except where the land upon which they grow is planted principally in such growth.
(h) Until December thirty-first, nineteen hundred thirty-nine, land not exceeding one hundred hectares used for airports or landing fields open to all aircraft operations, either free of charge or upon the payment of a nominal charge, together with such improvements thereon as are used exclusively for aeronautical purposes, when such airports are necessary facilities for air commerce. The airports or landing files herein exempted from taxation shall revert to their original taxation status upon the certification of the Secretary of Public Works and Communications that they are no longer necessary or suitable facilities for air commerce.
The provisions hereof notwithstanding, depreciation allowance shall be made for machinery mentioned in section three (f) equivalent to an amount not exceeding ten per centum of its value for its year of use.
276Cruz v. Commission on Audit, 420 Phil. 102, 109 (2001) [Per J. Pardo, En Banc].
277 Manila International Airport Authority v. Court of Appeals, 528 Phil. 181, 215 (2006) [Per J. Carpio, En Banc].
278 Id. at 219.
279 Id.
280 CIVIL CODE, art. 1113.
281 RTC records (Civil Case No. 02-0410), p. 29.
282 EXEC. ORDER NO. 292 (1987), Book III, title I, chapter 4, sec. 14 provides:
SEC. 14. Power to Reserve Lands of the Public and Private Domain of the Government. (1) The President shall have the power to reserve for settlement or public use, and for specific public purposes, any of the lands of the public domain, the use of which is not otherwise directed by law. The reserved land shall thereafter remain subject to the specific public purpose indicated until otherwise provided by law or proclamation.
. . . .
Manila International Airport Authority v. Court of Appeals, 528 Phil. 181, 220–221 (2006) [Per J. Carpio, En Banc].
283 PUBLIC LAND ACT, secs. 83 and 88 provide:
SECTION 83. Upon the recommendation of the Secretary of Agriculture and Natural Resources, the President may designate by proclamation any tract or tracts of land of the public domain as reservations for the use of the Republic of the Philippines or of any of its branches, or of the inhabitants thereof, in accordance with regulations prescribed for this purpose, or for quasi-public uses or purposes when the public interest requires it, including reservations for highways, rights of way for railroads, hydraulic power sites, irrigation systems, communal pastures or leguas comunales, public parks, public quarries, public fishponds, workingman’s village and other improvements for the public benefit.
SECTION 88. The tract or tracts of land reserved under the provisions of section eighty-three shall be non-alienable and shall not be subject to occupation, entry, sale, lease, or other disposition until again declared alienable under the provisions of this Act or by proclamation of the President.
Manila International Airport Authority v. Court of Appeals, 528 Phil. 181, 219–221 (2006) [Per J. Carpio, En Banc].
284 EXEC. ORDER NO. 292 (1987), Book III, title I, chapter 4, sec. 14 provides:
SEC.14. Power to Reserve Lands of the Public and Private Domain of the Government. (1) The President shall have the power to reserve for settlement or public use, and for specific public purposes, any of the lands of the public domain, the use of which is not otherwise directed by law. The reserved land shall thereafter remain subject to the specific public purpose indicated until otherwise provided by law or proclamation.
. . . .
Manila International Airport Authority v. Court of Appeals, 528 Phil. 181, 221 (2006) [Per J. Carpio, En Banc].
285 Rep. Act No. 5490 (1969), sec. 2 provides:
SEC. 2. Mariveles Port: establishment of foreign trade zone therein: admission of foreign and domestic merchandise.-To attain the above policy, Mariveles, Province of Bataan, is hereby made a principal port of entry by further amending section seven hundred one of Republic Act Numbered Nineteen hundred thirty-seven, otherwise known as Tariff and Customs Code of the Philippines, as amended. . . .
. . . .
There is hereby established in the Mariveles Port a foreign trade zone herein referred to as the Zone. Foreign and domestic merchandise of every description, except such as is prohibited by law, may, without being subject to the customs and internal revenue laws and regulations of the Philippines, except as otherwise provided in this Act, be brought into the Zone and may be stored, sold, exhibited, broken up, repacked, assembled, distributed, sorted, graded, cleaned, mixed with foreign or domestic merchandise, or. otherwise manipulated, or be manufactured except as otherwise provided in this Act, and be exported, destroyed or sent into customs territory of the Philippines therefrom, in the original package or otherwise[.]
286 Rep. Act No. 5490, sec. 2.
287 Rep. Act No. 7916 (1995), sec. 5 (ll).
288 Rep. Act No. 9728 (2009), sec. 3 provides:
SEC. 3. Conversion of the Bataan Economic Zone (BEZ) into the Freeport Area of Bataan. — The existing Bataan Economic Zone located in the Municipality of Mariveles, Province of Bataan is hereby converted into a special economic zone and Freeport to be known as the Freeport Area of Bataan (FAB). The FAB shall cover the Municipality of Mariveles, Province of Bataan.
289 Rep. Act No. 9728 (2009), sec. 4(e).
290Manila International Airport Authority v. Court of Appeals, 528 Phil. 181, 224–225 (2006) [Per J. Carpio, En Banc].
291 RULES AND REGULATIONS TO IMPLEMENT REPUBLIC ACT NO. 7916, Rule V, sec. 1 provides:
SECTION 1. Qualifications. – Lands and buildings within an ECOZONE can be leased only to ECOZONE enterprises/entities authorized by or registered with the PEZA and owned or controlled by Philippine nationals or by aliens under such terms and conditions as the Board may formulate.
292 Rep. Act No. 7916 (1995).
293 Rep. Act No. 7916 (1995).
294 Rep. Act No. 9728 (2009).
295 Rep. Act No. 7916 (1995), sec. 44 provides:
SEC. 44. Relationship with Local Government Units. – Except as herein provided, the local government units comprising the ECOZONE shall retain their basic autonomy and identity. The cities shall be governed by their respective charters and the municipalities shall operate and function in accordance with Republic Act No. 7160, otherwise known as the Local Government Code of 1991.