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    Maactan Scebu International Airport Authority V Marcos

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    Ann Marin
    The document discusses a case involving the Mactan Cebu International Airport Authority claiming exemption from real property taxes. The Authority was created by law to manage airports and initially enjoyed tax exemption. However, a city demanded payment of realty taxes totaling over 2 million pesos. The issue is whether the Authority is a 'taxable person'. The court ruled that the Authority's tax exemption was withdrawn by the Local Government Code and it is considered a taxable person subject to all taxes except real property tax.

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    Maactan Scebu International Airport Authority V Marcos

    Uploaded by

    Ann Marin
    23 views1 page
    The document discusses a case involving the Mactan Cebu International Airport Authority claiming exemption from real property taxes. The Authority was created by law to manage airports and initially enjoyed tax exemption. However, a city demanded payment of realty taxes totaling over 2 million pesos. The issue is whether the Authority is a 'taxable person'. The court ruled that the Authority's tax exemption was withdrawn by the Local Government Code and it is considered a taxable person subject to all taxes except real property tax.

    Original Description:

    Public monitoring of the procurement process and the implementation of awarded contracts with the end in view of guaranteeing that these contracts are awarded pursuant to the provisions of the Act and this IRR, and that all these contracts are performed strictly according to specifications.”

    Original Title

    Maactan sCebu International Airport Authority v Marcos

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    The document discusses a case involving the Mactan Cebu International Airport Authority claiming exemption from real property taxes. The Authority was created by law to manage airports and initially enjoyed tax exemption. However, a city demanded payment of realty taxes totaling over 2 million pesos. The issue is whether the Authority is a 'taxable person'. The court ruled that the Authority's tax exemption was withdrawn by the Local Government Code and it is considered a taxable person subject to all taxes except real property tax.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    23 views1 page

    Maactan Scebu International Airport Authority V Marcos

    Uploaded by

    Ann Marin
    The document discusses a case involving the Mactan Cebu International Airport Authority claiming exemption from real property taxes. The Authority was created by law to manage airports and initially enjoyed tax exemption. However, a city demanded payment of realty taxes totaling over 2 million pesos. The issue is whether the Authority is a 'taxable person'. The court ruled that the Authority's tax exemption was withdrawn by the Local Government Code and it is considered a taxable person subject to all taxes except real property tax.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Mactan Cebu International Airport

    Authority v. Marcos 261 SCRA 667 (1996)


    Oct 23
    Facts:
    Petitioner Mactan Cebu International Airport Authority was created by virtue of R.A. 6958, mandated to principally
    undertake the economical, efficient, and effective control, management, and supervision of the Mactan International
    Airport and Lahug Airport, and such other airports as may be established in Cebu.

    Since the time of its creation, petitioner MCIAA enjoyed the privilege of exemption from payment of realty taxes in
    accordance with Section 14 of its charter. However, on October 11, 1994, Mr. Eustaquio B. Cesa, Officer in Charge,
    Office of the Treasurer of the City of Cebu, demanded payment from realty taxes in the total amount of
    P2229078.79. Petitioner objected to such demand for payment as baseless and unjustified claiming in its favor the
    afore cited Section 14 of R.A. 6958. It was also asserted that it is an instrumentality of the government performing
    governmental functions, citing Section 133 of the Local Government Code of 1991.

    Section 133. Common limitations on the Taxing Powers of Local Government Units.

    The exercise of the taxing powers of the provinces, cities, barangays, municipalities shall not extend to the levi of
    the following:

    xxx Taxes, fees or charges of any kind in the National Government, its agencies and instrumentalities, and LGU’s.
    xxx

    Respondent City refused to cancel and set aside petitioner’s realty tax account, insisting that the MCIAA is a
    government-controlled corporation whose tax exemption privilege has been withdrawn by virtue of Sections 193
    and 234 of Local Government Code that took effect on January 1, 1992.

    Issue:
    Whether or not the petitioner is a “taxable person”

    Rulings:

    Taxation is the rule and exemption is the exception. MCIAA’s exemption from payment of taxes is withdrawn by
    virtue of Sections 193 and 234 of Local Government Code. Statutes granting tax exemptions shall be strictly
    construed against the taxpayer and liberally construed in favor of the taxing authority.

    The petitioner cannot claim that it was never a “taxable person” under its Charter. It was only exempted from the
    payment of realty taxes. The grant of the privilege only in respect of this tax is conclusive proof of the legislative
    intent to make it a taxable person subject to all taxes, except real property tax.

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