Emerlinda S. Talento v. Hon. Remegio M. Escalada.,Jr.

Facts: Petron was a ssessed by the Provicial Assesors Office of Bataan for a
total tax liability of 1billion pesos from 1994 to the second quarter of 2007.
Petron filed a petition before the LBAA contesting the assessment and while
the petition before the LBAA was pending Petron received a final notice of
delinquent real property tax with a warning that the same would be levied
and auctioned should Petron fail to settle.
Petron sent a letter to Talento stating that the action of the Treasurers office
would be premature since there is a pending petition before the LBAA.
Despite this, Petron later on received a notice of sale of its properties and on
the same day Petron filed a TRO and preliminary injunction. The petition
was granted. The petitioner directly appealed to the SC by way of Rule 65 of
the Rules of Court.
Issue: Whether or not the RTC erred in granting the TRO.
Law/s: Section 7 Rule V of the Rules of Procedure of the LBAA
Section 222 of the Local Government Code
Arguments:
Petitioner Respondent
Assessment of properties for real
property taxation only covers four
years under Sec. 222 of the LGC.
Under the procedures of the LBAA
any action of the Treasurers office
would be premature because there
was a pending petition

Conclusion:

The Court A Quo did not err in granting the TRO. It is of judicial notice that
taxation is the lifeblood of the government and its collection shall not be
suspended by appeal. However there is an exception to the rule i.e. where
the taxpayer has shown a clear and unmistakable right to refuse or hold in
abeyance the payment of taxes. This becomes relevant because in the
instant case what is sought to be enjoined is the sale of property worth P1.7.
Billion. Hence the reassessment would have made an impact on the tax
liability of Petron. Considering that the assessment issued by the provincial
treasurer covered a period of more than 10 years which is not allowed under
Section 222 of the Local Government Code.
Appeal can be entertained and the collection can be suspended when a bond
has been posted as provided for under Section 7 Rule V of the Rules of
Procedure of the LBAA. In this case the bond was equivalent to the amount
assessed.

Petition dismissed.
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