'Payanig sa Pasig' properties exempt from taxes

Two parcels of government land that used to be the site of “Payanig sa Pasig" are exempt from real property and business taxes and fees from the city mayor’s permits. However, portions leased to private enterprises are unable to enjoy the exemption, the Department of Justice (DOJ) said. The so-called “Payanig" properties – now the site of Metrowalk mall – are exempted from paying government taxes, Justice Secretary Agnes Devanadera said in a three-page legal opinion, citing a provision in the Local Government Code (Republic Act 7160). Under Section 234 of the said law, real property owned by the Republic of the Philippines or any of its political subdivisions are exempt from taxes “except when the beneficial use thereof has been granted, for consideration or otherwise, to a taxable person." “At the outset, we would like to stress that Section 234 of the Local Government Code is clear… Some of the contracts of lease provide that the lessees shall be solely responsible for any permits, fees, and licenses of whatever nature, which may be required by any government agency for its operation," Devanadera’s opinion said. “Clearly, it is the lessees that should bear these expenses for it is their business which benefits them." The lessor shall not be liable for the non-issuance of any such permits, fees and licenses except as may be provided, she added. The Justice Department was prompted to issue the opinion after an official of the Presidential Commission on Good Government (PCGG) sought clarification regarding the issue. PCGG Commissioner Ricardo Abcede claimed that Mid-Pasig Devt. Corp. – the property’s registered owner – has leased lots to various individuals for the purpose of “maintaining the assets and properties of the entities under the IRC Group of Companies, which includes Mid-Pasig, and to pay for the salary of its skeletal force and the expenses of suits in court involving said property and entities." The 18.5 hectare properties were surrendered to the national government by businessman Jose Yao Campos, who controls United Laboratories, and a known associate of president Ferdinand Marcos. Leasing portions of the Payanig properties is needed to raise funds before the property is sold, Abcede said. However, it can be sold only after final judgment regarding its ownership is decided by the Sandiganbayan, the government’s special anti-graft court. - GMANews.TV