Planters Products Agricul~ Tural Cooprrative Marketing & Supply, et al. vs. Ceteae Case Ro, et al.

DecIsion

This is am appeal from the decision ef the Provincial Board of Assessment Appeals of Bataan up- holding the assessment made by the Prowincial Assessor of the same province as regerés certain machineries in- stalled by petitioner in its fertilizer plant in limay, Aetasn, On November 14, 1966, petitioner filed tax declara- tions covering certain machineries installed in its fertilizer plant in Iimay, wetaan. Under Section 3(f) of the old Assessment Law (Com, Act No. 70, as amended), machinery used for industrial, agricultural or sane fseturinge purposes was exempt from the real property tex during the first five years of operation, lDased on the tex declarations filed by petitioner, the Provin- cial Assessor of Pataan assessed the said machineries 186

DECISION «

CTA CASE MO, 2377 for taxation beginning with the yeer 1971, after five years of operetion of said machineries counting from the year 1966, Petitioner contested the asseasmert on the ground that the said machineries started operating only from Cetober, 1966, and the five-year exemption period should start from 1957, Accordingly, it is argued that the machineries should be taxed starting from 1972, and not from 1971. fetitioner's protest having been denied, it appealed to the ‘rovineial Soar of Assess- ment Appeals of Bataan which sustained the assessment. At the same time, the !rovineial Board of Assesssent Anoeals expressed the view that the apreal of petitioner ' was filed owt of time.

The parties, however, cubmitted en March 11, 1975, a compromise agreement which reads ag follows:

COMR NOW the parties in the above- entitled case, through their re tive counsels, ami to thie llonorable t respectfully submit the following Compromise

Agreenent:

_ te That the only issue left for the perties to thresh out in this case is whe- ther or not the rate of depreciation of the pos ee of the petitioner should be 85 or as te ee Lok ae al oy pe taxes therefor to commence in 4971;

2, That there is now also pending before the Local Board of Tax (Assessment) Appeals of ataan, entitled "Planters

DECISION «

CTA CASE NO, 2377 3 Produets (Phil.) Inc. vs. The Provincial Assessor of Dataan", docketed as Assess- ment Appeal lo. 7e2, where the issue is likewise that of depreciation reteos,

3. That so as not to delay the dis- position of this case before this ‘lonor- able Court of Tax Appeals, the parties herein have entered into a Compromise Agreement as follows:

a, Petitioner Planters Protucta Ine., will the Province of Pateen 1 lately after this Compromise Agreement is ap by this lonorable Court and has remiered its decision based there- on, the amount of #450,000,00 as | gens of the realty taxes due on ts machineries for the period covering October 1, 4971 up te and including Deeember 31, 1971, which represents the unpeid reelty taxes for that year after the 5S-yaars' tax holiday from 19663 be The Province of Bataan waives the realty taxes on these wachineries for the period from Jamary 1, 1971 to Seqveuney 3°, 1971, considering that during the first nine (9) months of operation in 1966, petitioner's fertilizer plant was never in commercie) operation, but only on test runs, ( c. Petitioner will also deposit

with the Office of the Provincial

Treasurer of Sate the amount of P35,118%.20 upon rendition of the decision thie Honorable Court beseéd on this omise Agreenent, to answer for any edditional reality taxes on these machineries in the event that the Local Soard of Tax

(Assessment) Appeals of Bataan in

Assessment Appeal Case Yo, 74-2, will finally decide that the depre- elation rates a. to the peti- tioner herein is only 6% and not 10h 8 years

DRCISION ~

CTA CASE NO, 2377 % ad. Should the Local Soard of Tax (Assessment) Appeals of bataan in Asseasment Appeal Case No. 72, finally decide that the depreciation rate should only be &%, ther the dercsit of = 839 918.20 bhall go to the Provinee of Bataan, in fall sayuunt ef the tax siathlity of the eo for the last quarter o 19714

e. Should the decision of the Leeal Board of Tax ewe

Appeals for Bataan

be thet the depreci ation ata pala ho 10%, then thie 4 4t of B35 +46,20 will be eredited to the peti caroie and applied to its future tax liabilities to the province.

WHERTFORR, it is gr 2 play eee prayed by the parties herein that thig Com omise Agree- ment be approved by this Nonorable Court and thet a decision based thereon be rendered, Pinding the aforesaid compromise agreenent fair and reasonable, the same is hereby approved,

Presiding Judge

I CONCURs

ho. FA

RAMON Le AVANCPIIA

Associate Judge

Associate Judge “STANIGIAO R. ALVYARPEZ is on leave,