8/3/2019 Quimpo vs Mendoza_digest

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QUIMPO V. MENDOZA00 SCRA 00

GUERRERO, AUGUST 31, 1981

NATUREpetition to review on certiorari

FACTS-Quimpo, an owner of a building in CDO, was assessed P20k for 1969, P400 annual realty tax payable in 4equal installments. Quimpo was able to pay the first 3 monthly installments but was not able to pay thelast installment.-On August the following year, he wanted to pay P124.00 (P100 tax due + P24 penalty) to Mendoza, theCity Treasurer of CDO, but Mendoza required him to pay P196 (P100 + P96 penalty based on City Charterof CDO). Quimpo consigned P124 with Clerk of Court then instituted mandamus with damages againstMendoza in CFI-CFI: dismissed based on Padilla v. City of Pasay and City Treasurer1. Pay P96 penalty = 2% of original tax which is P4002. no authority to entertain suit for failure of Quimpo to comply with provisions of Charter of CDO onpayment of tax

ISSUE (relevant lang, ung iba remedies and damages na eh)WON the basis for computing the tax penalty should be the tax payable for the said year or only theinstallment unpaid

HELDOnly base deficiency on unpaid installmentRatio. We rule for the petitioner, following the general rule in the interpretation of tax statutes that suchstatutes are construed most strongly against the government and in favor of the taxpayer. Moreover,simple logic, fairness and reason cannot countenance an exaction or a penalty for an act faithfully done incompliance with the law. Since petitioner is allowed by law to pay his real estate tax in four equalinstallments due and payable on four specified dates and having paid the first three (3) installmentsfaithfully and religiously, it is manifest injustice, sheer arbitrariness and abuse of power to penalize him fordoing so when he fails to pay the fourth and last installment.Reasoning. Padilla v. City of Pasay not applicable to the case as the said case was decide before RA 5447took effect in January 1, 1969. Petitioner was being assessed real property tax for 1969 so RA 5447 appliesto the petitioner already. RA 5447 amends city charters by providing that real property tax is due andpayable in 4 equal installments. Thus, each installment is due and payable on or before a specifiedstatutory limit. Default in 1 installment, the penalty for delinquency should be computed starting the dayafter the due date when the tax payer should have paid.

Disposition. WHEREFORE, judgment is hereby rendered ordering petitioner to pay to the City Treasurer ofCagayan de Oro City the amount of P116.00 representing full payment of the last installment of P100.00on the realty tax for the year 1969 and the tax penalty of P16.00 for eight months of his delinquency fromJanuary, 1970 to August, 1970; and ordering said City Treasurer to accept the aforesaid payment, issuethe official receipt therefor and a tax clearance certificate covering the aforementioned real estate tax andpenalty. No costs. Judgment modified. SO ORDERED.