This pertains to the article “Makati names Ayala, Aboitiz, Rockwell, SSS, govt as tax delinquents” in the column Money-Go-Round by Victor C. Agustin, which appeared in the Dec. 14, 2015 issue of The Philippine STAR.
This column cited the alleged unpaid real estate taxes of SSS properties at Urdaneta Village as described in the Notice of Real Property Tax Delinquency that was issued by the Office of the Makati City Treasurer.
For your information, SSS has contested this notice in its letter addressed to the City Treasurer of Makati in view of Section 2 of RA 8282 or the Social Security Act of 1997 that grants SSS its tax-exempt status. Further, the SS law provides that:
“Sec. 16. Exemption from Tax, Legal Process and Lien. – All laws to the contrary notwithstanding, the SSS and all its assets and properties, all contributions collected and all accruals thereto and income or investment earnings therefrom, as well as all supplies, equipment, papers or documents shall be exempt from any tax, assessment, free, charge, or customs or import duty; and all benefit payments made by the SSS shall likewise be exempt from all kinds of taxes, fees or charges and shall not be liable to attachments, garnishments, levy or seizure by or under any legal or equitable process whatsoever, either before or after receipt by the person or persons entitled thereto, except to pay any debt of the member to the SSS. No tax measure of whatever nature enacted shall apply to the SSS, unless it expressly revokes the declared policy of the State in Section 2 hereof granting tax-exemption to the SSS. Any tax assessment imposed against the SSS shall be null and void.
A thorough appreciation of this particular provision reveals that only a tax measure that expressly revokes SSS’ tax-exempt status by virtue of Section 2 of the SS Law can render it taxable. Hence, all SSS assets and properties are exempted from real estate taxes even if the property is being leased to another entity.
As of this writing, the Makati City Assessment Department has not yet issued a reply to SSS’ position on this matter.
Thak you or the opportunity to make clarifications.
Sincerely,
Marissu G. Bugante
Vice president
SSS Public Affairs and Special Events Division