CH wants Lexmark case Junked

CEBU, Philippines - The Cebu City Government is seeking for the dismissal of the civil case for declaratory relief filed by a private company that protested paying its real property tax for being registered with the Philippine Economic Zone Authority (PEZA). 

The city government cited Lexmark Research and Development Corporation’s failure to state their cause of action in seeking for the dismissal of the case.

“A declaratory relief is only applicable if there is doubt as to the meaning of the instruments because the nature of a declaratory relief is to construe or interpret and not to assail an instrument,” the city government argued.

The city government contended that Lexmark’s action is improper.

“If petitioner wants to declare its rights arising from the said ordinance through a declaratory relief, it cannot at the same time attack the validity of the said ordinance by declaring it null and void because the latter can only be done through a proper and ordinary action,” the city added.

Lexmark filed a petition for declaratory relief with application for the issuance of a temporary restraining order against the city. The company wanted to be exempted in paying taxes to the city as well as nullify the City Ordinance 2016 or the local tax ordinance that requires PEZA-registered companies to pay real property taxes despite the Republic Act 7916.

Lexmark questioned the city government’s collection of real property tax from the company because it is registered with PEZA. It cited R.A. 7916 otherwise known as Special Economic Zone Act which exempts PEZA-registered companies from paying taxes.

Lexmark named Mayor Michael Rama, the city council and the city treasurer as respondents in the petition.

Lexmark paid under protest the amount of P4.9 million real property tax for the years 2009 to 2011 to avoid possible closure.— (FREEMAN)