CIR v. Aquafresh Seafoods Remedies Case No.

42
GR No. 170389, October 20, 2010
FACTS: Reso!de!t Aquafresh Seafoods I!c. so"d to #hi"is Seafoods, I!c. t$o arce"s of "a!d,
i!c"udi!% imroveme!ts thereo!, "ocated at Barrio &a!ica, Ro'as Cit(, for the co!sideratio! of #h
),100,000.00. Reso!de!t the! fi"ed a Caita" Gai!s *a' Retur!+A"icatio! for Certificatio! Authori,i!%
Re%istratio! a!d aid the Caita" Gai!s *a' -CG*. a!d the /ocume!tar( Stam *a' -/S*. due from the
said sa"e.
*he &ureau of I!ter!a" Reve!ue -&IR., ho$ever, received a reort that the "ots so"d $ere
u!derva"ued for ta'atio! uroses. *his romted the Secia" I!vesti%atio! /ivisio! -SI/. of the &IR,
$here it co!c"uded that the sub0ect roerties $ere commercia" $ith a ,o!a" va"ue of #h2,000.00 er
square meter. *hus, t$o Assessme!t Notices $ere se!t arisi!% reso!de!t of CG* a!d /S* defe!cies.
Reso!de!t se!t a "etter to the Re%io!a" /irector of Reve!ue Re%io! I"oi"o Cit(, rotesti!% the
assessme!ts made but $as de!ied for "ac1 of "e%a" basis.
O! revie$ $ith the C*A, the mai! thrust of reso!de!t2s etitio! $as that the sub0ect roerties
were classified as RR or residential and not commercial, $here the re3defi!ed ,o!a" va"ue $as
#h450.00 er square meter based o! the 1665 Revised 7o!a" 8a"ues of Rea" #roerties a!d that te !"R
officials ad no #$siness re%classif&in' te s$#(ect )ro)erties to commercial* Ru"i!% i! favor of
reso!de!t, the C*A oi!ed that that the e'isti!% Revised 7o!a" 8a"ues i! the Cit( of Ro'as shou"d
revai" for uroses of determi!i!% reso!de!t2s ta' "iabi"ities. 9R $as de!ied.
#etitio!er the! aea"ed to the CTA En Banc $hich dismissed the aea" for the reaso! that
etitio!er fai"ed to rove a!( ame!dme!t effected o! the 1665 Revised 7o!a" 8a"ues of Rea" #roerties at
the time of the sa"e of the sub0ect roerties. C*A :! &a!c based its ru"i!% o! Section 6 (E) of the
Natio!a" I!ter!a" Reve!ue Code -NIRC. wic re+$ires cons$ltation from a))raisers, from #ot te
)$#lic and )ri,ate sectors, in fi-in' te .onal ,al$ation of )ro)erties

"SS/0: ;hether the requireme!t of co!su"tatio! $ith comete!t araisers both from the rivate a!d
ub"ic sectors i! determi!i!% the fair mar1et va"ue of the sub0ect "ots is a"icab"e i! the case at bar.
1023:40S* 5ile te C"R as te a$torit& to )rescri#e real )ro)ert& ,al$es and di,ide te
6ili))ines into .ones, te law is clear tat te same as to #e done $)on cons$ltation wit
com)etent a))raisers #ot from te )$#lic and )ri,ate sectors* #etitio!er2s act of re3c"assif(i!% the
sub0ect roerties from reside!tia" to commercia" ca!!ot be do!e $ithout first com"(i!% $ith the
rocedures rescribed b( "a$. It bears to stress that A<< the roerties i! Barrio &a!ica $ere c"assified
as reside!tia", u!der the 1665 Revised 7o!a" 8a"ues of Rea" #roerties. *hus, etitio!er2s act of
c"assif(i!% the sub0ect roerties i!vo"ves a re3c"assificatio! a!d revisio! of the rescribed ,o!a" va"ues.

*his Court a%rees $ith the observatio! of the C*A that =,o!a" va"uatio! $as estab"ished $ith the
ob0ective of havi!% a! >efficient ta- administration #& minimi.in' te $se of discretion in te
determination of te ta- #ased on te )art of te administrator on one and and te ta-)a&er on
te oter and*7? 7o!a" va"ue is determi!ed for the urose of estab"ishi!% a more rea"istic basis for rea"
roert( va"uatio!. Si!ce i!ter!a" reve!ue ta'es, such as CG* a!d /S*, are assessed o! the basis of
va"uatio!, the ,o!a" va"uatio! e'isti!% at the time of the sa"e shou"d be ta1e! i!to accou!t.
If etitio!er fee"s that the roerties i! Barrio &a!ica shou"d a"so be c"assified as commercia",
the! etitio!er shou"d $or1 for its revisio! i! accorda!ce $ith Reve!ue 9emora!dum Order No. 5@3
46. Te #$rden was on )etitioner to )ro,e tat te classification and .onal ,al$ation
in Barrio !anica a,e #een re,ised in accordance wit te )re,ailin' memorand$m* I! the abse!ce
of roof to the co!trar(, the 1665 Revised 7o!a" 8a"ues of Rea" #roerties must be fo""o$ed.