SC stops QC gov’t from selling UP-Ayala Technohub

The Supreme Court building on Padre Faura Street in Manila. (File photo by CATHY MIRANDA / INQUIRER.net)

MANILA, Philippines – The Quezon City government cannot sell the University of the Philippines’ (UP) lot occupied by Ayala Land TechnoHub to compensate for the P117.18-million unpaid taxes, the Supreme Court said.

In an 18-page decision written by Senior Associate Justice Antonio T. Carpio which was made public Monday, the high court’s first division said UP is exempt from the payment of real property taxes.

The Court voided the statement of delinquency issued by the Quezon City government on May 27, 2014 as well as the final notice of delinquency issued on July 11, 2014, covering the said property.

“Considering that the subject land and the revenue derived from the lease thereof are used by UP for educational purposes and in support of its educational purposes, UP should not be assessed, and should not be made liable for real property tax on the land subject of this case,” the High Court said.

On July 22, 2014, UP was given a final notice of delinquency from the Office of the City Treasurer demanding payment for the unpaid real property taxes.

But the Office of the Solicitor General (OSG) earlier said UP is exempt from taxes based on Republic Act No. 9500 or the UP Charter. It explained that under Section 25 (a) of RA 9500, the revenues and assets of UP are exempt from “all taxes and duties.”

The high court, however, said under the contract of lease between the university and Ayala Land, Inc. (ALI), all improvements on the leased property are owned by ALI during the duration of the lease agreement.

Thus, the SC said, the improvements are not “assets” owned by UP such that the university’s exemption from taxes does not cover these improvements during the term of the lease.

The Technohub is a PEZA-approved Information Technology Park, with locations and amenities ideal for science and tech companies.