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BASES CONVERSION v. CIR

FACTS:

The petitioner, Bases Conversion and Development Authority (BCDA), filed a petition for review with the Court of Tax Appeals (CTA) to preserve its right to pursue a claim for refund of Creditable Withholding Tax (CWT). The CWT was paid under protest in connection with BCDA's sale of BCDA-allocated units as part of the Serendra Project.

BCDA filed the petition with a request for exemption from the payment of filing fees. However, the CTA First Division denied BCDA's request and ordered it to pay the filing fees. BCDA filed a motion for reconsideration, but it was also denied.

Subsequently, BCDA filed a petition for review with the CTA En Banc, but it was dismissed due to non-payment of the correct legal fees. BCDA then filed a motion for reconsideration, which was also denied by the CTA En Banc.

BCDA argued that it is exempt from paying legal fees because it is a government instrumentality.

ISSUES:

  1. Whether the Bases Conversion and Development Authority (BCDA) is considered a government-owned and controlled corporation (GOCC).

  2. Whether BCDA is organized as a stock or non-stock corporation.

  3. Whether the Bases Conversion and Development Authority (BCDA) is exempt from the payment of docket fees.

  4. Whether BCDA is a stock or non-stock corporation.

RULING:

  1. BCDA is not considered a GOCC but a government instrumentality. A government instrumentality may be endowed with corporate powers but still retain its classification as a government instrumentality for all other purposes.

  2. BCDA is not organized as a stock or non-stock corporation since it does not have a capital stock divided into shares, voting shares, stockholders, or members. Therefore, BCDA is not a stock corporation nor a non-stock corporation.

  3. Yes, BCDA is exempt from the payment of docket fees because it is a government instrumentality vested with corporate powers.

  4. BCDA is neither a stock nor a non-stock corporation. It is a government instrumentality vested with corporate powers.

PRINCIPLES:

  • A government instrumentality can have corporate powers but still be classified as a government instrumentality for all other purposes.

  • The presence of corporate powers does not automatically make an entity a GOCC. The entity must also be organized as a stock or non-stock corporation.

  • Government instrumentalities vested with corporate powers are exempt from paying legal or docket fees.

  • BCDA does not qualify as a non-stock corporation because it is not organized for any of the purposes mentioned under Section 88 of the Corporation Code.