GR 158261; (December, 2006) (Digest)
G.R. No. 158261 ; December 18, 2006
IN RE: PETITION FOR ASSISTANCE IN THE LIQUIDATION OF THE RURAL BANK OF BOKOD (BENGUET), INC., PHILIPPINE DEPOSIT INSURANCE CORPORATION, petitioner, vs. BUREAU OF INTERNAL REVENUE, respondent.
FACTS
The Rural Bank of Bokod (Benguet), Inc. (RBBI) was placed under receivership and subsequently ordered liquidated by the Monetary Board of the Bangko Sentral ng Pilipinas due to insolvency. The Philippine Deposit Insurance Corporation (PDIC) was designated as the liquidator. In the course of the liquidation proceedings before the Regional Trial Court (RTC) acting as a liquidation court, PDIC filed a Motion for Approval of its Project of Distribution of RBBI’s assets.
The Bureau of Internal Revenue (BIR) intervened, insisting that PDIC must first secure a tax clearance certificate for RBBI pursuant to Section 52(C) of the 1997 Tax Code before any distribution could be approved. The RTC agreed with the BIR and issued an order directing PDIC to comply, holding the approval of the project of distribution in abeyance pending such clearance. PDIC’s motion for reconsideration was denied, prompting it to elevate the case via a petition for review.
ISSUE
Whether the RTC, acting as a liquidation court, gravely abused its discretion in requiring PDIC, as liquidator of a closed bank, to first secure a tax clearance certificate from the BIR before approving the project of distribution of the bank’s assets.
RULING
Yes, the Supreme Court ruled that the RTC committed grave abuse of discretion. The legal logic is anchored on the hierarchy of applicable laws. The liquidation of a closed banking institution is specifically governed by the special provisions of the New Central Bank Act (Republic Act No. 7653), particularly Section 30, which outlines the process for the settlement of claims. This special law takes precedence over the general provisions of the Tax Code regarding corporate dissolution.
The Court clarified that the tax clearance requirement under Section 52(C) of the Tax Code applies to voluntary corporate dissolutions, not to involuntary liquidations of closed banks ordered by the Monetary Board. In such involuntary liquidations, the liquidator’s duty is to determine all claims, including tax claims, within the judicial liquidation proceedings. The BIR must thus file its claim with the liquidation court, which will adjudicate all claims according to legal order of preference. Requiring a tax clearance as a precondition improperly elevates the BIR’s claim and disrupts the statutory liquidation process. The Court ordered the resumption of liquidation proceedings for the proper determination and settlement of all claims.