Anda di halaman 1dari 1

REPUBLIC vs.

SPOUSES SALVADOR ISSUE: Whether the capital gains tax on the transfer of the expropriated
G.R. No. 205428 | June 7, 2017 property can be considered as consequential damages that may be awarded
J. Del Castillo to respondents.
(Digested by: DONNA LYN SANTY //Edited by: Lopez)
HELD: NO.
Topic: Expropriation  The RTC committed a serious error when it directed the Republic to
Petitioner: Republic (DPWH) pay respondents consequential damages equivalent to the value of
Respondent: Spouses Salvador the capital gains tax and other taxes necessary for the transfer of the
subject property.
DOCTRINE: Consequential damages are only awarded if as a result of the  "Just compensation [is defined as] the full and fair equivalent of the
expropriation, the remaining property of the owner suffers from an property sought to be expropriated. x x x The measure is not the
impairment or decrease in value. taker's gain but the owner's loss. [The compensation, to be just,]
must be fair not only to the owner but also to the taker."
FACTS:  In order to determine just compensation, the trial court should first
 Spouses Salvador are registered owners of a Parcel of land covered ascertain the market value of the property by considering the cost of
by a TCT in Valenzuela. acquisition, the current value of like properties, its actual or potential
 Republic, represented by DPWH, filed a verified complaint for the uses, and in the particular case of lands, their size, shape, location,
expropriation of the said parcel of land as well as the improvements and the tax declarations thereon. If, as a result of the expropriation,
there on for the construction of the C-5 Northern Link Road Project the remaining lot suffers from an impairment or decrease in value,
from NLEX to McArthur Highway. consequential damages may be awarded by the trial court, provided
 The spouses received two checks from the DPWH representing that the consequential benefits which may arise from the
100% of the zonal value of the subject property and the cost of the expropriation do not exceed said damages suffered by the owner of
one- storey semi-concrete residential house erected on the property the property.
amounting to P161,850.00 and P523,449.22, respectively.  In this case, the RTC deemed it fair and just for DPWH to pay for the
 RTC issued the corresponding Writ of Possession in favor of the fees. This is an error. It is settled that the transfer of property through
Republic. RTC rendered judgment in favor of the Republic expropriation proceedings is a sale or· exchange within the meaning
condemning the subject property for the purpose of implementing the of the National Internal Revenue Code, and profit from the
construction of the project transaction constitutes capital gain. Since capital gains tax is a tax on
o RTC likewise directed the Republic to pay respondents passive income, it is the seller, or respondents in this case, who are
consequential damages equivalent to the value of the liable to shoulder the tax.
capital gains tax and other taxes necessary for the  In fact, DPWH is authorized by the BIR as a withholding agent for the
transfer of the subject property in the Republic's name.’ expropriation of real property for infrastructure projects
 The Republic moved for partial reconsideration on the issue relating  Consequential damages are only awarded if as a result of the
to the payment of Capital Gains Tax expropriation, the remaining property of the owner suffers from an
 RTC denied the motion for having been belatedly filed. The RTC impairment or decrease in value. In this case, no evidence was
also found no justifiable basis to reconsider its award of submitted to prove any impairment or decrease in value of the
consequential damages in favor of respondents, as the payment subject property as a result of the expropriation.
of capital gains tax and other transfer taxes is but a
consequence of the expropriation proceedings.
 Republic filed the present Petition for Review on Certiorari assailing
the RTC's Decision and Order.

Anda mungkin juga menyukai