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National Power Corporation (NAPOCOR) vs. Province of Quezon and Municipality of Pabgilao 593 SCRA 47

NATIONAL POWER CORPORATION, Petitioner, versus PROVINCE OF QUEZON and MUNICIPALITY OF PAGBILAO, Respondents.

G.R. No. 171586 | 2009-07-15

D E C I S I O N

BRION, J.:

We resolve in this petition for review on certiorari the question of whether the National Power Corporation (NPC), as a government-owned and controlled corporation, can claim tax exemption under Section 234 of the Local Government Code (LGC) for the taxes due from the Mirant Pagbilao Corporation (Mirant)[1] whose tax liabilities the NPC has contractually assumed.

BACKGROUND FACTS

The NPC is a government-owned and controlled corporation mandated by law to undertake, among others, the production of electricity from nuclear, geothermal, and other sources, and the transmission of electric power on a nationwide basis.[2]...