Bureau of Internal Revenue v. Tico Insurance Company, Inc., Glowide Enterprises, Inc., and Pacific Mills, Inc.
GR No. 204226
April 18, 2022
It is only after the notice of tax lien is annotated on the pertinent title that a judgment creditor’s rights can be affected and the tax lien may be considered to retroact to the date of assessment. GLOWIDE and PMI’s rights over the condominium units are superior to the BIR’s claim, and are thus entitled to possession and conveyance of the condominium units.
Which between the BIR, on the one hand, and Glowide and PMI, on the other, is entitled to ownership of the condominium units.
The Supreme Court held that while a tax lien retroacts to the time when the tax assessment was made, it shall not be valid against a judgment creditor until the notice of tax lien has filed with the Register of Deeds and annotated on the affected title. In this case, the BIR’s tax lien could only be enforceable against Glowide and Pacific Mills when it was annotated on the title on February 15, 2005. Since the rights of Glowide and Pacific
Mills over the condominium units retroact to December 22, 2000, the date of inscription of their notice of levy, the condominium units may no longer be considered Tico’s property when the BIR annotated its tax lien in 2005. After the sale of the condominium units, rights over the condominium units have already vested upon Glowide and Pacific Mills, subject only to Tico’s right of redemption.
