I. Introduction

For decades before the Revised Forestry Code (Presidential Decree No. 705, 1975), local assessors across the Philippines issued tax declarations over vast tracts of land—even where those lands were, in truth, forest land belonging to the State. Many of these “old” or pre–PD 705 tax declarations are still being used today as evidence of supposed private ownership or as the basis of real property tax assessments.

When government agencies later determine that an area is actually forest land or part of the public forest/timberland, a recurring issue arises:

What happens to those old tax declarations? May (or must) they be cancelled, and with what legal effect?

This article explains, in the Philippine context:

the constitutional and statutory framework on forest land;
the nature and value of pre–PD 705 tax declarations;
the legal basis and grounds for cancellation;
the administrative process typically followed;
the impact on ownership claims, titling, and taxation; and
practical considerations for landholders, LGUs, and line agencies.

It is intended as general legal information and not as case-specific legal advice.

II. Constitutional and Statutory Framework

1. Forest land as inalienable public domain

Across the 1935, 1973, and 1987 Constitutions, a constant rule appears: lands of the public domain are classified into agricultural, forest (timber), mineral, and national parks, and only agricultural lands may be the subject of disposition or alienation to private persons.

Thus:

Forest land, public forest, and timberland are generally outside the commerce of man.
They cannot be acquired by prescription, sale, donation, or any form of private conveyance, unless lawfully reclassified and released as alienable and disposable (A&D) agricultural land.

2. Public Land Act and land classification

Under the Public Land Act (Commonwealth Act No. 141) and subsequent issuances:

Land classification is a prerogative of the State, exercised originally through the Bureau of Forestry, then the Bureau of Forest Development, and now through the DENR.
There is a legal presumption that all lands of the public domain are forest land unless clearly shown by official classification to be A&D.

3. PD 705 – Revised Forestry Code (1975)

PD 705 consolidated and strengthened forest laws:

Declared forest lands and public forests as inalienable, except as provided by law;
Directed the Government to conduct land classification and delimitation;
Preserved forest land for forest uses, watershed protection, biodiversity, and public welfare.

After PD 705, the government more aggressively delineated forest vs. A&D lands, which exposed the fact that many pre–PD 705 tax declarations covered areas that were, and still are, forest land.

4. Local taxation laws (Real Property Tax Code and Local Government Code)

Real property taxation has been governed successively by:

PD 464 (Real Property Tax Code, now repealed) and
RA 7160 (Local Government Code of 1991).

These laws:

Empower provincial/city/municipal assessors to assess and declare real property for tax purposes;
Allow correction and cancellation of erroneous, double, or illegal assessments;
Provide remedies via Local and Central Boards of Assessment Appeals.

However, LGUs cannot change land classification (forest vs. A&D); they must respect national land classification made by competent national agencies. When a parcel is confirmed to be forest land, continued assessment as private taxable property becomes legally untenable.

III. Nature and Evidentiary Value of Tax Declarations

1. Tax declarations are not proof of ownership

Philippine jurisprudence has consistently held:

Tax declarations are not conclusive proof of ownership.
They are, at most, indicia of possession or a claim of title, which courts may consider along with other evidence.
Their probative value is especially weak when they cover public land, and weaker still if that land is classified as forest or timberland.

2. Pre–PD 705 tax declarations over forest land

Before PD 705 and widespread land classification:

Local assessors often accepted self-reporting from supposed landholders.
Many forest or timber areas were declared and assessed as private agricultural or pasture land.
Payment of real property tax was sometimes encouraged even without clear proof that the land was A&D.

These pre–PD 705 tax declarations did not convert forest land into private property. Courts repeatedly stress that:

No matter how long taxes were paid or how old the tax declarations are, forest land cannot be converted into private land by the mere passage of time or the payment of taxes.

IV. Forest Land vs. Alienable and Disposable Land

Whether a pre–PD 705 tax declaration should be cancelled depends fundamentally on land classification, which is a technical and legal determination.

1. Determining land classification

The usual basis includes:

Land Classification (LC) maps and certifications issued by the DENR;
Administrative orders or proclamations declaring areas A&D, forest, or protected;
Supporting technical maps and survey data.

For land to be considered alienable and disposable:

There must be a positive act of the State (e.g., presidential proclamation or DENR administrative issuance approved in accordance with law);
The specific parcel must fall within the area described as A&D in the official LC maps;
For judicial titling, some jurisprudence requires that the land was already A&D as of a specific cut-off date (e.g., prior to application).

If no such positive act exists, or DENR certification shows the parcel as forest/timberland or unclassified public forest, the land remains forest land.

2. Consequences for tax declarations

Where official classification shows that the parcel:

Is A&D as of a given date – tax declarations may be valid indicators of possession and taxation.
Is forest land or unclassified public forest – tax declarations are erroneous and may be considered for cancellation because the land is not supposed to be privately owned or taxed as private land.

V. Legal Basis and Grounds for Cancellation of Pre–PD 705 Tax Declarations

1. Principle: erroneous assessment of inalienable public land

Under real property tax laws and assessment regulations, assessors must ensure assessments are:

Made only on taxable real property;
Reflect correct ownership, classification, and actual use.

Tax declarations may be cancelled where:

The property is not actually subject to tax (e.g., national government property, forest land);
The classification is erroneous (e.g., declared agricultural but officially forest land);
There is a double or overlapping assessment;
There has been mistake, fraud, or misrepresentation in the declaration.

Forest lands and public forests are generally exempt from real property tax to the extent they are property of the Republic, unless special laws provide otherwise. Hence, pre–PD 705 tax declarations over forest land are often categorized as erroneous assessments.

2. Supporting legal doctrines

Some key legal doctrines relevant to cancellation:

Inalienability of forest land – Forest land cannot be acquired by prescription, nor converted into private property by tax declarations.
Primacy of land classification – LGUs must conform to land classification determined by national government (DENR/forestry agencies).
Administrative correction power – Assessors may revise, correct, or cancel tax declarations and assessments when errors are discovered, subject to due process and appeal rights.

VI. Administrative Process for Cancellation (Typical Practice)

Procedures may vary by LGU and over time, but the cancellation of pre–PD 705 tax declarations on forest land generally follows these basic steps:

1. Triggering event or request

Cancellation may be initiated by:

DENR – through a letter or certification informing the city/municipal/provincial assessor that specific parcels are forest land, part of a timberland block, protected area, or unclassified public forest;
COA or other oversight agencies – noting that government forest land is being improperly taxed;
The declared “owner” – who discovers (often via DENR or court proceedings) that the land is forest land and cannot be privately owned;
Another government agency (e.g., NIPAS or watershed management authorities).

2. Submission of land classification evidence

Typically, the party initiating cancellation furnishes:

DENR certification stating that the land, by coordinates or technical description, is within forest land or unclassified public forest;
Copies of LC maps or references to the LC Map number and project;
Sketch plans or survey plans locating the tax-declared parcel on the LC Map.

Assessors rely on these documents because they do not have authority to revise DENR land classification; they can only align tax records with classification.

3. Verification by the assessor

The assessor’s office usually:

Reviews the tax map, property index numbers, and historical tax declarations;
Verifies that the survey description in the tax declaration corresponds to the area identified by DENR as forest land;
Identifies any overlapping declarations and whether the parcel is partly forest and partly A&D.

4. Notice and due process

To respect due process, the assessor may:

Issue written notice to the declared owner/taxpayer of the intent to cancel or revise the tax declaration;
Give the taxpayer an opportunity to:
- Submit countervailing evidence (e.g., their own DENR certifications, survey results);
- Argue that the land is within A&D or has been properly reclassified or converted.

5. Issuance of order cancelling the tax declaration

If, after evaluation, the assessor concludes that:

The land is confirmed forest land or unclassified public forest; and
The tax declaration is therefore illegal or erroneous,

the assessor may issue:

An Order of Cancellation of the tax declaration;
A revised tax map showing the area as “forest land / government property” rather than private taxable property.

The assessor then informs:

The treasurer, to stop further billing or collection of RPT on the cancelled parcel;
Relevant agencies (DENR, COA, etc.), for alignment of records.

6. Remedies of the taxpayer

If the taxpayer disagrees:

They may contest the assessment or cancellation before the Local Board of Assessment Appeals (LBAA), then the Central Board of Assessment Appeals (CBAA).
However, disputes over land classification itself (forest vs. A&D) are generally resolved with the DENR and, ultimately, the courts, not by assessment appeals.

VII. Effects of Cancellation

1. On ownership claims

Cancellation of a tax declaration does not, by itself, adjudicate ownership. However, in the context of forest land:

It aligns the tax records with the legal reality that the land is part of the inalienable public domain;
It undermines any claim that tax declarations and tax payments could have ripened into ownership by prescription.

Courts often treat the cancellation of tax declarations over forest land as consistent with the doctrine that:

No private title can be acquired over forest land, and any supposed tax-based claims must yield to the State’s ownership.

2. On real property taxes

Cancellation stops the imposition of future real property tax on the parcel as privately owned land;
Past taxes already paid are a separate issue:
- They may be considered voluntary payments on an erroneous basis;
- Refunds or credits typically require timely protest and compliance with requirements under the Local Government Code;
- In practice, many taxpayers do not recover taxes paid on forest land, especially if the error was long-standing and unprotested.

3. On titling and registration

Where no title exists, cancellation of the tax declaration highlights that the land cannot be validly titled in favor of a private person unless and until:
- It is lawfully reclassified as A&D; and
- Other requirements for judicial or administrative confirmation are met.
If there is a Torrens title issued over forest land, jurisprudence tends to treat such title as:
- Void as to the area that is forest land;
- Subject to annulment or reconveyance in favor of the State.

Cancellation of tax declarations aligns the tax records with the State’s position in any subsequent title-related case.

VIII. Interplay with Ancestral Domains and Special Regimes

In some areas, lands that appear as “forest” on older LC maps may fall within:

Ancestral domains or ancestral lands under the Indigenous Peoples’ Rights Act (IPRA);
Protected areas under the NIPAS law;
Watersheds, reservations, or other special uses.

In such situations:

Tax declarations issued to non-IP individuals may be cancelled to align with the recognition of ancestral domains or the protected status of the area;
The basis of occupation rights shifts from conventional public land laws to special regimes (IPRA, NIPAS, special proclamations), but the basic principle remains:
- Ordinary private ownership based on pre–PD 705 tax declarations is not recognized over such lands.

IX. Practical Considerations

1. For landholders with pre–PD 705 tax declarations

It is critical to verify land classification through DENR (and, where relevant, protected area or NCIP authorities).
If the land is forest land:
- Continued assertion of private ownership based solely on tax declarations is legally weak;
- Consider exploring special legal pathways (e.g., ancestral domain recognition) if applicable.
Cancellation of a tax declaration, while seemingly adverse, may prevent ongoing tax liabilities for land that cannot legally be owned.

2. For LGUs (assessors and treasurers)

LGUs should sync their tax maps and records with DENR’s land classification to avoid:
- Imposing tax on forest lands that are State property;
- Exposing themselves to audit findings or legal challenges.
When informed that certain parcels are forest land, assessors should:
- Follow due process, notify taxpayers, and carefully document cancellation;
- Ensure that partial forest/partial A&D parcels are properly segregated and re-assessed.

3. For DENR and other line agencies

DENR certifications and LC maps should be:
- Clear and parcel-specific (ideally with coordinates);
- Readily available to LGUs and stakeholders.
Coordination through joint circulars or task forces with LGUs can streamline the systematic cancellation or revision of erroneous assessments.

X. Conclusion

The cancellation of pre–PD 705 tax declarations on forest land is not merely a clerical cleanup; it reflects and enforces fundamental constitutional and statutory principles:

Forest lands belong to the State and are generally inalienable;
Tax declarations and tax payments, however old, cannot convert forest land into private property;
Local tax records must ultimately align with national land classification and agrarian and environmental policies.

For landholders, assessors, and line agencies, the proper handling of these cancellations is crucial to:

Prevent spurious private claims over forest land;
Ensure accurate taxation and avoid illegal assessments;
Uphold environmental protection, indigenous rights, and the State’s stewardship over forest resources.

Because each parcel and history is unique, anyone facing an actual controversy involving pre–PD 705 tax declarations on suspected forest land should seek specific legal advice and obtain current certifications from the appropriate government offices.