In the Philippine administrative and legal landscape, a Tax Declaration is often misunderstood as a conclusive title of ownership. In reality, it is a primary document for real property tax assessment. However, because it serves as "strong evidence of possession" and a "basis for a claim of ownership," the process of transferring or issuing a new Tax Declaration is strictly regulated.

A recurring legal issue arises when local government units (LGUs), specifically the Office of the City or Municipal Assessor, issue or transfer a Tax Declaration based on a request from a party who is not the registered owner and who lacks a Special Power of Attorney (SPA).

1. The Legal Nature of a Tax Declaration

Under Philippine law, specifically settled jurisprudence by the Supreme Court, a Tax Declaration is not a certificate of title (like a Torrens Title).

Proof of Possession: While not conclusive evidence of ownership, it is a "colorable title" that proves the declarant has a claim over the property.
Basis for Taxation: Its primary purpose is to satisfy the requirements of the Local Government Code of 1991 (Republic Act No. 7160) regarding real property taxes.

Because a Tax Declaration can be used to initiate adverse possession claims or secure loans in the informal sector, its unauthorized issuance causes significant legal prejudice to the actual registered owner.

2. Requirements for Transfer: The Role of the SPA

The Manual on Real Property Appraisal and Assessment Operations issued by the Department of Finance (DOF) outlines the requirements for transferring a Tax Declaration. When a person other than the registered owner applies for the transfer or issuance:

Evidence of Ownership: A notarized Deed of Sale, Donation, or Succession documents.
Authority to Represent: If the applicant is merely a representative, a Special Power of Attorney (SPA) is mandatory.
Clearances: Certificate Authorizing Registration (CAR) from the BIR and local Transfer Tax receipts.

If an Assessor processes a transfer without an SPA from the registered owner (in cases where no valid transfer document like a Deed of Sale exists), the agency bypasses due process and the "chain of custody" of property rights.

3. Grounds for Liability of Government Agencies

Administrative Liability

Government employees, particularly Assessors and their staff, are governed by Republic Act No. 6713 (Code of Conduct and Ethical Standards for Public Officials and Employees).

Neglect of Duty: Failure to verify the authority of the applicant constitutes "Gross Neglect of Duty."
Misconduct: If the issuance was done with intent to favor a third party, it constitutes "Grave Misconduct," which is punishable by dismissal from service.
Violation of LGC: The Local Government Code requires Assessors to maintain correct records. Issuing a declaration to the wrong person creates "cloud on the title," violating their mandate.

Civil Liability

Under Article 27 of the Civil Code, any person suffering material or moral loss because a public servant or employee refuses or neglects, without just cause, to perform his official duty may file an action for damages.

If an Assessor’s office issues a Tax Declaration without an SPA, and that document is used to sell the property to an innocent purchaser, the LGU and the specific officer can be held liable for damages.

Criminal Liability (R.A. 3019)

The Anti-Graft and Corrupt Practices Act is the most potent tool against such actions. Specifically:

Section 3(e): Causing any undue injury to any party, including the Government, or giving any private party any unwarranted benefits, advantage or preference in the discharge of official administrative functions through manifest partiality, evident bad faith, or gross inexcusable negligence.

Issuing a Tax Declaration to a non-owner without an SPA is often categorized as "gross inexcusable negligence."

4. The "Doctrine of Presumption of Regularity"

Government agencies often defend themselves by citing the "presumption of regularity in the performance of official duties." However, this presumption is rebuttable.

In Assessor’s Office vs. Court of Appeals, the courts have held that the presumption is vanished once it is shown that the mandatory requirements—such as the presentation of an SPA or valid title—were bypassed. The lack of an SPA is a procedural fatal flaw that nullifies the presumption of regularity.

5. Remedies for the Aggrieved Property Owner

If a Tax Declaration has been issued to a third party without the owner’s consent or an SPA, the owner may take the following steps:

Administrative Protest: File a formal petition for cancellation of the Tax Declaration before the City or Municipal Assessor.
Appeal to the LBAA: If the Assessor refuses to cancel it, the owner can appeal to the Local Board of Assessment Appeals (LBAA).
Annulment of Tax Declaration: A civil case in the Regional Trial Court (RTC) for the "Annulment of Tax Declaration and Damages."
Ombudsman Complaint: A criminal or administrative complaint against the specific government officer for violation of R.A. 3019 or R.A. 6713.

Summary of Legal Principles

The issuance of a Tax Declaration without an SPA is not merely a clerical error; it is a breach of administrative protocol that can lead to the deprivation of property rights. While the LGU itself has corporate liability, the individual public officers involved bear the brunt of administrative and criminal prosecution if they fail to exercise the due diligence required in verifying the authority of a representative.